Core Viewpoint - Hangzhou New Element Pharmaceutical Co., Ltd. is seeking an IPO on the Hong Kong Stock Exchange, focusing on innovative drugs for gout, but currently lacks revenue and has incurred significant losses [2][4]. Financial Performance - The company reported net losses of RMB 97 million, RMB 434 million, and RMB 165 million for the years 2023, 2024, and the first half of 2025, respectively, totaling nearly RMB 697 million in losses during the reporting period [2][4]. - Revenue during the same period was RMB 11.18 million, RMB 7.718 million, and RMB 1.813 million, primarily from other income sources such as government subsidies [4][5]. - As of June 30, 2025, the total accumulated loss was RMB 462 million, with over RMB 1 billion burned since the company's inception in 2012 [4][5]. Research and Development - R&D expenses were significant, amounting to RMB 177 million, RMB 338 million, and RMB 162 million for the years 2023, 2024, and the first half of 2025, respectively, representing a high percentage of the company's losses [5]. - The core product, ABP-671, is currently in clinical trials but has not yet entered Phase 3, with competition from other companies developing similar URAT1 inhibitors [2][7][10]. Market Potential - The global market for gout and hyperuricemia treatments is projected to grow from USD 3.2 billion in 2024 to USD 10.7 billion by 2033, with a compound annual growth rate of 14.2% [7]. - The number of hyperuricemia patients worldwide is expected to increase from approximately 1.1418 billion in 2024 to 1.3595 billion by 2033 [7]. Competitive Landscape - Several competitors are advancing in the development of URAT1 inhibitors, including products from companies like Hengrui Medicine and Yipin Pharmaceutical, which are already in Phase 3 clinical trials [10][11]. - ABP-671 is positioned as a potential first-in-class URAT1 inhibitor, targeting the treatment of gout and hyperuricemia with a focus on safety [7][10].