Having raised RMB 2 billion in cumulative financing, Alebund Pharmaceuticals, a kidney disease biotech, is heading for an IPO

On May 4, Alebund Pharmaceuticals, an innovative drug company focused on the kidney disease field, once again submitted a main board listing application to the Hong Kong Stock Exchange.

Founded in 2018 in Yangzhou, Jiangsu Province, the company has focused for many years on the chronic kidney disease (CKD) field, establishing a full-spectrum pipeline covering hyperphosphatemia, IgA nephropathy, diabetic kidney disease, and polycystic kidney disease. Benefiting from its clear strategic positioning, Alebund has raised a total of RMB 2 billion in cumulative financing since its inception, with a post-investment valuation of approximately RMB 3.779 billion. Tencent, Sinolink Securities, Huagai Capital, LAV, and other well-known enterprises and institutions are among its shareholders, positioning the company as a "potential star" in the kidney disease innovation sector during the capital winter.

Facing the unmet medical needs of 790 million CKD patients globally and 120 million affected individuals in China, Alebund has adopted a strategy of full in-house research and development, global clinical development, and end-to-end integration to carve out a niche in the kidney disease sector long dominated by multinational pharmaceutical companies. The starting point of all this was a "niche" strategic choice.

In 2018, China's innovative drug market presented a landscape of "crowded popular tracks while niche tracks were left cold." Capital poured intensively into areas such as PD-1, CAR-T, and small molecule targeted therapeutics, with intensifying competition becoming evident. In contrast, the track chosen by Alebund Pharmaceuticals was, at the time, a "forgotten corner."

Data disclosed in the prospectus outline a striking contradiction: the global number of chronic kidney disease (CKD) patients reached 790 million in 2024, and is projected to increase to 940 million by 2035, of which 120 million patients were in China in 2024. This is a market as vast as oncology, yet the supply of innovation remains remarkably scarce. In 2024, newly added clinical pipelines for CKD accounted for less than 2% of the total global new clinical pipelines, while the spotlighted oncology field accounted for over 40%.

In terms of market opportunity, innovation in the kidney disease field has been nearly stagnant for decades. Take hyperphosphatemia as an example. It is one of the most common complications of CKD, affecting approximately 95% of dialysis-dependent CKD patients. Yet existing therapies remain stuck in the era of phosphate binders from decades ago. Although products such as lanthanum carbonate and sevelamer have been on the market for many years, they are widely associated with significant gastrointestinal side effects, high pill burden, and systemic absorption. This therapeutic stagnation is directly reflected in clinical outcomes: 76% of dialysis patients in China and 52% in the United States have uncontrolled serum phosphorus levels.

Dr. Gavin Guoyao Xia and Dr. Jin Tian identified the market opportunities mentioned above. They abandoned the popular tracks and focused on innovative drug development for kidney diseases, founding Alebund Pharmaceuticals in Yangzhou in 2018. Given the industry environment at the time, this was a relatively niche decision. While most Chinese biotech companies flocked to popular areas such as cancer immunotherapy and ADCs, attempting to claim a share in the red ocean, Alebund chose a "narrow gate" that fewer people took. The prospectus cites data from CIC Consulting to demonstrate the value of this choice: Alebund has the broadest coverage of kidney disease indications among its candidate drug pipelines globally. To some extent, this breadth is precisely the best reward for the word "focus."

Having chosen this uncrowded niche track, Alebund did not proceed with a haphazard approach. Instead, it built its core competitiveness through a precise product portfolio, which has become the key to breaking the monopoly of multinational pharmaceutical companies.

Alebund Pharmaceuticals' core competitiveness is concentrated in a product portfolio of eight candidates, with indications covering four core areas of kidney disease, all of which are potential BIC/FIC candidates, making the company unique among global kidney disease biotechs.

In October 2023, Alebund acquired the exclusive commercial rights in China for Roche's long-acting erythropoietin MIRCERA® (AP601). This global first-in-class long-acting erythropoietin (EPO), administered once monthly, is indicated for the treatment of CKD-related anemia. After being included in the National Reimbursement Drug List (NRDL) in 2024, it experienced rapid uptake, contributing RMB 30.556 million in revenue in 2025, accounting for 100% of total revenue.

It is worth noting that this acquisition was not a mere distribution arrangement but rather a channel-building strategy for Alebund. Through the promotion of MIRCERA®, the company has built a professional nephrology sales team, covering over 300 top-tier hospitals in China, and has established comprehensive channel resources encompassing key opinion leaders, hospitals, and reimbursement mechanisms in the kidney disease field, paving the way for the subsequent launch of its proprietary products.

