On November 22, Gelonhui | Hualing Medicine announced that on November 21, the company's board of directors had sent a written notice to Bayer, indicating that starting from January 1, 2025, Hualing Shanghai will take back its commercialization responsibilities in China for the first-line treatment of type 2 diabetes with the glucose kinase activator Dorzagliatin (Dorzagliatin tablets). To support the continuous commercial sales of Dorzagliatin in China, the company will establish a marketing team or seek other potential partners for the commercialization of Dorzagliatin in China. Previously, the two parties signed a related exclusive promotion service agreement on August 17, 2020, with Bayer obtaining the exclusive commercialization rights of Dorzagliatin in China. Several milestones have been achieved, including the approval of Dorzagliatin sales in China, inclusion in the national medical insurance drug list, and inclusion in the "China Diabetes Prevention and Treatment Guidelines (2024 Edition)". Hualing Medicine has received a total of 1.5 billion yuan in milestone payments from Bayer, which are non-refundable. It is reported that the milestone payments will be accounted for next year, and it is expected that Hualing Medicine will have a great opportunity to turn losses into profits next year. Hualing stated that the company will use the above payment to accelerate the production and sales of Dorzagliatin in China and expand overseas business. In addition to establishing a marketing team, they may also seek other potential partners, possibly simultaneously, to accelerate the expansion of Dorzagliatin in the Chinese market and ensure continuous medication for patients. Therefore, Hualing Medicine may form a comprehensive value chain of "research, production, and sales". In the nearly a year since Dorzagliatin's inclusion in medical insurance, a good hospital distribution channel has been established in China, currently covering more than 2100 hospitals and over 2900 pharmacies, especially in Beijing, Tianjin, Shanghai, and other areas where hospital coverage is denser. The company stated that they will first establish a core sales team through internal transfers and external recruitment to ensure the sales work of 500 core hospitals, with the sales from these 500 hospitals currently accounting for 80% of the total Dorzagliatin sales, and overall sales next year are not expected to be greatly affected. With the increase in medical insurance coverage and further penetration of sales channels, the company is confident in the future sales prospects. Building on the basis of the 1.5 billion milestone payment from Bayer, the company strives to enter a stable profit cycle in the next two years through overseas licensing and sales growth.