Hua Medicine (Shanghai) Ltd. ($2552)

Okay. Hi, everyone. Welcome to join the Hua Medicine 2025 Results Investor Call. This is [ Zhu Chen ], China Healthcare Analyst at CLSA and Citic International. Today, we are very honored to have invited the management team from Hua Medicine to join with us. They include Dr. Li Chen, Founder and CEO of Hua Medicine; CFO, George Lin. And I think without further ado, I will hand over the call to Dr. Li Chen. Dr. Chen, thank you.

Welcome to Hua Medicine 2025 Annual Results. It's really great pleasure to share with you my joy about the success of Hua Medicine in 2025 in 3 major areas. I think, first of all, we have demonstrated Hua Medicine has established the capability of managing the R&D, manufacturing and commercialization, the full pharmaceutical innovation, the production capability has enhanced and then our commercialization has achieved great success by introducing our own sales and marketing team. At the same time, we have extended our glucokinase activator program into the glucose homeostasis technology platform. Through the basic research and clinical research, we have extended the potential impact of glucose homeostasis in diabetes, metabolic diseases, weight loss, neurodegeneration and other new disease areas. And third, we continue to expand our market access through the second generation of GKA in U.S. and through registration of dorzagliatin in Hong Kong towards the 100 million diabetes patients in Southeast Asia. So let me share with you our most recent results, which covers the sales for 2025, where we reached the 4 million packs in Mainland China compared with 24, that's a 91% increase, which gave us close to RMB 500 million in sales revenue. In this key milestone, I think it is critical that for Hua Medicine, to establish over 180 professional sales teams, including the sales and marketing team, medical team and then commercialization teams. And those teams work together to drive the sales in 10 regions in China. And then in this whole efforts, we cover over 3,000 hospitals and then reached over 500,000 patients in Mainland China. That's a great achievement and then a significant improvement from 2024 where Hua Medicine is relying on our commercialization partner to drive the market access and commercialization. So at the same time, we have received a tremendous support from the central government who has granted same reimbursement price as '24 and '25 for the coming '26 and '27. So we increased the capacity in the commercialization team and the manufacturing team and then we're expecting continued growth with this retained NRDL price. The other very important benefit from central government policy is our substance of matter patent get 5-year extension approved by the SO, which means for our dorzagliatin, the market exclusivity extended over 2034 together with our formulation patent that covers through 2038. So this double security on our intellectual property in China will ensure our long-term growth for this important medicine in China. We have received many reports from the individual in China who conduct clinical studies through the investigator-initiated trial, IITs. Although it's very rare to hear IIT in the chronic disease area, Hua Medicine probably is among the first company engaged the IIT in the diabetes area. And this work was initiated a long time ago, including our DREAM study. But now with more physicians get access to dorzagliatin in the clinic in China and outside China, the IITs become a variable -- a very favorable approach to investigate dorzagliatin and extend our glucose homeostasis platform. On top of the IITs, Hua Medicine also organized clinical studies in the real-world setting. The 701 is a real-world study consists of 380 type 2 diabetes patients. Unlike in the early studies and the Phase III trial, where we are focused on early-stage diabetes or drug-naive diabetes. Here, in 701, we are really focusing on the middle or late-stage diabetes who are taking more than 1 or more than 2 diabetes drugs and then 41% of those patients actually using insulin. Now how dorzagliatin work in those middle or late-stage type 2 diabetes patients? Well, the result is very good. A1c reduction is very significant. And then also most importantly, it's improved the time in range measurement, which means it's improved the glucose homeostasis parameter from 40- 50 to 70. 70% of the TIR is the treatment guideline and the golden standard for the diabetes management. I think this is a great outcome, which we published at American Diabetes Society in 2025 last year. And this year, at ADA, we're going to present our data on 601, which is study, including over 2,000 type 2 diabetes in China and many of them have 1 or 2 antidiabetic drugs, 20% use insulin with their averaging disease duration around 8 years. 