Hutchison China MediTech - An emerging global biopharma
Hutchison China MediTech (HCM) has announced positive data that key late-stage asset surufatinib met the primary endpoint of PFS in non-pancreatic at the Phase III interim analysis. This translates to an earlier than expected China NDA submission (H219) and the potential launch of HCM’s first un-partnered asset (early 2021). In China, partner Lilly has launched Elunate (fruquintinib) capsules. Early sales look promising and its potential inclusion on the China NRDL later this year will be definitive to the China opportunity. However, failure of fruquintinib monotherapy in third-line NSCLC and the changes in strategy to savolitinib in RCC has negatively affected our valuation. We forecast two further product launches on the horizon in 2021/2022 (China launch of fruquintinib in gastric cancer and global launch of savolitinib in NSCLC). HHHL has completed a secondary offering of ADSs, which has reduced its holding to 51.15% (from 60.2% previously). We see this as a significant positive for HCM as it increases the free float, potentially leading to better liquidity. We value HCM at $5.6bn (£6.72/share) vs $6.5bn previously.Hutchison China MediTech is engaged in researching, developing, manufacturing and selling pharmaceuticals and healthcare products. Co. has research and development facilities and manufacturing plants in Shanghai and Guangzhou in the People's Republic of China and sells its products mainly in the PRC and Hong Kong. Co. operates two operating segments. The Innovation Platform focuses on discovering and developing therapeutics in oncology and autoimmune diseases, and the provision of research and development services. The Commercial Platform involves the manufacture, marketing and distribution of prescription and over the counter pharmaceuticals as well as consumer health products.
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.