Bayer has teamed up with Hua-Yuan Pharmaceuticals to deepen the market for hundreds of billions of dollars, and type 2 diabetes will be an innovative drug.

On August 17, Bayer announced a strategic partnership with innovative drug research and development company Huali Pharmaceuticals to reach a commercial cooperation agreement on a new oral diabetes treatment drug for type 2 diabetes, Dorzagliatin.
In accordance with the terms of the agreement, Huali Pharmaceuticals will be responsible for clinical development, registration, product supply and distribution as a licensed holder of the drug, and Bayer, as a promotional service provider, will be responsible for the marketing, promotion and medical education activities of the product in China.
will receive an advance payment of Rmb300m, in addition to a milestone payment of Up to Rmb4.18bn.
For the two companies to join forces, the industry believes that in the future, relying on Bayer's leading edge in the field of diabetes management in China, as well as the innovative capabilities of Hualing Pharmaceuticals in the field of diabetes research and development, the two sides will work together to promote the sale and promotion of dorzagliatin in China, to provide Chinese diabetic patients with new treatment options to benefit more patients.
fact, the industry to maintain a high degree of interest in the cooperation between the two, mainly because of the hundreds of billions of diabetes market development potential.
, diabetes is a common endocrine metabolic disease, with genetic susceptivity, triggered by environmental factors.
With socio-economic development, lifestyle changes (increased energy intake and reduced exercise, etc.) and an ageing population, the incidence of type 2 diabetes is increasing globally year by year, especially in developing countries, where it is expected to increase even faster (it is expected to increase by 170 per cent by 2025).
2019, the number of adults with diabetes worldwide has reached 463 million and is expected to reach 700 million by 2045, according to the International Diabetes Federation's (IDF) new Global Diabetes Map (9th edition).
, the number of people with diabetes in China continues to rise, to about 116.4 million.
statistics, the proportion of people with diabetes in China is less than 34%.
, the industry estimates that China's anti-diabetic drug market is expected to grow from 51.2 billion yuan in 2017 to 97.8 billion yuan in 2022 and 173.9 billion yuan in 2028.
2017-2022, the compound annual growth rate is expected to reach 13.8%.
the continuous improvement of the domestic level of medical security and the increase in the diagnosis rate of diabetic patients year by year, the market space for sugar-lowering drugs will continue to be widened.
Overall, this partnership between Hua-China Pharmaceuticals and Bayer has created a new joint sales model between Chinese biotechnology companies and multinational pharmaceutical companies, not simply "giving way" to sales rights, but similar biotechnology companies entrust clinical trials to external CRO institutions to work together to build research and development teams and platform operating models.
not only does this mean that Huala Pharmaceuticals will continue to be profitable from dorzagliatin's sales, but it is also likely to provide other biotech companies with lessons to learn, sparking another round of capital markets interest in the industry's development model.
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