Summary of Key Points from Conference Call Industry Overview - The oral GLP-1 market has significant potential, particularly in diabetes and weight loss, with an estimated total market size exceeding $150 billion. Oral GLP-1 drugs are expected to capture 30% to 50% of this market, indicating a vast opportunity for growth [2][3][14]. Core Insights and Arguments - Early participants in the oral GLP-1 market, such as Pfizer and Eli Lilly, have faced setbacks, creating opportunities for Chinese biotech companies like Heng Rui, Haosen, East China Pharmaceutical, and Innovent Biologics, which are actively developing related drugs [1][2]. - Eli Lilly's Orpho Phase III clinical data serves as a crucial reference for future oral GLP-1 drug development, showing a weight reduction of 11.5% at the highest dose, but with notable side effects such as nausea and vomiting, leading to a high discontinuation rate [1][5]. - Heng Rui's oral GLP-1 assets are nearing Phase I status, while Haosen has sold some assets to Merck. Clinical trials indicate that high-dose groups typically use longer titration times to mitigate side effects, with varying weight loss results across different treatment cycles [1][6][8]. - The baseline BMI of Chinese patients is lower than that of Western patients, affecting cross-trial data comparisons. Safety remains a critical consideration for the long-term use of GLP-1 drugs [7][11]. Company-Specific Developments - Heng Rui has two assets in development, one being a small molecule and the other a peptide oral version, both close to Phase I status. Haosen has multiple assets, with one sold to Merck and others in development [6][13]. - East China Pharmaceutical and Innovent Biologics are also advancing their research, with East China expected to release Phase III data by the end of this year or early next year [3][11]. - Investors are encouraged to focus on Heng Rui, East China, and Wuxi iPAC, as these companies are making significant progress in their respective projects [3][14]. Market Dynamics and Future Considerations - The medical device market is projected to exceed 74 billion yuan by 2035, with an annual growth rate of over 10%. The electrophysiology segment is expected to quadruple in surgical volume due to unmet demand and the trend of domestic substitution [3][15]. - Huatai Medical has competitive advantages in cost and distribution channels, with its high-end RF products poised to accelerate domestic substitution [16]. - PFA technology is becoming the mainstream treatment for atrial fibrillation, with Huatai Medical being the first to have dual-pulse electric field catheters approved, enhancing its market position [17]. Investment Opportunities - Huatai Medical's current valuation is 3,940 times its 2026 PE, slightly above the A-share medical device average of 30 times, but justified by its superior growth rate of 29% over the next three years [19]. - The company is expected to expand its overseas market presence significantly, targeting regions with high demand such as Russia, Brazil, and Indonesia, with a total market size projected to reach 30 billion yuan by 2035 [18]. Conclusion - The oral GLP-1 market presents substantial investment opportunities, particularly for Chinese biotech firms that are advancing their drug development pipelines. The medical device sector, especially in electrophysiology, is also poised for growth, driven by domestic demand and technological advancements. Investors should closely monitor the developments of key players like Heng Rui, East China, and Huatai Medical for potential returns.