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What is the commercialization strategy behind AI·New Element Pharmaceuticals’ high R&D investment?

Source | Times Business Research Institute

Author | Intern Chen Jiajie

Editor | Zheng Lin

On March 20, 2026, Hangzhou New Element Pharmaceuticals Co., Ltd. - B (hereinafter referred to as “New Element Pharmaceuticals”) once again submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with CITIC Securities as the exclusive sponsor.

Financial data in the prospectus show that New Element Pharmaceuticals is still in a high-investment phase. From 2024 to 2025, the company has no product commercialization revenue. Its income mainly comes from government grants, amounting to 7.72 million yuan and 4.82 million yuan respectively. During the same period, net losses were 435 million yuan and 534 million yuan, primarily due to high R&D costs. R&D expenditures for 2024–2025 were 338 million yuan and 180 million yuan, with the core product ABP-671 accounting for 83.9% and 66.0% of these costs, respectively.

The prospectus indicates that New Element Pharmaceuticals’ core business model is discovering and developing innovative therapies for metabolic, inflammatory, and cardiovascular diseases to meet medical needs. Its key product, ABP-671, is a new generation URAT1 inhibitor designed to avoid the hepatotoxicity risks associated with traditional drugs. It is currently conducting phase 2b/3 clinical trials for gout in China, the US, and other regions. According to the prospectus, ABP-671 has demonstrated good safety features, with no hepatotoxicity signals observed in early clinical trials. Another clinical-stage product, ABP-745, an anti-inflammatory drug for acute gout treatment, has advanced to phase 2 multi-regional clinical trials in the US, Australia, and China. The company also has several preclinical candidates targeting atrial fibrillation and metabolic dysfunction-related fatty liver disease (MASH).

As a biotech company still in clinical development without any products on the market, New Element Pharmaceuticals faces typical biotech risks, including ongoing massive R&D investments leading to losses, potential failure or delays in core product clinical development, dependence on third-party partners, and future regulatory approval and commercialization uncertainties. The company reported net current liabilities and net debt at the end of the reporting period, and its continued operations depend on successful equity financing and future product commercialization.

The listing application of New Element Pharmaceuticals has drawn market attention to the gout treatment sector, which has clear unmet clinical needs. If successfully listed on the Hong Kong stock market, it will provide crucial funding to advance key clinical trials and expand its pipeline. The subsequent clinical data performance and regulatory progress are worth watching.

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