Hutchmed (china) Share Discussion Threads

[lauders] 30/7/2019 11:15

Will need a bit of time to recover from here it seems. We really need some good results down the line and some positive outcome to this:

Seroquel® update: Seroquel® (quetiapine tablets) is an anti-psychotic therapy approved for bi-polar disorder and schizophrenia. Since early 2015, Hutchison Sinopharm has been the exclusive marketing agent for Seroquel® tablets in China. In June 2018, AstraZeneca sold and licensed its rights to Seroquel® to Luye Pharma Group, Ltd., including its rights in China. The terms of our agreement with AstraZeneca were assigned to Luye Pharma Hong Kong Ltd. (''Luye HK''). In May 2019, we received a notice from Luye HK purporting to terminate our agreement. We believe that Luye HK has no basis for termination and intend to vigorously enforce our rights under the current agreement. During 2018 and the first half of 2019, net income from our Seroquel® business represented approximately 4.0% ($1.7m) and 1.3% ($0.4m) respectively of the net income attributable to Chi-Med from our Commercial Platform.

Remember when I sent an e-mail about whether this would be a problem or not after the news of Luye's purchase and was assured that it was OK. Things turned against HCM so my concerns were justified.

[steeplejack] 30/7/2019 07:10

Equity Capital Markets ("ECM") update

In mid-April 2019, Chi-Med announced our proposed intention to list our shares on the SEHK. We continue to consider this however, our listing application and potential concurrent global offering remain subject to, among other things, market conditions.

In July 2019, our largest shareholder CK Hutchison(1) completed most of its previously announced plan to reduce its shareholding in Chi-Med to below 50% by reducing its shareholding from 60.2% to 51.2%. Upon the shareholding of CK Hutchison in Chi-Med falling below 50%, Chi-Med will no longer be a consolidated subsidiary of CK Hutchison thereby reducing the impact on CK Hutchison's earnings of Chi-Med's investment in the accelerated development of its global pipeline. Going forward CK Hutchison is expected to remain Chi-Med's largest shareholder for the foreseeable future and Chi-Med will continue to benefit from the long term support of its founding shareholder.

We believe that our current cash resources including short-term investments, along with our cash flow from operations, dividend payments and potential bank borrowings, are sufficient for Chi-Med to reach multiple value inflection points on our pipeline. We also have the added potential to access non-dilutive finance that could be derived from the disposal of certain non-core Commercial Platform assets.

This provides us with considerable flexibility on the type, and timing, of any future ECM activities.

([1]) CK Hutchison Holdings Limited ("CK Hutchison") (SEHK: 1), a multinational conglomerate with revenues of $58 billion in 2018 and employing over 300,000 people in over 50 countries across the world.

[steeplejack] 29/7/2019 21:23

They might not include anything about the Hutchinson sale in the press release but they're going to have to field questions about the placing.They should clarify whether the parent still intends to move to below a 50% equity holding.They should also thank Morgan Stanley on Hutchinson's behalf for paying $24 a share and enquire whether the banker responsible is still employed :)The volume and price rise today suggests that news tomorrow might reassure but potential buyers will need to know whether MS has managed to reduce the 'stick' to levels that might not inhibit buyers.As far as the share price is concerned,these short term considerations will take centre stage for now.If not for this placing screw up,the shares might well be some 50% higher.

[maywillow] 29/7/2019 18:40

All the best for tomorrow

[nerdofsteel] 29/7/2019 17:59

Tomorrow I am particularly looking forward to Elunate sales data and comments on the possibility of inclusion onto the NDRL.

I do not think the Company will comment much if at all on the HHHL/CKH Secondary offering.

It would be great if we also had an update on the Surufatinib NDA discussions with the Chinese FDA.

The webcast is at 09:00 BST

www.chi-med.com/investors/event-information/

[nerdofsteel] 27/7/2019 15:57

indeed, Capital H, thanks Grumps!

[the grumpy old men] 27/7/2019 12:59

Nerdofsteel
27 Jul '19 - 12:56 - 2077 of 2077
0 0 0


Warren Buffett applies here in my view:-

"If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes”

“Invest Only in Companies You Understand”

I am proud to have been invested for in excess of 10 years in the Company and will be invested for another 10 years

[nerdofsteel] 27/7/2019 12:56

hxxps://www.chi-med.com/about-us/

Warren Buffett applies here in my view:-

"If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes”

“Invest Only in Companies You Understand”

I am proud to have been invested for in excess of 10 years in the Company and will be invested for another 10 years

[rabiddog] 26/7/2019 14:25

Why did you buy the share ?

