Core Viewpoint - The global insulin raw material market is projected to reach USD 3.76 billion by 2031, with a compound annual growth rate (CAGR) of 4.1% in the coming years [1][6]. Market Overview - Insulin raw materials are active pharmaceutical ingredients used in the production of various insulin formulations, crucial for diabetes management [1]. - The market is dominated by major players such as Novo Nordisk, Sanofi-Aventis, and Eli Lilly, with the top five companies holding approximately 88.0% of the market share in 2024 [6][16]. Product Segmentation - Insulin analogs represent the largest segment, accounting for about 82.0% of the market share [8]. - Rapid-acting insulin is the primary demand source, making up approximately 34.9% of the market [10]. Market Drivers - The increasing prevalence of diabetes, especially in developing countries and aging populations, is driving demand for insulin formulations, thereby expanding the upstream raw material market [13]. - Advances in biotechnology and production processes, including recombinant DNA technology, have made insulin production more efficient and cost-competitive [13]. - Countries are promoting generic drug policies to encourage local production of insulin raw materials, which supports the growth of domestic industries [13]. Challenges - The market faces high technical barriers, making it difficult for small and medium enterprises to enter and achieve stable production [14]. - The international market is highly concentrated, with major multinational companies dominating, posing challenges for new entrants in customer acquisition and product recognition [14]. - Stricter regulatory requirements, including GMP compliance and data integrity, are critical for market entry, necessitating continuous investment from companies [14]. - Fluctuations in raw material prices, stringent environmental policies, and geopolitical factors may disrupt the stability of raw material production and exports [14].

Group 1 - The company is actively expanding its international market presence, particularly in the U.S. insulin market through strategic partnerships and ongoing clinical trials for three types of insulin [1] - The company has achieved sales of approximately 200,000 units of liraglutide injection in Q1 2025, with a strong foundation for annual sales growth due to successful procurement results [2] - The company is focusing on the sales of insulin analog products and expanding its market presence for GLP-1 receptor agonists and SGLT-2 inhibitors to meet diverse patient needs [2] Group 2 - The company has received approvals for insulin products in several developing countries, including Nicaragua and Uzbekistan, and is working on expanding registrations for insulin products in these markets [1] - The company is advancing its clinical trials for new products, including THDBH120 for weight loss, which has completed its Phase II clinical trial [2][3] - The company is not currently developing oral insulin products due to technical challenges but will monitor industry advancements for potential future adjustments in R&D strategy [3] Group 3 - The company’s parent group, Dongbao Group, is working to reduce its share pledge ratio, which is currently high due to long project cycles and financial pressures [3] - The long-term outlook for Dongbao Group is positive, with ongoing projects and products expected to enter a recovery phase, improving operational capabilities [4]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [5][7]. Core Views - The company is positioned as a leading player in the heparin raw material market, with a strong potential for growth in its API business due to improving market conditions [3][4]. - The company is focusing on its sterile injection formulations, which are experiencing rapid growth in overseas markets, supported by a robust product matrix and strategic acquisitions [4][61]. - The global biosimilar market is expected to expand significantly, and the company is well-positioned to capitalize on this trend through both self-developed products and strategic partnerships [5][67]. Summary by Sections 1. Company Overview - The company has transitioned from a traditional heparin raw material supplier to a high-end injection formulation and biosimilar provider, covering multiple therapeutic areas [13][16]. 2. Heparin API Market Improvement - The heparin raw material market is showing signs of recovery, with expectations for price stabilization and potential revenue growth for the company [3][31]. - The company has a strong production and sales level in its heparin API business, which is crucial for funding its injection formulation expansion [36][37]. 3. Focus on Sterile Injection Formulations - The company's injection business has seen significant revenue growth, with a 12.8% increase in 2023 and a compound annual growth rate (CAGR) of 47.4% from 2018 to 2023 [41][46]. - The company has a diverse product line in the injection segment, including low molecular weight heparin and anti-tumor agents, with a strong competitive position in the domestic market [47][55]. 4. Biosimilar Drug Development - The global biosimilar market is projected to grow rapidly, with the company actively developing multiple biosimilar products and securing market entry through strategic acquisitions [67][72]. - The company has made significant progress in obtaining FDA approvals for its biosimilar products, positioning itself as a key player in the U.S. market [72][73]. 5. Financial Projections - The company is expected to achieve substantial profit growth, with projected net profits of 9.0 billion, 11.9 billion, and 15.4 billion yuan for 2024, 2025, and 2026, respectively [5][6].