30% of them has a duration greater than 10 years. Now in this group of patients, we have continued to demonstrate dorzagliatin favorable safety profile and no new findings or adverse events was discovered in this 2,000 patients and over a year period of treatment and observation. And I think many -- many opportunities were explored in this 601 study, including the add-on dorzagliatin to metformin, SGLT2, insulin, GLP-1 and other antidiabetic medicine. In this whole process, we have find improve efficacy over the existing therapy and then showing synergy with certain therapies in this study. And then we will report this top line results at June this year. Also, we have received the report at the last ADA that Dr. [ Rita Basu ] have conducted very critical studies using Triple T-cell technology. And then in her study, the subject was treated with dorzagliatin for 6 weeks. So those U.S. patients has a long disease history and then they have a very poor function in the liver to store glycogen. Liver glycogen is a very important component that stores the glucose that we uptake from the food. And this is important in managing the post-meal glucose excursion and then prevent the hypoglycemia when we exercise. The diabetics lost their hepatic glycogen roughly by 50% to 60%. That's where their blood glucose fluctuated very much. No drug, including insulin can repair this. Dorzagliatin is the first one demonstrated its effect of restore the hepatic glycogen storage and then thus further demonstrate scientifically why dorzagliatin managing glucose homeostasis very well. The other example I'd like to share with you is come from an investigator-initiated trial by the Chinese physician. They published this result recently, showing that the superiority of dorzagliatin in combination with GLP-1 agonist, semaglutide -- as semaglutide become a popular treatment for the diabetics and obesity, we are very interested to see how dorzagliatin combining with semaglutide would bring the benefit to the patients. Now the 2 group parallel study with group using monotherapy of semaglutide, 60 subjects enrolled in this group. And then the other 60 subjects enrolled in dorzagliatin combination with semaglutide. After 12-week study, showing that the overall response rate is superior in the dorzagliatin combination, which reached to the 96%, where the monotherapy is 78%. And then the remarkable response, which means a super response in the patients in the dorzagliatin combination reached to 58% compared with 28% in the monotherapy. So this is really encouraging. And also, if we look at the body weight reduction, the 2 parameters is commonly used One is the BMI, the combination dorzagliatin with sema gave really reduced the BMI from 30 to 27, right? That's from the obese to the overweight, right? That's a big progress. The most important part is to change the weight lens, right? So the weight length was initially close to 100 centimeter, close to a meter, right? And then get reduced in the combination therapy to 88 centimeter. That's a great reduction. That weight length reduction is very important factor that related to the pancreatic function and insulin resistance. So the team also measure the improvement of the beta cell function in the pancreas and where I'm very pleased to see the combination offers the homeo beta improvement almost by 20%, reached to 50% in the homeo beta. So this, again, is one of the 10 examples in the investigator-initiated clinical study showing dorzagliatin offers benefit not only in the type 2 diabetes, but also in the obesity potentially in the future, will demonstrate their use in the neuroscience and then high priority. Now dorzagliatin was recently registered in Hong Kong. Now from the novel mechanism, Hong Kong government established this plus mechanism, dorzagliatin named [ My Home Sys ] was approved for Hong Kong market. And then this is the first chronic disease medicine get approved in those regions through this us mechanism. We have also submitted the registration in Macau. And so, we will developing our commercial capability in the Greater Bay Area, where include Hong Kong, Macau and Cancun so that using this Great Bay as the base we push forward our dorzagliatin market into Southeast Asia, where over 100 million diabetes patients would benefit from our innovation. So the second generation, again, has been moving very smoothly in U.S. The second generation is really try to position our drug together with insulin, GLP-1 and then their regulator GK, right? And the second generation really is a new molecular entity with a new patent covers through to 2042. And also it's a once-a-day oral formulation really fit the habits and the compliance interest in the Western medical community. We are expanding the indication from diabetes to obesity, NASH, DKD and anti nephrosis through the future investigation of our second generation in those regions. The Phase Ib trial, which is monocenter multi-dose placebo-controlled study with 5 cohorts using 3 strength tablets. Now we are starting the Cohort 4 and then we expect we finish the Cohort 5 in May so that we can report our study results in June time frame. As I already mentioned, we have advanced the dorzagliatin utilization and application to the glucose homeostasis technology platform, and we are expanding the opportunity from first-in-class into the first-in disease indication in the diabetes prevention, priority, MOD 2 and also will benefit the U.S. regulatory policies, advance dorzagliatin or TKa into the early Alzheimer's diseases. So those are the new frontier for the novel indication to meet unmet medical needs. So you look at our pipeline, many new indications opportunities will expand from the dorzagliatin through the technology platform. And also, we are received IND approval for the fixed-dose combination of dorzagliatin with metformin. So we expect an NDA filing for FDC dorzagliatin metformin in '27. Now we are getting to the financial sector. I'll invite George to share the wonderful results. George?

