Livzon Group Invests RMB 70.091 Million to Acquire 7.8215% Stake in Jiangsu New Element Pharma

VCBeat has learned that Livzon Group announced today that its wholly-owned subsidiary, Zhuhai Livzon Pharmaceutical Equity Investment Management Co., Ltd., will invest RMB 70,091,000 to subscribe for RMB 2,250,639 of the newly increased registered capital of Jiangsu New Element Medical Technology Co., Ltd., accounting for 7.8215% of the latter’s registered capital after the capital increase. New Element Medical develops Class 1.1 innovative drugs with global commercial value and competitiveness, with a pipeline covering metabolic diseases such as gout and NASH, as well as oncological diseases.

Jiangsu New Element Medical Technology Co., Ltd. (a Sino-foreign joint venture), founded in 2012, focuses on “independent R&D and global markets,” developing Class 1.1 innovative drugs with global commercial value and competitiveness. Its pipeline covers metabolic diseases such as gout and NASH, as well as oncology. The company’s core team members are primarily from the United States and possess extensive experience in innovative drug development. Prior to returning to China, Dr. Shi Dongfang, the company’s CEO, spent 20 years in the United States and the United Kingdom engaged in the R&D of First-in-Class innovative drugs for anti-tumor, anti-HCV, and type 2 diabetes treatments.

Jiangsu New Element Medical Technology Co., Ltd. has previously secured nearly RMB 80 million in financing and grants. Its Series A round was led by Cathay Capital, while its Series A+ round in May 2018 was invested in by Youxuan Capital and Zhongyu Capital. Reportedly, the current fundraising constitutes a Series B round amounting to RMB 150 million. Livzon Pharmaceutical Group and Cathay Capital were the initial investors in this Series B round, with additional investors joining after the holiday period.

The R&D pipeline of Atom Therapeutics is as follows:

1. ABP-671, an innovative drug for gout, received clinical trial approval from the U.S. FDA in October 2018. It has completed the Phase 1a clinical trial in the United States and is scheduled to enter three different Phase 2 clinical trials for distinct indications in both the United States and China early next year. Preliminary clinical results indicate that ABP-671 is highly effective and safe; its efficacy at a 0.5 mg dose is essentially comparable to that of benzbromarone at an 80 mg dose. Benzbromarone is currently the most efficacious gout medication on the market but carries significant hepatotoxicity and gastrointestinal toxicity.

2. ABP-6016 is scheduled to enter Phase I clinical trials in the United States in Q4 2020 for the treatment of fatty liver disease and non-alcoholic steatohepatitis (NASH), among other indications; 3. ABP-431 (First-in-Class) will enter Phase I clinical trials in the United States and China in Q4 2020 for the treatment of gastric cancer, colorectal cancer, triple-negative breast cancer, and other indications.