On August 15, Innogen, a pharmaceutical company focused on glucagon-like peptide-1 (GLP-1) therapies, debuted on the Hong Kong Stock Exchange. The company’s shares surged as much as 300% intraday and closed up 200%, pushing its market capitalization to RMB 26 billion (USD 3.6 billion). A day earlier, its shares rose more than 270% on the gray market, while the public offering was oversubscribed 5,364 times, surpassing even Mixue Bingcheng’s debut.
Interest in GLP-1 therapies has surged in recent years, driven by blockbuster drugs like semaglutide and tirzepatide. Several Chinese firms, including Jiuyuan Gene Engineering and PegBio, have sought listings on the back of biosimilars or slightly modified versions of these originator compounds, often before even securing approvals.
Innogen, however, brings an approved product to market. Earlier this year, it launched its proprietary GLP-1 drug for adult Type 2 diabetes, efsubaglutide alfa (marketed as Diabegone). By the end of May, Diabegone had generated nearly RMB 40 million (USD 5.6 million) in revenue. The company is also pursuing clinical trials for additional indications, including weight loss and metabolic dysfunction-associated steatohepatitis.
While strong fundamentals underpin investor confidence, Innogen’s market reception also reflects broader optimism surrounding the biopharmaceutical sector and growing demand for domestically developed GLP-1 drugs. Together, these factors have shaped a favorable narrative around the company’s debut.
Targeting a longer-acting GLP-1 niche
In the competitive GLP-1 space, key differentiators include dosing frequency, efficacy, and safety. With leading products already well established, new entrants must demonstrate clear advantages along at least one of these dimensions.
Innogen’s edge lies in duration. Long-acting GLP-1 therapies, defined as drugs with effects lasting more than 24 hours per dose, have taken over the market. Frost & Sullivan data indicates that, as of 2024, long-acting GLP-1 drugs comprised 96.5% of the global market and 86.9% of the Chinese market.
Innogen’s prospectus notes that efsubaglutide alfa has a half-life of 204 hours, surpassing semaglutide (168 hours), tirzepatide (120 hours), and dulaglutide (112 hours). While its approved glucose-lowering regimen involves weekly dosing, like its peers, the extended half-life suggests potential for even less frequent administration, representing an appealing feature for weight loss applications.
Still, experts emphasize that efficacy is the key benchmark for obesity indications. At the end of last year, efsubaglutide alfa completed a Phase 2a trial for obesity. According to company disclosures, patients receiving 20 milligrams over four weeks experienced an average weight reduction of 8.13% from baseline, compared to 0.79% in the placebo group.
A Phase 2b and 3 clinical program began in March, with results expected by the end of next year. More robust efficacy data will likely emerge during this period.
For comparison, Eli Lilly’s tirzepatide achieved weight reductions of 20.9% and 19.5% at 72 weeks for its 15-mg and 10-mg doses, respectively, in a Phase 3 trial. Novo Nordisk recently reported semaglutide-induced weight losses of 17.5% and 20.7% at 2.4 mg and 7.2 mg doses, respectively, over the same timeframe.
Another area drawing attention is muscle preservation. Weight loss often results in muscle loss, which can reduce basal metabolic rate and increase the risk of rebound weight gain. As a result, companies are emphasizing fat-selective effects in clinical trials.
At this year’s American Diabetes Association (ADA) meeting, Innogen presented early cohort data showing participants lost an average of 8.6 kilograms after four weeks, equivalent to an 8.6% reduction in body weight. Fat mass decreased by 14.79%, while muscle loss was minimal. The company interpreted the results as evidence of preferential fat reduction, a potentially valuable feature in the crowded obesity drug market.
Can Innogen reach the top tier?
The leading players in GLP-1–based weight loss drugs are multinational pharmaceutical companies. In China, domestic challengers such as Innovent Biologics, Hengrui Pharmaceuticals, and CSPC Pharmaceutical Group have years of commercialization experience that Innogen lacks.
According to its IPO prospectus, Innogen has assembled a 15-person sales team for efsubaglutide alfa, with an average of 20 years of experience in metabolic disease. The company reported RMB 37.538 million (USD 5.26 million) in sales expenses during the first five months of 2025.
Still, scaling sales in hospitals remains difficult. Tighter admission protocols and product category limits make it harder to gain shelf space within institutional settings. As a result, Innogen has prioritized off-hospital distribution, even for a diabetes product typically dispensed through hospital channels.
Its prospectus highlights a focus on e-commerce and internet hospital platforms. After Diabegone’s February launch, search volume for the product rose 40% on a major e-commerce platform in its second month. Innogen also told 36Kr that during this year’s 618 shopping festival, Diabegone ranked seventh among endocrine medicines and third among GLP-1 products on JD.com and Alibaba.
As of May, cumulative revenue from Diabegone reached RMB 38.144 million (USD 5.34 million). These early sales will serve as a testbed for the eventual rollout of weight loss indications.
Still, a shift toward non-hospital distribution is part of a broader industry trend. After approval, semaglutide and tirzepatide quickly became available on JD.com, Meituan, and Alibaba. Domestically, Huadong Medicine’s liraglutide injection is stocked in nearly 10,000 cold chain retail outlets, while Benemae’s benarutide is distributed through direct-to-patient pharmacies and branded retail chains.
Global sales of GLP-1 drugs remain substantial. In the first half of the year, semaglutide and tirzepatide generated USD 16.6 billion and USD 14.734 billion, respectively. Yet sentiment has cooled. Novo Nordisk recently lowered its full-year forecast, and Eli Lilly’s data releases fell short of some investor expectations. Both companies’ share prices have returned to 2023 levels. Meanwhile, Pfizer has exited the GLP-1 space altogether, citing intensifying competition.
One US study found that more than 70% of GLP-1 users discontinued treatment within two years. Access and dosing convenience are commonly cited as reasons for nonadherence.
Whether efsubaglutide alfa’s extended half-life will translate into long-term commercial success remains to be seen. For now, Innogen appears well positioned to put that hypothesis to the test.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Hu Xiangyun for 36Kr.