Thanks, Dr. Chen. As you can tell, Qua Medicine had a milestone year. And this is not something to be just to be glossed over. I mean, we had to establish our own in-house commercialization team for all of China. We had to renew our NRDL price for the next 2 years, which was successful. And we had to compete with a lot of established type 2 diabetes drugs as well as GLP-1. And in spite of all those headwinds, we were able to achieve, as you can see, incredible top line growth, 93% from a revenue perspective. You'll notice that by PAX, this is actually a little bit higher. During this period, we were able to reduce our distribution costs by a little bit. So although we grew by PAX by 91%, our revenues went up by 93% -- you look at our gross profit with the economies of scale, each tablet price, we drive it down. And here, you can see we drove it down by 8.2%. But if you look at our interim report, right, we actually increased another 3% from the half year mark. So if you think about the whole year to get this kind of growth in profits, that's very, very differentiated, I believe, from a Chapter 18A company to focus on these kind of things. And we expect this to continue growing. This will not stop simply at this 56%. It will go up, I would say, 10% to 20% more. Selling expenses, we're investing. But having said that, we are actually 33% of sales as opposed to when it was with our partner in 2024, it was almost 60% Again, this drops right to our bottom line. And as a result, let's go to the next slide, Dr. Chen. As a result, we actually are profitable. We'll show that later. In R&D, we're actually controlling our expenses very well. Dr. Chen has lots of things going, a lot of irons in the fire of things to investigate. And a lot of this is from investigators that are doing that on their own because they're seeing benefits. This is very different from GLP-1, where you see kind of the benefits moves, their efficacy because people drop off due to cost or because of side effects. Here, we're seeing increasing benefits, right? Real-world evidence, we're seeing increasing benefits in terms of potential signals for benefits in neurological, potential benefits in cardiovascular. We're exploring all these, and we're going to be exploring that also in new first-in disease indications like prediabetes, remission and prevention. I mean it's kind of strange that over the last 100 years of diabetes, nobody has focused on these. But our drug because it addresses the root cause, we're going to be doing that. Having said that, our R&D expenses held actually out of absolute value down. We are spending very little money to explore for these and collecting real-world evidence. And administrative costs, despite the fact that our company has almost doubled in size, our administrative cost on an absolute perspective has remained pretty much the same, a $2 million net savings in renminbi. But you can see as a percentage of sales, it has dropped significantly. Next slide. And then we mentioned this earlier, but from a profitability perspective for the commercialization operations, even though we've increased, right, by 180 people in our salespeople from 0 as of January 1, 2025, you can see we've actually become profitable. So this business model is very sustainable. And as you can see, on a pro forma basis, our losses has actually decreased significantly, almost half. We do have that onetime extraordinary improvement, right, in profit. So you saw this $1 billion, and Dr. Chen has already kind of spoken about this, but this is due principally to our increase in sales and also to the release of contract liabilities that was capitalized as a result of the termination of the contract with our former partner. The last slide in terms of financials, you can see actually, we've been very prudent. And we're not -- we're the type of company, as you probably have known now that we've been public for almost 8 years, is that we continue with our mission, which is glucose homeostasis and the benefits of that. It's fairly derisked. We keep a very strong capital position. In fact, our