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Trinity Delta view: HUTCHMED’s investment case rests largely on the strength and depth of its late-stage pipeline for the China and global markets as well as the next product wave of haem-oncology assets approaching registration-intent trials. To date the in-house discovery platform has generated 11 clinical-stage assets, with three products approved and marketed in China in their first monotherapy indications; the first US approval is expected in H122. Cash of c S$1.2bn means HUTCHMED has funds to invest in its in-house pipeline, its increasingly global commercial operations, and in selected external product opportunities.
Clinically and commercially, the Epizyme deal adds a highly complementary, and potentially synergistic, asset to HUTCHMED’s pipeline. Potential China approval of Tazverik as monotherapy (assuming positive clinical data and regulatory review) could make it the first EZH2 inhibitor marketed in China and would accelerate the build-out of HUTCHMED’s China haem-oncology sales team. Its mechanism of action and clean safety profile also lends Tazverik to exploratory combination studies with several HUTCHMED pipeline assets in multiple solid/haematological tumours.
Lighthouse
10 August 2021
| Price (US ADS) (UK share) (SEHK share) | US$42.94 610p HK$66.80 |
| Market Cap | US$7.42bn £5.21bn HK$57.7bn |
| 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
Franc Gregori
fgregori@trinitydelta.org
+44 (0) 20 3637 5041
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