Hutchmed (china) Share Discussion Threads

[nfs] 25/3/2016 16:46

Nerdsofsteel
I too found that article
Good summary

[nerdofsteel] 25/3/2016 16:17

"Don't Ignore This Potential Chinese Pharmaceutical Giant"

[aim999] 21/3/2016 10:47

Clearly value to be had here... Suspect we will see steady news flow keeping this going back up

[nerdofsteel] 21/3/2016 10:44

Nice first American ADS purchase by a Director, I suspect we will see a few of these going forward as AIM Directors purchases will be less visible to the American Investment community

[bamboo2] 20/3/2016 11:21

Could be a Head and Shoulders chart pattern. [t=1325]

[nerdofsteel] 20/3/2016 10:14

hxxp://money.aol.co.uk/2016/03/15/could-aim-stars-asos-plc-telit-communications-plc-and-hutchison-china-meditech-limited-fund-your-retirement/

[nerdofsteel] 17/3/2016 23:13

Im always accumulating these since mistakenly selling at lot at about 350p a few years ago

Brilliant company, superb vision, excellent strategy and execution IMO and rapid revenue, profit and cash growth

[cisk] 17/3/2016 23:00

NOS, thanks for that.

I can't remember offhand what the property windfall amounted to and when it was due, but agree with your assessment.

Perhaps the current share price represents an accumulate opportunity?

[nerdofsteel] 17/3/2016 22:36

SeekingAlpha's websites says of HCM today

"Additional risks include significant indebtedness and need for significant additional funding post-IPO"

WRONG on all levels. If that is the best analysis leading Wall St Analysts can come up we are doomed! There is NO DEBT, only debt facilities. We have CASH, generate CASH and it's doubtful we'll need additional funding for 3 reasons.

1. Our commercial division is generating a lot of cash
2. we are due property windfalls
3. we are due multi million $ milestone payments from partners

These people seem to know nothing

[nerdofsteel] 17/3/2016 22:28

We intend to use the net proceeds of this offering, together with the cash
generated by our operations and other cash resources, primarily to further
advance the clinical development of our multiple drug candidates. In particular,
we currently expect to use the net proceeds from this offering as follows:

. approximately $41.0 million to accelerate and broaden clinical development of
the drug candidates for which we retain all worldwide rights, specifically:

I. approximately $20.0 million to advance HMPL-523 through Phase I and into
proof-of-concept studies, expected to be conducted in Australia, the United
States and China, in rheumatoid arthritis, lupus and hematological cancer;

ii. approximately $12.0 million to advance sulfatinib toward NDA submission in
China and through Phase I and into proof-of-concept studies, expected to be
conducted in the United States, in neuroendocrine tumors, and through Phase
II and into proof-of-concept studies, expected to be conducted in China, in
thyroid cancer;

iii. approximately $7.0 million to advance epitinib into a Phase III
registration in China and through Phase I and into proof-of-concept
studies, expected to be conducted in the United States, in non-small cell
lung cancer with brain metastasis; and

iv. approximately $2.0 million to advance theliatinib through Phase I and into
proof-of-concept studies, expected to be conducted in China, in head and
neck cancer and esophageal cancer.

. approximately $27.0 million to support our share of the development costs of
our partnered clinical drug candidates, including:

I. approximately $12.0 million to advance savolitinib through NDA submission
globally in papillary renal cell carcinoma and EGFR tyrosine kinase
inhibitor-refractory non-small cell lung cancer and through proof-of-concept
studies in gastric cancer and VEGFR tyrosine kinase inhibitor-refractory
clear cell renal cell carcinoma;

ii. approximately $10.0 million to advance fruquintinib through NDA submission
in colorectal cancer and non-small cell lung cancer in China and through
proof-of-concept in gastric cancer in China and to advance fruquintinib into
proof-of-concept studies in non-small cell lung cancer and/or other solid
tumor indications in the United States either independently or in
partnership with Eli Lilly subject to the exercise of its global option; and

iii. approximately $5.0 million to advance either existing or new-formulations
of HMPL-004 into clinical development in mild-to-moderate ulcerative
colitis.