capital position is very similar to the time that we did our last raise during the IPO in September 2018. And as of the end of the year, we still have RMB 1 billion of gross cash that's available here. And then the last slide, I'll just kind of sum it up and then we can go to Q&A. You can see that our momentum is growing. And again, this is very different from all the other drugs that you're actually exposed to. in GLP-1, there's 40 to 80 other GLP-1s candidates that are actually going to enter the market. And what kind of havoc that will do, including the fact that GLP-1 sema has gone generic in India and China, for example, as of last week, right? For us, we don't face any of those headwinds. Our snowball, if you will, will keep on continuing to increase, right? As more people take the drug, -- they like it. There's very little side effect. And some people are actually noticing on their own all these different benefits, and they're using it in combination, as Dr. Chen showed with GLP-1, with sema, the most popular one, right? And as a result, all of these new GLP-1s that are coming in, these people will see that by adding us, they can be differentiated. You can get almost 100% response rate. You can see this first line here. This is very important. This is not a forecast. This is not a guide of what we expect our revenues is. This is actually specifically from our Board and our employees have all signed up to it is this is the revenue target for us to actually vest for our stock options. So in some extent, it's better than guide the line in respect -- in my perspective. But effectively, you're showing that for our options to vest, we need to hit 2026, $900 million; in 2027, $1.35 billion, et cetera. So this is very exciting. We're launching in Hong Kong. This is fantastic as a new international, a new position, but very importantly, a language. It's actually going to be available with an English label. And once we go into Macau, you'll have Portuguese. That's very interesting and can be used by other international expats, for example. And we filed our IND for dorzagliatin and metformin FDC. This will be very exciting. This extends the patent life out as well. In terms of our clinical pipeline, Dr. Chen has explained this very clearly, but we're moving with the second gen for the Western obese population. This is a once-daily patents go out to the mid-2040s. This will be very exciting to see how much additional efficacy we can get while maintaining that very good, solid, benign safety profile. We expect that data to come out mid-2026. We're going to continue posting a lot of real-world evidence. Dr. Zhang, our CMO, she's got a lot of real-world evidence that we are collecting. Remember, there's over 500,000-plus patients that have been prescribed this drug. A lot of them have stories to tell. We're going to actually go for a first-in-disease indication filing in China with MODI tube that will be spearheaded by our KOLs, both in China and in Hong Kong. So that's very exciting. And then we're going to focus also on these other first-in-disease indications that other people have not been able to really advance in frailty in early-stage Alzheimer's or mild cognitive impairment. And then while we're doing all this, we're going to continue focusing strategically and opportunistically to look for good opportunities to partner to take our drug internationally with our second generation and also potentially some in-licensing in combination, especially with the combo with GLP-1, that's quite exciting. There are so many different GLP-1s oral that are being explored in China, for example, they'll need a sales force. When they see us, we're actually the perfect complement for them because if you're obese, you're not going to really look at our dorzagliatin. And so they don't have to fear we're an ideal candidate. -- for those kind of people that are still coming to us right now and very excited. So 2026 is just the beginning. And I guess I'll pause there. Dr. Chen, if you have any more, feel free to end it or we can just go straight to Q&A with Matthew as well.

