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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 through partnerships. The positive FRESCO-2 data and physician commentary suggest potential broad uptake of fruquintinib in advanced mCRC given the survival benefits, lack of off-target toxicity and manageable adverse events. Hence, given the potential in mCRC alone, fruquintinib represents a natural candidate for partnering, in our view. Our HUTCHMED valuation is currently $5.51bn ($31.89 per ADS), £4.6bn and HK$43.1bn (531p or HK$49.83 per share); we intend to revisit our forecasts once further details on the broader strategy, and on specific assets like fruquintinib, become available.
Lighthouse
19 December 2022
| Price (US ADS) (UK share) (SEHK share) | US$13.77 238p HK$22.30 |
| Market Cap | US$2.38bn £2.06bn HK$19.28bn |
| Exchanges | NASDAQ AIM London SEHK |
| Sector | Healthcare |
| Company Codes | HCM HCM.L 0013.HK |
| Corporate client | Yes |
Company description
HUTCHMED is a Hong Kong headquartered biopharma focused on discovering, developing and commercializing innovative targeted therapeutics and immunotherapies to treat cancer and autoimmune diseases. It has a diverse pipeline of first-in-class/best-in-class selective oral TKIs in development for the China and global markets.
Analysts
Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043
Philippa Gardner
pgardner@trinitydelta.org
+44 (0) 20 3637 5042
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