• approximately $11.0 million to progress pre-clinical drug candidates,
specifically:

I. approximately $4.0 million to advance HMPL-689 through Phase I and into
proof-of-concept studies, expected to be conducted in Australia, the United
States and China, in hematological cancer;

ii. approximately $4.0 million to advance HMPL-453 through Phase I and into
proof-of-concept studies, expected to be conducted in Australia, the United
States and China, in bladder cancer; and

iii. approximately $3.0 million to advance other drug candidates through
pre-clinical studies and into Phase I clinical trials.

• approximately $5.0 million to build production facilities to produce both
clinical and commercial supply of our drug candidates.

The expected use of net proceeds from this offering represents our intentions
based upon our current plans and business conditions, which we could change in
our discretion in the future as our plans and business conditions evolve. Due to
the many variables inherent to the development of our drug candidates at this
time, such as the timing of patient enrollment and evolving regulatory
requirements, we cannot currently predict the stage of development we expect to
achieve for our pre-clinical and clinical trial and drug candidates with the net
proceeds of this offering. We expect to use the remainder of the net proceeds
for working capital and other general corporate purposes, such as acquiring the
commercial rights to other drug products and expanding our research organization
and infrastructure. The amounts and timing of our actual expenditures may vary
significantly depending on numerous factors, including the results of the
pre-clinical and clinical trial of our drug candidates, our operating costs and
expenditures and the amount of cash generated by our operations. As a result,
our management will have broad discretion over the use of the net proceeds from
this offering.

Pending these uses, we intend to invest the net proceeds in high-quality,
investment-grade, short-term fixed income instruments.




Company Description
We are an innovative biopharmaceutical company based in China aiming to become a
global leader in the discovery, development and commercialization of targeted
therapies for oncology and immunological diseases.

We have created a broad portfolio of drug candidates targeting eight molecular


targets. We have taken a chemistry-focused approach to develop highly selective
small molecule tyrosine kinase inhibitors that are intended to have potentially
global best-in-class efficacy and are deliberately engineered to improve drug
exposure, reduce known class-related toxicities and allow different drug
therapies to be combinable. Highlights of our pipeline include:

. seven clinical-stage drug candidates, five of which have already achieved
proof-of-concept (meaning positive outcome achieved in Phase Ib/II studies),
with multiple potential global first-in-class or Breakthrough Therapy
opportunities, which means that such drug candidates could be eligible for
accelerated approval by the U.S. Food and Drug Administration, or the FDA,

. out of these seven drug candidates, four are wholly owned and three are
partnered with leading pharmaceutical companies, AstraZeneca AB (publ), or
AstraZeneca, Eli Lilly Trading (Shanghai) Company Limited, or Eli Lilly, and
Nestlé Health Science S.A., or Nestlé Health Science,

. 20 active clinical trials in various countries, with a further five planned to
start during the first quarter of 2016,

. three Phase III clinical trials currently enrolling, with a fourth expected to
start during the first quarter of 2016, and

. subject to favorable clinical outcomes, savolitinib has the potential to be
submitted for new drug application, or NDA, approval in late 2016 in the
United States, and fruquintinib has the potential to be submitted for NDA
approval in late 2016 or early 2017 in China.

[cisk] 17/3/2016 21:12

Can anyone say why we actually needed the ipo?

Presumably Hcm doesn't need the cash?

Feel slightly aggrieved that a) my holding has plummeted in value (although I'm more likely to,buy more than sell) and b) we're now exposed to the US mkt and tribulations of fx arbitrage.

[essential] 17/3/2016 17:25

It's a quality company with huge prospects but I can't understand the logic of the ADS price. Sold my last tranche this morning (luckily) as I think the whole US market is going to tank which will drag good and bad down with it. The QE experiment is quickly unfolding so have been topping up my gold!!