Yes. Let's go to Q&A to Matthew, right Thanks, George.

Thanks, Dr. Chen and George. So before that, first, Dr. Chen got some questions from my side on -- first, congratulate on the results and the sales growth is truly amazing. And can you remind us regarding your sales target in 2 years' time? Previously, you mentioned RMB 1 billion sales by 2027. And are you still feeling very confident on achieving that? And also maybe some more color beyond '27, maybe, for example, your peak sales? And how would you be able to achieve that? Yes. And that's the first question. And yes, I will ask the second question also at one time. Second is regarding on the pipeline front, you know that you are expecting some top line data readout for the second-generation right GK, right? And how do we understand your progress after that, if you see some promising data and will be -- so how will you interact with the regulatory agency in the U.S. and further step to launch this product? Yes. Those are my 2 questions.

Yes. Thanks. I think I will give my two cents on this and then I'll let George to expand it. I think 2027, last year, when we start the initiation of commercialization-driven operation, we did the math. And then we understand that for dorzagliatin, we continue successful and then in next 5 years, starting from '25, we'll have the continuous growth given 3 important factors. First of all, our competition and then the patent protection should be further extended beyond '29. We got that. The second is the price. the drug price for the innovation drug was in question in the earlier days. And I think last year, the central government has realized that new drug industry will become an important pillar for China economic growth and then the policy to support the medical insurance and then come up with new strategy in the payers approach. I think overall, showing the support in the price and on the new product. So dorzagliatin also benefit of keeping our price the same as 2025. So we have a wonderful product, and it will meet this 2 very important insurance that is the patent life, the market exclusivity and the price. And then the third thing, of course, is the promotion. Hua Medicine is actually engaged the OEM strategy at the beginning of '25 and then get all the employees educated trained as a representative of our products. And this is the exercise not just start from '25. We actually start this exercise every year starting '22. With this, every employee understand what is homeostasis and why dorzagliatin offer the clinical benefit, right? And then with quickly accelerated enrollment of our sales team. So we hired 100 people in the first 3 months of '25, right? So this year, in the first 3 months of '26, we hired 120 people with the experience in oral antidiabetic sales. Where are those people come from? They actually come from the multinational pharmaceutical companies when their major patents in SGLT2, DPP4 inhibitor one-off patent and get their product getting to VBP. So those product representative with 5 to 10 years' experience in the endocrinology and diabetes fields joined Hua. And they brought tremendous productivity, right? I think on average, when I do the market productivity analysis in the diabetes field, the industry standard is 1.5 million per person. We are reaching 3 million productivity per person, right? We have 120 people. We sold 4 million packs, right? So we will have $500 million revenue. So you can see the significant investment into the right people, bring the right team on the bus is very important. But the last one, I think, is important is your bus, how solid is your bus, right? We implemented the digital platform, managing the commercialization, starting the days we're collaborating with our partner, Bayer, the system allow us to track the material flow, the meeting and also the marketing and sales activities. And the whole network allow us to empower our first-line sales representative to access our data material from our digital platform and then our AI agents were able to provide online support on the product information, the disease utilization and then the drug labels, the content related questions. So all this is a formulation -- the formula of future success in our 2027 goals, right? I will let George elaborate a little bit on this, and then we can talk about the pipelines. George, do you want to?

