HUTCHMED’s clinical data presentations at the European Hematology Association (EHA) 2024 congress have provided meaningful insights into sovleplenib’s efficacy and safety profile. This is the first HUTCHMED immunology/haem-oncology asset to be filed in China, with a potential approval decision in ≥2L immune thrombocytopenia (ITP) expected late-2024. The prospect of China approvals for sovleplenib and follow-on indications for fruquintinib, as well as the first potential fruquintinib regulatory d...
Trinity Delta view: Partner Takeda has executed an impressive initial launch of Fruzaqla in the US, which provides confidence in future successful launches in Europe and Japan (once regulatory approvals are secured), and for Fruzaqla’s longer-term growth prospects with expansion to additional indications. Fruzaqla’s commercial prospects are a key contributor to HUTCHMED’s path to profitability, which is supported by the growing traction and market share capture of its China oncology products, pl...
Hutchmed has built strong R&D capabilities with three self-developed innovative small molecule oncology drugs successfully marketed in China. It focuses on exploring overseas markets and expanding the number of indications for its existing products, and actively develops combination therapies for its pipeline products with domestic biologics drugs. It maintains its oncology revenue guidance of US$450m-550m in 2023, and targets to achieve breakeven in 2025.
GREATER CHINA Sector Banking: 3Q23 results preview: Earnings growth expected to reach bottom. Asian Gems Corporate Highlights Crystal International (2232 HK)/NOT RATED/HK$2.45): Takeaways from luncheon. Hutchmed (China) (13 HK/NOT RATED/HK$26.60): Maintaining oncology revenue target of US$450m-550m in 2023. Nio Inc (9866 HK/NOT RATED/HK$68.90): Takeaways from Asian Gems Conference. Xiaomi Corp (1810 HK/BUY/HK$12.30/Target: HK$15.30): Takeaways from Asian Gems Conference. INDONESIA Asian Gems Co...
HUTCHMED’s clearly articulated strategy is delivering, with consistent clinical and commercial execution marking its continuing transition from a development stage company into a profitable commercial organisation. Growth in Oncology/ Immunology revenues, defined investment priorities, and a global partnering strategy should all contribute to achieving a FY25 breakeven target. HUTCHMED aims to expand its marketed portfolio of oncology drugs in China from three to six or seven by FY25, addressing...
16th June 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objecti...
Founded in 2000, Hutchmed has built strong R&D capabilities with three selfdeveloped innovative small molecule oncology drugs (namely Surufatinib, Fruquintinib and Savolitinib) successfully marketed in China. It collaborates with its MNC partners and carries out multi-centre global trials for its major drug assets, aiming to provide advanced treatment options and achieve its globalisation ambitions. Expecting robust revenue expansion, it targets to achieve breakeven in 2025.
KEY HIGHLIGHTS Sector Baijiu And Beer Prefer premium baijiu: Solid sales performance to drive sector re-rating. Maintain OVERWEIGHT on baijiu sector and downgrade beer sector to MARKET WEIGHT. Property Pressure on HIBOR marginally alleviated; retail momentum remains strong. Update Hansoh Pharmaceutical Group Company (3692 HK/BUY/HK$12.46/Target:HK$18.00) Continuous innovation transformation. HUTCHMED (China) (13 HK/NOT RATED/HK$20.25) An advanced small molecule drug innovator. Small/Mid Cap...
GREATER CHINA Sector Baijiu And Beer: Prefer premium baijiu: Solid sales performance to drive sector re-rating. Maintain OVERWEIGHT on baijiu sector and downgrade beer sector to MARKET WEIGHT. Property: Pressure on HIBOR marginally alleviated; retail momentum remains strong. Update Hansoh Pharmaceutical Group Company (3692 HK/BUY/HK$12.46/Target:HK$18.00): Continuous innovation transformation. HUTCHMED (China) (13 HK/NOT RATED/HK$20.25): An advanced small molecule drug innovator. Small/Mid Cap H...
