Good news for gout patients: "New Element Pharmaceuticals-B" has submitted its listing application to the Hong Kong Stock Exchange, with CITIC Securities as the exclusive sponsor.

Source: Hu Report

On March 20, 2026, New Element Pharmaceuticals submitted its second prospectus to the Hong Kong Stock Exchange, proposing a listing on the Main Board, with CITIC Securities as the sole sponsor. The company previously filed an listing application on September 15, 2025.

The company is a biotechnology firm focused on developing therapies for metabolic, inflammatory, and cardiovascular diseases. In 2024, revenue was 8 million RMB, with a net loss of 434 million RMB, and R&D expenses of 338 million RMB; in 2025, revenue was 5 million RMB, with a net loss of 534 million RMB, and R&D expenses of 180 million RMB.

The company specializes in developing therapies for metabolic, inflammatory, and cardiovascular diseases. As of the last practical date, its pipeline includes a core product, ABP-671; another clinical-stage candidate, ABP-745; and several preclinical candidates such as AT6616, ABP-6016, and ABP-6118.

ABP-671 is an internally developed small-molecule URAT1 (urate transporter 1) inhibitor designed as a first-line treatment for gout.

The company’s core product, ABP-671, aims to effectively lower serum uric acid (sUA) levels, typically below 6 mg/dL, and for many gout patients, even below 5 mg/dL or 4 mg/dL. This helps dissolve gout stones, reduce urate crystal burden, decrease the frequency of acute attacks, and lower the risk of hyperuricemia-related complications, while maintaining good safety and tolerability.

ABP-671, independently developed by the company, is a new generation URAT1 inhibitor with a rational chemical structure that avoids the benzofuran scaffold common in traditional drugs like benzbromarone. This design prevents the formation of toxic metabolites associated with liver damage, minimizing hepatotoxicity risk while maintaining effective uric acid reduction. Additionally, ABP-671 has higher target selectivity and more impressive uric acid-lowering efficacy.

Currently, ABP-671 is undergoing Phase 2b/3 clinical trials for gout treatment in the US and China, with the potential to become a leading Class 1 innovative URAT1 inhibitor targeting the first-line market.

The company’s self-developed ABP-745 is a small-molecule drug with good efficacy and safety for acute gout treatment, aiming to address the long-standing lack of effective and safer drugs in this field.

ABP-745 has successfully completed Phase 1 clinical trials in the US and has advanced to multi-regional Phase 2 trials in the US, Australia, and China (MRCT).

In addition, the company is developing a diversified pipeline of preclinical assets mainly targeting major medical needs in cardiac metabolism and inflammatory diseases, including AT6616 (for atrial fibrillation), ABP-6016 (for metabolic dysfunction-related fatty liver disease), and ABP-6118 (for chronic kidney disease associated with hyperuricemia).

Financial Performance

As of December 31, 2025, over two fiscal years:

The company has not yet generated commercial revenue, mainly due to reduced government grants related to the clinical progress of ABP-671 and decreased interest income from bank balances and fixed deposits caused by lower bank balances and the interest rate environment.

In 2024, revenue was 8 million RMB, R&D expenses were 338 million RMB, with a net loss of 434 million RMB; in 2025, revenue was 5 million RMB, R&D expenses were 180 million RMB, with a net loss of 534 million RMB.

Industry Overview

According to Frost & Sullivan, the global gout drug market declined from $3.1 billion in 2019 to $2.7 billion in 2024, mainly due to safety concerns over febuxostat and declining sales volume caused by rising drug prices. However, it is expected to rebound significantly, reaching $9.3 billion by 2033, with a CAGR of 14.9% from 2024 to 2033. The Chinese gout drug market also contracted from $500 million in 2019 to $300 million in 2024, mainly due to drug procurement policies that suppressed prices.

The global competition in gout treatment is increasingly focused on the development of URAT1 inhibitors. As of the last practical date, 18 candidate drugs for gout are in development and have entered clinical trials in the US, EU, and China. Among these, ABP-671 is one of the fastest progressing candidates both globally and in China, with real-world data indicating potential superior clinical performance.

Comparable Companies

Industry IPO comparables:

Kangyuan Pharmaceutical (600557.SH), Yipin Hong (300723.SZ).

Board and Senior Management

The company’s board consists of nine directors, including two executive directors, four non-executive directors, and three independent non-executive directors.

Major Shareholders

Before listing in Hong Kong:

Dr. Shi Dongfang holds 29.4%, making him the single largest shareholder;

Caitai Capital holds 13.9%;

Changzhou Xinshi holds 8.8%;

Lijun Group (000513.SZ) holds 5.9%;

Xindongli holds 5.2%;

Heda Fund holds 4.8%;

HSG Venture holds 4.0%;

Other minority shareholders hold a total of 26.7%.

Funding History

The company has undergone multiple financing rounds prior to listing. In the latest D+ round in October 2025, the post-investment valuation was approximately 3.6 billion RMB.

Intermediary Team

According to LiveReport big data, New Element Pharmaceuticals has a team of 8 intermediaries, including 1 sponsor, with nearly 10 projects needing improvement; the company’s legal team consists of 2 firms, with overall project performance considered good. Overall, the intermediary team’s performance is acceptable.

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