Yes. I think you've said it very well, Dr. Chen, and you can clearly sense the confidence that Dr. Chen as our captain in leading this bus of these targets that we're going to hit. And of course, Dr. Chen, myself and Dr. Zhang as Executive Directors had to propose to the Board as to these incentive-linked revenue targets. And if we were not that confident of hitting it, I think we would have been -- we would have resisted. But as you can see, these were announced around the November -- late November, December time frame. We got a pretty good sense that the 2 most important things for certainty of hitting these sort of revenues we had in hand. And number one, as Dr. Chen mentioned, was the patent exclusivity now out to 2034. That means that our salespeople are very incentivized to continue going on and selling the drug. As Dr. Chen mentioned, a lot of the MNCs lost a lot of salespeople when they went to VBP, right? When Acarbose went VBP, right, you saw a huge increase in actually JANUVIA and SGLT2, right? And now we're going to see that benefit when GLP-1 and when JANUVIA and these other drugs go generic, actually, it will be a lot easier for our salespeople to have those -- schedule those calls with the doctors, et cetera. So that's very important. The second most important thing, it's probably the most important thing is affordability. And the NRDL has already agreed to extend our same exact price, no price cut out to 2027. That's wonderful news. And again, when you look at this pie, the China government wants to grow the economy. They're not going to want to cut so fiercely that basically nobody wants to innovate and the economy goes down. And if they're going to cut, they'll probably cut in the more expensive areas like in oncology and all these other areas that have multiple in class. Again, we're only in class. And the benefits that we see as long as the drug remains very effective and the lasting effects is very long. We're seeing it amazing to remission, right, that people are studying prevention. This is like first time people have seen in type 2 diabetes. And on top of that, it's very safe. So people will not want to switch. And now people want to add on to very popular drugs that they're taking like insulin and GLP-1, and we've seen amazing results. So again, these are very, very good back win that make us very confident of achieving these so that our options will be able to vest. So I think from that perspective, this is probably as good as it gets in terms of derisked for us. Now Dr. Chen needs to go and continue investing in the salespeople. One thing we didn't mention is like we haven't covered all of China yet. I mean when we look at our monthly and quarterly reviews of the salespeople, there are whole provinces and cities where we're not making much sales, and we're already growing like this. And of course, we would love to cover them all, but it takes time also for these doctors who are fairly conservative in nature to hear that word of mouth from their colleagues that, oh, this drug is working very well because at the beginning, there were doubts. But as I mentioned, the snowball effect of familiarity, real-world evidence, excitement of IIT, these are great signals that the doctors, the diabetic doctors in China are really getting on our bus and really trying to see what else they can do with it.

Yes. Great. Thanks, George. I think the confidence from us, internal team and also the confidence from our physicians, right? And they are doing investigation. They are initiating investigation by themselves, applying for the government fund, right? And then I think that's where a novel drug when they get on the market and also in the national reimbursement list and many patients, physicians can access it and use it. And then they create a lot of good ideas for me, right? So that's where I think for the second generation, we're not only positioned in the diabetes, I think in the obesity in the fatty, in the memory loss, they all have an issue of insulin resistance. And then dorzagliatin has a good solution to it, right? Dorzagliatin regulate insulin, regulate GLP-1, regulate glucagon. -- right? Those are 3 major hormones that controls our body for the glucose and lipid metabolism. So that's where second-generation study, we are incorporating the CGM as a new technology into the clinical study, the once-a-day tablets will shown how it regulate a whole day blood glucose. At the same time, we extended a 7-day study into 15 days so that we'll be able to move in to look into the biomarkers that will be better support future research program. I think we are doing well with the first 3 dose group. And then we are initiating the fourth #4 cohort as I speak, right? And then we'll finish up the last cohort in May so that we'll start to share that with our potential partners. By the way, this study design has been discussed with our potential partners. We have got their input and also we share the common vision and the value of how glucokinase played the central role together with the existing therapy like insulin, GLP-1 and others. So I think you will see more data and reports in this area soon. Thanks.

[Operator Instructions] Okay. I have one more question from my side. We have a very kind of this plan, this revenue ramp-up trajectory is truly amazing, I would say. And could we -- could you give some color regarding the OpEx in the next couple of years? And for example, selling expense and also the R&D expense Yes, that the -- kind of how would you -- how is your expenses planning related to your further example, selling activities and also the research.

