Due to the large population of diabetes patients and the huge amount of drugs used, data in 2014 show that the diabetes drug market is the second largest drug market in the world, with a market size of 63.6 billion U.S. dollars, accounting for approximately 6.8% of the global drug market. The details are as follows:

In terms of the scale of the domestic diabetes market, according to the monitoring of Zhongkang CMH, the domestic diabetes drug market reached 41.3 billion yuan in 2015, a year-on-year increase of 6.7%. Among them, the market size of insulin and its analogues was as high as 17.6 billion yuan, accounting for 42.6%, oral hypoglycemic drugs accounted for about 56.6% of the market share of diabetes drugs, and the market size reached 23.36 billion yuan, an increase of 8.8% year-on-year.

This is only the existing market. In fact, among the 100 million diabetic patients in my country, IDF predicts that if there is no intervention, the number of patients in China will rise to 154 million. According to the conservative estimation of the Guosen Securities Institute of Economics, the number of patients in my country will increase to 154 million. The theoretical space for the market size of diabetes drugs is at least close to 100 billion yuan.

As far as GLP-1 receptor agonist anti-diabetic drugs are concerned, due to their short time to market, the overall market share is not very high, but it shows a very strong growth trend. In 2016, there were 6 GLP-1 receptor agonist drugs on the market, with a total sales of 4.9 billion U.S. dollars, an increase of 25% compared with 2015, which became the biggest driving force for the expansion of the diabetes market. (Biopharmaceutical Editor-2016 Global Diabetes Market Research Report)

Therefore, judging from the current market share in a narrow sense, the current market size of GLP-1 antidiabetic drugs is the most segmented market that the company's E2HSA drugs can occupy. From the perspective of the development process of anti-diabetic drugs, GLP-1 analogue drugs represent the new trend of diabetes drugs. In the future, the use rate of drugs will continue to increase, and the market share will continue to increase. In the future, other types of oral drugs and insulin injection drugs will continue to grow in the market. The share will definitely be transferred to GLP-1 analog drugs. The entire domestic early, middle, and late diabetes patients belong to the target market of E2HSA new drugs.