$110m raised through ADS public offer
Lighthouse | 23 January 2020
Trinity Delta view: This fund raise has been well flagged and should be welcomed. The original plan outlined in April 2019 for an additional listing in Hong Kong to raise equity finance and sell down CK Hutchison’s stake (held through its HHHL subsidiary), to below the strategically important 50%, was one of several future funding options open to Chi-Med. These also included the prospect of enhanced revenues from Elunate following NRDL inclusion and near-term China approvals/launches, plus possible non-dilutive finance from non-core asset divestment. The subsequent ADS placings by CK Hutchison in June and September 2019 removed a known overhang and allowed Chi-Med to time this offer to suit its needs. Chi-Med has a sizeable clinical pipeline, generating multiple development opportunities. The funds will help expedite progress, notably with the programmes that have performed better than originally expected. We currently value Chi-Med at $5.14bn ($38.55/ADS) or £3.95bn (£5.93/share) pre-money, although we have flagged that recent positive developments will likely result in a review of our rNPV based model. We will also be updating our model for this raise.
23 January 2020
|Price (US ADS) (UK share)||$25.69|
Hutchison China MediTech is a Hong Kong headquartered biopharma focused on discovering, developing and commercializing innovative targeted therapeutics and immunotherapies for the treatment of cancer and autoimmune diseases. It has a diverse pipeline of first-in-class/best-in-class selective oral tyrosine kinase inhibitors in development for the China and global markets.
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