Edison Issues Update on Hutchison China MediTech (HCM)

LONDON, UK / ACCESSWIRE / June 13, 2017 / At ASCO, Hutchison China MediTech (NASDAQ: HCM) presented detailed Phase III trial results for one of its leading assets, fruquintinib (third-line colorectal cancer). Full data from the China-based FRESCO study demonstrated statistically meaningful improvements in both overall and progression-free survival while reinforcing the safety profile of the drug (no liver toxicity). This is the first full Phase III data readout from HCM and further validates its strategy of creating next-generation selective tyrosine kinase inhibitors (TKIs). HCM’s (together with partner Lilly) NDA to the China FDA has been accepted (Lilly will pay HCM a $4.5m milestone payment) with a launch potentially now in 2018. We maintain our valuation of $2.7bn.

Our SOTP valuation remains unchanged at $2.7bn (£36.1/share). IP is valued at $1,948.6m and placing the commercial platform’s (CP) 2016e share of net profit on a 23.6x rating gives $788.8m (1,040p/share). Adding December 2016 net cash and netting out unallocated costs results in a value of $2.7bn. Please see our recent note Future stars are aligning for a detailed description of valuation and financials.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisoninvestmentresearch.com

About Edison: 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, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Dr Susie Jana, +44 (0)20 3077 5700
Dr Daniel Wilkinson, +44 (0)20 3077 5734
healthcare@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn https://www.linkedin.com/company/edison-investment-research
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv

SOURCE: Edison

ReleaseID: 465663