Baring Private Equity Asia invests $100m

Lighthouse | 8 April 2021

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  • Baring Private Equity Asia (BPEA) has invested $100m in HUTCHMED (Hutchison China MediTech) via a private placement. The new shares, in the form of 3.28m ADS (each equivalent to five ordinary shares), are priced at $30.50 per ADS, a 7% premium over the prior close. HUTCHMED will receive the full proceeds of the placing, which will be employed for the continued development of its clinical pipeline and building the commercial infrastructure both in China and globally.
  • BPEA was founded in 1997 and is one of the largest private alternative investment firms in Asia, with US$23 billion of assets under management. It specialises in providing growth capital for for expansion or acquisition, with a particular focus on the Asia Pacific region. BPEA currently has 39 portfolio companies and takes an active interest in supporting long-term growth.
  • The impressive success of the in-house discovery platform has generated 10 compounds that have progressed into the clinic: both as monotherapy and, importantly, in combinations, in China and globally. The first product wave is embarking on pivotal global studies, with the next wave progressing into proof-of-concept trials. Over the course of 2021, HUTCHMED plans to initiate 8-10 registration and registration-intent studies in 2021. Two drugs – fruquintinib (Elunate), surufatinib (Sulanda) – are already marketed in China, and are set to be joined by a third (savolitinib) assuming approval later in 2021. These three leading assets all have important clinical and regulatory news flow in the next six months in HUTCHMED’s home market and globally.
  • Elunate and Sulanda, together with the likely approval for savolitinib, are transforming HUTCHMED’s China prospects. Receipt of the first global approval decision, for surufatinib from the FDA is also possible around year-end. Commercially, Elunate is responding well to the increased promotional focus, with combined FY21 revenues for the Oncology/Immunology business (including first Sulanda sales and a savolitinib milestone) guided to $110m-$130m (FY20: $30.2m). The China commercial operation is currently 420 salespeople covering 325 cities, 2,300+ hospitals, and 20,000+ physicians, and is expected to grow to c 900 employees by end-2023.

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 commercially, over the next six to 18 months, as well as the progress of earlier stage programmes, particularly HMPL-689 and HMPL-523. Our valuation, updated for the raise, is $6.37bn ($42.80 per ADS) or £4.90bn (658p/share) vs $6.27bn ($43.10/ADS) or £4.83bn (663p/share) previously. This is based on conservative assumptions, with the anticipation of further value uplifts as progress is achieved.


8 April 2021

Price (US ADS)
(UK share)
Market Cap
AIM London
Company CodesHCM
Corporate clientYes

Company description

HUTCHMED (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.


Lala Gregorek
+44 (0) 20 3637 5043

Franc Gregori
+44 (0) 20 3637 5041


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