One more slide, Dr. Chen, one more before. Yes. Let me take a crack at this, Matthew. Of course, we don't want to give too concrete guidance. But you've talked about the top line, and so you can kind of get a sense of where we're going with that. I would say it's very -- and Dr. Chen, please opine as well. But I would say because we are working with STA, we don't have our own manufacturing capabilities, right? So we are working with STA of WuXi as our API manufacturer, we're working with [ Danaher ] on finish and fill, et cetera. But you can see that gross profit margin getting up to that 70%, 75% over the next couple of years. So that's going to be a huge amount of bottom line profit alone with the increase in size of sales, right? So percentage-wise, you're going to be looking at that 70% to 75% in the next year or 2. Selling expenses, we actually want to invest. So I think around the steady state, we're going to keep it here because what we want to do is increase that size of the -- to get to that big peak sales, we want to invest. We want to get into all those territories. And so from an investor perspective, you wouldn't necessarily want us to see us really kind of try to save money on the selling expense, but I don't think it would go much higher than the current rate. But in terms of commercialization, for our China operation and includes some of Hong Kong. There will be some costs associated with Hong Kong that will be different from this, which we want to invest. That's what you're going to see on the commercialization. On the R&D, we're going to continue doing a lot of these Phase I Phase IIa. But for the big, big studies, right, international, et cetera, we're going to want a partner to help shoulder those expenses. And so we're not going to try to do that with our current capital position. And based on our conversations with partners, we're pretty confident that we'll be able to find some to shoulder those, and they would be able to get exclusive rights to the various regions. Dr. Chen, any other?

Yes. I think that's pretty much in the ballpark. I think if I look at other biotech companies and when they move into the product launch and then commercialization, I think the initial sales expense was really high and then stabilize at least the products starting to mature at the range of 30%, 35%. So we are in the right range, roughly around 35%-ish. I think that's important. And also for the China-based biotech company who want to make a profit like Hua where we can bring the benefit to our investors is we need to maintain our R&D in around the 30%-ish for our investment and then around the 20%, 25%-ish in the administration, the fixed cost, right? So the company is in the right shape, as I say, as we grow the market, I think the increase of the share of this commercialization from the current 33 to 35-ish is a reasonable expectation. But overall, the company will become profitable during 2027 from the company perspective.

That's great. Yes, maybe one final question for me is, are you -- regarding the whole pipeline portfolio, we are now focusing on the commercial side. And regarding the early-stage assets and as George mentioned, there will be some slight spending, but bigger part, the late-stage part will be partnering with others. So for early-stage research and is there any kind of area we are interested in? And also are we going to do it in-house or maybe some considering some in-licensing regarding -- very good question.

Yes. I think like I mentioned that Far Medicine is very fortunate to advance our research from dorzagliatin as a product. But during the product development in the last 10 years, we have achieved a much better understanding about the glucohomeostasis and how the glucose homeostasis is impact on our immunology in human and the neuro homeostasis, where this neuro function and then the astrocyte function. Through this, -- there are studies in the preclinical and clinical start to build connections between blood glucose fluctuation that is impaired glucose homeostasis linked to Alzheimer's, linked to autoimmune diseases linked to cancer, all of energy deficiency related to the ATP production become obvious -- and then that connection allow us to look into the synergy pathways and mechanism in the regulation of insulin receptor and regulation of THR, hormone regulation in FGF class of molecule and how those will be able to cluster together with glucose homeostasis and then return our patients from a disease state to the healthy state, right? So that's a reverse of the disease progress -- and then in that line, we are looking for external opportunities through the academics and then a potential biotech company in China. The combination with GLP-1 is obvious, and there's so many GLP-1s in China market that we can either become a commercialization partner with them, and we can doing a co-development with our combinations in those areas. So I think it's certainly open up a new world and Farm Medicine is entering into a new era of innovation and extending the glucose homeostasis into the neuro and immunohomeostatic control to have a better life in health.

Okay. Thanks, Dr. Chen. Already an hour for this call. Let's see if we got any further questions online. Okay, no. And then Dr. Chen, we will conclude this call. Today, do you have any like final remarks and then we can conclude.

Yes. I thank everyone to join Pharm Medicine '25 annual report. And then we will reach out in the future and then talk to you more about our adventure and then the future success in the drug discovery and in the commercialization. Thanks.

Okay. Thanks. Thanks, Dr. Chen. Thanks, George. And investors, if you got further questions, please feel free to reach out to Har Medicine IR team. Also, you can reach out to us. Okay. Thank you again, and let's see you in the future.

Bye.

Thank you, Matthew. See you soon. Bye-bye.