AP301, Alebund's core product candidate, is indicated for the treatment of CKD-related hyperphosphatemia. In 2021, Alebund acquired global exclusive rights to AP301 from Vidasym with no future royalty obligations. A Phase III clinical trial in China showed that AP301 achieved a serum phosphorus reduction of 2.22 mg/dL at 12 weeks, superior to sevelamer carbonate's 2.17 mg/dL, and a 52-week long-term response rate of 66.7%, higher than the competitor's 58.6%. Its characteristics—no need for chewing, low volume expansion, and lack of systemic absorption—address the key pain points of existing phosphate binders, namely significant gastrointestinal side effects and high pill burden.

Currently, there are few non-calcium phosphate-lowering molecules approved globally. Commonly approved drugs such as sevelamer carbonate (Sanofi) and lanthanum carbonate (Takeda) were launched over a decade ago. AP301 is the only domestic innovative drug candidate in China that has entered Phase III clinical development, directly competing with multinational giants including Sanofi, Takeda, and Astellas. In November 2025, AP301 completed its Phase III clinical trial in China. The Company plans to submit a New Drug Application (NDA) in China in the second quarter of 2026, while concurrently pursuing a global Phase III clinical trial in both China and the United States. It expects to file for marketing authorization with the FDA in the third quarter of 2027, positioning AP301 as a potential first Chinese domestic innovative drug for hyperphosphatemia to enter the global market.

AP306 is the world's first and only clinical-stage pan-phosphate transporter inhibitor, also indicated for the treatment of hyperphosphatemia. It received Breakthrough Therapy Designation from the NMPA in 2024. Phase II clinical data demonstrated a serum phosphorus control rate of nearly 95% after 7 to 8 weeks of monotherapy, compared to approximately 50% with traditional phosphate binders. AP306 also showed a significantly lower daily pill burden and a discontinuation rate of less than 5%, highlighting its favorable safety profile. Alebund holds global development, manufacturing, and commercialization rights to AP306. The company plans to submit a NDA in China directly based on global Phase IIb data, potentially bypassing a local Phase III trial and thereby shortening the time to market.

AP301 and AP306 offer complementary profiles across different patient scenarios: AP301 is designed to lower serum phosphorus levels by binding to phosphate in the intestine. It is suitable for the majority of hyperphosphatemia patients, with a focus on cost-effectiveness and broad foundational coverage, making it appropriate for the general patient population. AP306, on the other hand, is intended for patients with refractory hyperphosphatemia who are intolerant to or have insufficient response to traditional phosphate binders (such as sevelamer and lanthanum carbonate). It focuses on providing a more potent and safer treatment option, targeting the premium or special-needs segment of the market. From a functional positioning perspective, AP301 and AP306 form a complementary pattern of "foundational therapy plus refractory therapy," collectively serving different segments of the hyperphosphatemia market.

Beyond complications therapies, Alebund is developing two additional pipeline candidates to supplement its core offerings. AP303, a dual PPAR agonist intended to slow the progression of CKD, covers indications including diabetic kidney disease, IgA nephropathy, and polycystic kidney disease. It has received Orphan Drug Designation from the FDA. A global Phase II trial is planned to commence in the third quarter of 2026. AP308 is a novel recombinant IgA protease designed to clear IgA deposits in the kidney, aiming for functional cure of IgA nephropathy. The Company plans to submit IND applications in both China and the United States in the third quarter of 2026. AP308 is currently the only IgA protease drug candidate globally that has entered clinical development.

Overall, at a time when the kidney disease drug market is dominated by multinational pharmaceutical corporations, Alebund is breaking through with three key competitive advantages. In the hyperphosphatemia field, AP301 and AP306 are the only late-stage domestic innovative drug candidates in China, providing a market window of three to five years. In IgA nephropathy and diabetic kidney disease, two proprietary product candidates are addressing clinical gaps. Compared with domestic peers in China, Alebund's full-spectrum pipeline, global footprint, and end-to-end capabilities create a differentiated competitive edge.

A clear pipeline advantage and a well-defined path to market have naturally attracted the attention and support of top-tier capital. Since its inception, Alebund Pharmaceuticals has completed seven financing rounds, raising a total of approximately RMB 2 billion, with a post-investment valuation reaching RMB 3.779 billion. Behind this financing achievement lies the collective backing of leading institutions such as Tencent, Sinolink Securities, Huagai Capital, and LAV.

Prior to the IPO, Alebund's equity structure is clear and stable. The founding concert party group, consisting of Dr. Gavin Guoyao Xia, Dr. Jin Tian, and others, holds an aggregate of 24.50% through relevant entities, making it the single largest shareholder group with firm control over the company. Tencent's industrial ecosystem has become the second-largest shareholder with an 11.732% stake, representing the only publicly disclosed heavy investment by Tencent in the innovative drug space for kidney disease, aligning with its healthcare strategy of "AI plus innovative drugs."