[nhb001] 17/3/2016 16:36

We got shafted.

[steeplejack] 17/3/2016 16:01

Maybe but the stock is in very choppy sector waters in an uncertain market.Moreover the sizeable placing discount does nothing to dismiss suggestions that the biotech sector might weaken further before things get better.

[nerdofsteel] 17/3/2016 15:44

makes me wonder why the IPO has taken so long when originally filed 5 months ago

I wonder if they've been delaying it due to market conditions and the discount and finally gave in.

Not good but I do not think it will stay at this market cap for very long, there's far too much upside and news to come this year

[steeplejack] 17/3/2016 15:17

For sure,so it's a bit of a mystery why the AIM quote held up so well,this morning.I'm surprised that the company proceeded with the issue at this time.Ordinarily,you'd expect a discount of perhaps 3% -5% to the benchmark AIM quote but the bankers obviously advised the company to entertain a discount of over 15% which makes you wonder,why the hell they went ahead.Perhaps the bankers felt,in the context of the massive price appreciation of recent years,they may as well bite the bullet.Look at the pummelling biotech trusts have suffered this year and today for that matter.Without doubt,the pricing level of the ADRs leaked out and it explains why the price plummeted a month or so back.Maybe they tried to finesse things for a few weeks and let things quieten down.Hasn't done much good.

[nhb001] 17/3/2016 15:01

It was always going to be arbitraged. They offered a 15% discount.

[steeplejack] 17/3/2016 14:39

Just the biotech sector is well out of favour helped by sound bites in US election year.Unless the company comes out with good news pronto,looks like the stock will equalise around the placing price.The US institutions drove a hard bargain when it came to pricing the offer and if the other bulletin boards are anything to go by,it's caught the punters out.Of course,the placing is quite sizeable in increasing the free equity outside of the Hutchinson interest.

[nerdofsteel] 17/3/2016 14:31

maybe we should change our name - clearly the word China puts off many U.S. Investors

[steeplejack] 17/3/2016 10:32

The price reaction today suggests you might be right.They're holding up well.

[steeplejack] 17/3/2016 07:34

I think that explains the sharp drop in share price some weeks back.The intended pricing of the ADSs must of leaked out.An equivalent London price of £19.42 is a sizeable discount to the existing AIM price.I'd be surprised if we didn't see a few taking a quick profit in the US.Maybe,it was optimistic but I thought (especially given you can get a slug of stock)they might get this placing away at nearer the AIM price ie £22-50 odd.Not to be.I can see them doing the greenshoe,additional placing,in full.Who the hell wouldn't want to go for that at a discount to the London price of getting on for 15%!Nonetheless,they've done the issue in a difficult environment and have a listing in the US which will no doubt prove to be the primary vehicle for any intended fund raising in future years (as it has proven for GWP).

"7,500,000 ADSs were sold in the Offering at a price of US$13.50 per ADS, and the offering price is thus equivalent to approximately GBP19.42 per ordinary share (on the basis of an assumed exchange rate as quoted in the preliminary prospectus of GBP1.00 to US$1.39). Each ADS represents one-half of one ordinary share of Chi-Med. The ADSs have been approved for listing on the Nasdaq Global Select Market and are expected to begin trading on March 17, 2016 under the ticker symbol "HCM." Chi-Med's ordinary shares will continue to be traded on the AIM market of the London Stock Exchange following the Offering under the ticker symbol "HCM."

[nerdofsteel] 16/3/2016 11:11

Big day tomorrow, massive fundraise that is not dilutive and will help us to push several drug candidates over the line. Moving ever closer towards revenues measured in billions rather than millions

[aim999] 16/3/2016 10:40

Bit of buying today ahead of listing in us

[nerdofsteel] 15/3/2016 11:23

Over $100m in the bank on Thursday, followed quickly by major pipeline news I suspect