According to the CITIC Securities Research Report, the 2024 ADA conference revealed positive clinical data on several innovative GLP-1 RA drugs produced in China, and the valuation of the corresponding products is expected to gradually increase. However, in response to the current GLP-1 RA muscle loss phenomenon, fat loss and muscle building are becoming an important iterative direction. The initial curative effect of regenerative Activin A and Myostatin antibody combination therapy is positive. In the real world, GLP-1 RA has strong drug viscosity. The 12-month viscosity rate for diabetics in the US reached 63.2%, which is higher than the historical average drug viscosity rate for diabetes. It is expected to drive a continuous increase in market size and drive a significant increase in demand for APIs. In summary, we continue to be optimistic about the layout of GLP-1 innovative drugs and domestic companies in the supply chain, and maintain the “better than the market” rating of the pharmaceutical and innovation industry.