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Data from early stage surufatinib trials was presented at the American Academy of Cancer Research (AACR) 2020 virtual meeting. Preliminary Phase I data of surufatinib in combination with PD-1 inhibitor toripalimab indicated the combination was safe, well-tolerated, and had encouraging anti-tumour activity. In the 29/30 evaluable patients (April 10, 2020 cut off) the overall response rate (ORR) was 34.5% (one complete response, nine partial responses) with a disease control rate (DCR) of 79.3%. For patients with neuroendocrine neoplasms (NEN, n=21), ORR was 33.3% (one CR, five PR, one unconfirmed PR) and DCR, 80.9%. Separately, a second presentation highlighted similar safety/toxicity and PK profiles between Chinese and US patients in the respective Phase I/II surufatinib monotherapy studies. Subject to regulatory approval, in H220 Hutchison China MediTech (Chi-Med) intends to both launch surufatinib monotherapy in its first indication in China and to embark on global pivotal trials. Ahead of these catalysts, our valuation is £5.08/share or $32.99/ADS.
Year-end: December 31 | 2018 | 2019 | 2020E | 2021E |
Sales (US$m) | 214.1 | 204.9 | 210.3 | 274.2 |
Adj. PBT (US$m) | (86.7) | (141.1) | (202.6) | (190.3) |
Net Income (US$m) | (71.3) | (103.7) | (166.5) | (151.1) |
Earnings per ADS (US$) | (0.57) | (0.80) | (1.22) | (1.11) |
Cash (US$m) | 301.1 | 217.2 | 145.9 | 197.0* |
Adj. EBITDA (US$m) | (69.7) | (100.7) | (157.1) | (133.5) |
Update
30 April 2020
Price (UK share) (US ADS) | 331p $21.95 |
Market Cap   | £2.29bn $3.03bn |
Enterprise Value   | £2.05bn $2.73bn |
Shares in issue (shares) (ADS) | 690.6m 138.1m |
12-month range   | 249p-478p $14.74-$30.66 |
Free float | 38.5% |
Primary exchange   | AIM NASDAQ |
Sector | Healthcare |
Company Code   | HCM.L HCM |
Corporate client | Yes |
Company description
Hutchison China MediTech is a Hong Kong headquartered biopharma focused on discovering, developing, and commercialising innovative targeted therapeutics and immunotherapies to treat cancer and autoimmune disease. 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.
Analysts
Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043
Franc Gregori
fgregori@trinitydelta.org
+44 (0) 20 3637 5041
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