Proposed listing in Hong Kong and global offering
Lighthouse | 15 April 2019
Trinity Delta view: The additional listing of Chi-Med in Hong Kong should boost the company’s liquidity, increase its access to capital, and further raise its profile in its home market. This is a timely move which makes particular sense given the progression of the company, the rapidly evolving healthcare market in China, and the new SEHK listing rules for biotech companies in Hong Kong.
Although Chi-Med has not given any indication of the size of the primary capital offering, we would estimate that it would be looking to raise in the order of $200m to $250m based on the company’s expected cash burn over the next two years. This would allow the Chi-Med to maintain its focus on maximising the value of its broad pipeline, which currently has eight compounds in clinical development in over 30 clinical trials in China and around the world. On top of the primary raise, the secondary placement of CK Hutchison-owned shares will be c$300m based on the current share price.
We value Chi-Med at $4.74bn ($35.57/ADS) or £3.65bn (£54.72/share) and with the rich news flow for 2019 and beyond, we anticipate clinical, regulatory, and commercial catalysts that will unlock further value.
15 April 2019
|Price (US ADS) (UK share)||$31.20|
Hutchison China MediTech is a Hong Kong headquartered biopharma with an established Commercial Platform in China, and a diverse pipeline of first-in-class/best-in-class selective oral tyrosine kinase inhibitors (Innovation Platform). Its pipeline, discovered in-house, is in development for the China and global oncology markets.
+44 (0) 20 3637 5041
Mick Cooper PhD
+44 (0) 20 3637 5042
+44 (0) 20 3637 5043
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