HUTCHMED’s transition into a sustainably profitable global biopharma continues to gather momentum, as evidenced in FY22 results, with growing commercial traction in China and pipeline progress with key assets. Global ambitions are now being addressed with partners. Positive fruquintinib FRESCO-2 data, completion of US FDA rolling filing, and execution of a global ex-China commercial and development deal with Takeda brings first launch of a HUTCHMED product outside of China even closer. The $400m...
Trinity Delta view: Initiation of the rolling regulatory filing for fruquintinib has started as expected, potentially allowing for approval in the US for mCRC in H124e, which could come sooner if Priority Review is granted. A positive decision for fruquintinib would represent the first HUTCHMED asset to receive an ex-China approval. Under the new financially disciplined strategy, which is focused on accelerating the path to profitability, ex-China commercialisation will be primarily achieved thr...
Detailed data from the multi-regional pivotal FRESCO-2 study of fruquintinib in ≥3L mCRC (metastatic colorectal cancer) were presented as a late breaker at ESMO 2022. The trial demonstrated a statistically significant 2.6 month overall survival (OS) benefit over placebo in this heavily pre-treated and refractory patient population, comparing favourably with other agents in this setting. Secondary endpoints were also met, including progression free survival (PFS), and fruquintinib’s safety profil...
HUTCHMED has ambitious near- and medium-term growth plans, centred on its novel oncology products, to initially create a sizeable commercial organisation addressing Greater China whilst also building the appropriate infrastructure to address key global markets. The first product wave - Elunate (fruquintinib), Orpathys (savolitinib) and Sulanda (surufatinib) - are expected to post FY22 revenues of $160-$190m in China. The second and third waves of innovative programmes are progressing through dev...
Trinity Delta view: Sceptics once argued that HUTCHMED’s plans were too ambitious, however consistent delivery and professional execution has transitioned a promising discovery company into a global commercial organisation. The success of the China Oncology sales platform, now marketing two products across various indications, highlights the expected path for global development. The impressive historic success of the in-house discovery platform appears set to continue, with the creation of anoth...
Trinity Delta view: HUTCHMED’s investment case rests largely on the strength and depth of its late-stage pipeline for the China and global markets as well as the next product wave of haem-oncology assets approaching registration-intent trials. To date the in-house discovery platform has generated 11 clinical-stage assets, with three products approved and marketed in China in their first monotherapy indications; the first US approval is expected in H122. Cash of c S$1.2bn means HUTCHMED has funds...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
ASCO saw solid clinical updates on HUTCHMED’s late stage clinical/early commercial assets, Orpathys, Sulanda and Elunate, which should help inform the design of several new, mostly combination-focussed registration trials. These, plus competitor data, highlighted some potentially underappreciated strengths in relation to the global partnership with AstraZeneca on savolitinib and HUTCHMED’s strategy of exploring combinations with multiple Chinese-originated anti-PD-1 agents. A recent R&D day outl...
HUTCHMED has successfully raised c US$537m (or HK$4.17bn) through its Hong Kong IPO and global offering. The new funds enable management to execute their ambitious near- and medium-term growth plans. As well as progressing the second and third wave of innovative programmes through clinical trials, the proceeds will be used to bolster the China Oncology commercial organisation and further develop the equivalent global infrastructure. A sister note detailing the recent clinical data for the key la...
Trinity Delta view: The timing of the fund raise follows hot on the heels of data presented at the ASCO 2021 conference and updates at a recent investor event on several new late-stage programmes to be initiated which highlighted the strength and depth of HUTCHMED’s late-stage pipeline. The in-house discovery platform has generated 10 tyrosine kinase inhibitors that have progressed into the clinic: both as monotherapy and, importantly, in combinations, in China and globally. The first product wa...
Trinity Delta view: This $100m equity raise provides a useful reminder of the progress HUTCHMED is making across multiple fronts and ensures that sufficient funding is in place to maintain momentum. 2021 will see tangible signs of the value of its R&D organisation as the Oncology/Immunology commercial operations are expected to generate $110m-$130m in revenues. We see scope for significant upside potential from expected increased visibility for the three lead assets, both clinically and commerci...
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