It is worth noting that Tencent's entry is also a notable endorsement for Alebund. Over the past decade, Tencent has shifted from focusing on internet healthcare traffic to deeper engagement in the innovative drug industry, identifying the kidney disease field as a "long-term value pool." Unlike financial investors seeking short-term arbitrage, Tencent, as industrial capital, provides Alebund with synergistic support in technology, channels, and ecosystem, facilitating its global clinical development and commercial rollout.

In addition, Sinolink Securities holds a 9.6166% stake, LAV USD holds 8.3386%, and Loyal Valley Capital holds 6.4023%. Together, they form a capital matrix of leading VC/PE firms in the healthcare sector, providing resource support for Alebund's global clinical development and commercialization efforts.

The continuous injection of capital has provided strong support for Alebund's research and development as well as its end-to-end layout. However, as a pre-revenue biotech company, its financial statements objectively reflect the typical growing pains of an innovative drug company during its development. Behind the stark contrast between revenue and losses lies the company's strategic investment in long-term development.

In 2024, Alebund's operating revenue was RMB 6.525 million. In 2025, it surged by 368.3% year-on-year to RMB 30.556 million. Gross profit increased from RMB 2.385 million to RMB 13.446 million, while gross margin rose from 36.5% to 44.0%, an increase of 7.5 percentage points.

In contrast to the surge in revenue, losses continued to widen. The net loss was RMB 335 million in 2024 and expanded to RMB 752 million in 2025, representing a year-on-year increase of 124.3%. Adjusted net loss increased from RMB 286 million to RMB 380 million, an increase of 33.2%. The primary driver of the widening loss was a substantial increase in research and development expenditures. R&D expenses reached RMB 373 million in 2025, accounting for 1,221% of total revenue. These R&D funds were primarily used for the global Phase III trial of AP301, the Phase II trial of AP306, preclinical research for AP303 and AP308, as well as the construction of the Yangzhou manufacturing facility.

Biologics innovation is inherently capital-intensive. Global multicenter clinical trials for kidney disease drugs, manufacturing facility construction, and patent filings all require substantial financial support. Furthermore, as of December 31, 2025, Alebund had cash and cash equivalents of RMB 358.3 million. Together with time deposits with original maturities exceeding three months of RMB 27.375 million and financial assets at fair value through profit or loss of RMB 145.5 million, the company's broad cash reserves totaled approximately RMB 531 million. This robust cash position serves as an important guarantee for Alebund to continue advancing its research, development, and commercialization efforts.

It is worth noting that these "losses" also represent strategic investment. R&D expenditures have gradually translated into global clinical data, patent barriers, and manufacturing capabilities. Once AP301 and AP306 receive marketing approval, they are expected to rapidly generate significant revenue, allowing losses to narrow progressively until profitability is achieved. Additionally, Alebund's net current liabilities improved from negative RMB 1.555 billion in 2024 to positive RMB 319 million in 2025. Furthermore, the Yangzhou manufacturing facility has been completed, with an annual designed capacity of 200 tons, providing assurance for commercial-scale production and completing the company's end-to-end "R&D plus manufacturing plus commercialization" layout.

Financial pressures coexist with the long-term potential of the pipeline. Alebund's IPO fundraising serves as a critical bridge connecting the present with future development. Behind this lies the broader picture of the golden development opportunity in the innovative kidney disease drug field.

From a long-term perspective, Alebund's IPO represents not only a single company's breakthrough but also a preview of the shifting landscape in the global innovative kidney disease drug field. Industry trends indicate that the global chronic kidney disease drug market is poised for explosive growth, projected to rise from USD 222.6 billion in 2024 to USD 503.9 billion by 2035.

The drivers of this surge include an increasing patient population due to an aging society, as well as breakthroughs in innovative technologies. In China, favorable policies are also being rolled out. The "Healthy China 2030" initiative has incorporated CKD management into its national plan. Moreover, the National Health Commission has, for the first time, included the serum phosphorus control rate as a national healthcare quality and safety improvement goal. This top-down attention provides a promising foundation for companies like Alebund.

Over the next two years, if Alebund's AP301 successfully submits its NDA and receives approval as planned, it is expected to become one of the world's first new-generation iron-based phosphate binders, directly challenging the dominant position of sevelamer. The other candidate, AP306, as a global first-in-class pan-phosphate transporter inhibitor, has the potential to redefine the industry standard for phosphorus-lowering therapy. We look forward to seeing this Chinese biotech company, deeply focused on the kidney disease field, reshape the global kidney disease drug market landscape with original innovation, bringing China's innovative kidney disease drugs to better serve patients around the world.