[nerdofsteel] 25/7/2019 07:22

Hutchison Healthcare Holdings Limited
Ordinary Shares Held 340,978,770
% of Share Capital 51.15%

Good H1 results next Tuesday together with some further pipeline updates, growing Elunate sales and an update of the NDRL status will help a lot with recovery. As I have said many time, I still maintain this will be a $20bn mcap Company within the next 10 years

[saiyang2019] 24/7/2019 15:23

It is a good time to buy in.

[its the oxman] 24/7/2019 15:15

Just hoping my top up at 350p comes good. Little bit of positive news and this could spike up. Frustrating though.

[its the oxman] 23/7/2019 17:16

Bargain at this price surely.

[thornyone] 23/7/2019 16:32

Cheer up you lot. I think it'll be one way now - upwards.

[dbadvn] 23/7/2019 16:10

Hi NoS,

Not certain but I think that Hutchison are still over 50%...?

[nerdofsteel] 23/7/2019 15:47

I have been invested for 10 years and will be invested for a further 10 years

This price action and dramatic drop has nothing to do with the Company's dramatic pipeline progress or its ability to execute its strategy.

There is a question over cash requirements to fund the large and deep pipeline due to the delay with the HK listing but I am confident that will get resolved.

I doubt whether the CEO will comment much on the secondary listing by HHHL as they are a minority shareholder now, and events were outside his direct control, but I hope he reassures Analayts and Investors next week that we are on track and the HK listing will take place at a time that makes sense.

[patrick0999] 23/7/2019 14:44

The drop could be because of the recent protests in HK?

[dbadvn] 23/7/2019 14:14

Landers,s jack,

Agree,. At this point you either leave or top up. Depends on your time horizon and risk attitude.

I’m in until we hear from ceo on Aug 2nd. Will make my mind up then.

[steeplejack] 23/7/2019 08:01

Added later,post earlier ramble below....Actually,the MMs (somewhat to my surprise)are prepared to bid inside the spread for reasonable size this morning.Darkness and dawn?

This stock,courtesy of an ill executed placing,is suffering chronic indigestion.There is every reason to believe that,once the logjam clears,HCMs excellent developing drug portfolio will take centre stage once again.However,the market needs HCM to provide some thorough going explanations as to the marketing failures of the last few weeks.For that is what they are,a failure to promote HCM as a good investment at the price and get this placing away smoothly.

[lauders] 23/7/2019 02:17

Figures a week tomorrow.Lot of questions will be asked.Hopefully a few answers will be provided.

Is it worth buying/topping-up before the figures is the big question? Given the handling of the offering and HK listing so far I am sure many investors have been put off such an action. It may be lucrative one day but how long will they have to wait and will the opportunity to buy cheaper still materialize? Anyone with excess funds to stick into something and wait for sentiment to change could do well here, just as the chance to do that at JOG presented itself a while back. Look what happend to them on news yesterday! RSI here is heavily oversold at present.

[nerdofsteel] 22/7/2019 20:17

Not sure about the value of a full UK listing, lots of extra costs. I think HK listing makes the most sense, or Shanghai, but HK for regional Investors with a global focus.

[steeplejack] 22/7/2019 18:22

It'll be alright.There's a learning coefficient here for a new company and all who sail in her,investment bankers included.It looks increasingly unlikely that they'll be a HK listing anytime soon.Maybe the company should opt for a full listing in the UK instead.I suspect that Morgan S are being squeezed.The market operators know that they're carrying a bloody great loss on the book.One day we'll learn that they've placed the stick ...but at what price!

[nerdofsteel] 22/7/2019 16:30

I agree s/jack and it seems to me that no matter what this Company does, how it delivers or how successful it is, the market will unfairly hammer it due to things outside its control. This is a shame because the Company has done nothing wrong and continues to deliver, but it has been let down by events outside its control. As a long term Investor I'm confident we will recover but recent events have knocked that confidence. We need a great set of H1 results next week.