Hutchmed (china) Share Discussion Threads

[lauders] 16/1/2021 02:19

steeplejack - You make a good point and congratulations on your success with the other US biotech holdings. While your point is valid though I think that institutions need to spread their risk and over a long term horizon HCM will reward them given their unique and sole proprietary drugs coming into view. They can at least invest a proportion of their assets in HCM (via the ADRs if better) and who knows what plans are in the works re: other listings as discussed here previously.

[steeplejack] 15/1/2021 19:45

Recently,I’ve fortunately benefitted from holding a selection of gene therapy related US biotech stocks.The outperformance of these stocks (whether it is sustained or not)contrasts with the sheer tedium of holding HCM especially in the U.K.,where it is treated like a stock with an inconsequential market cap.In fairness to the AIM marketmakers,the lack of trading interest is more typical of a company with a market capitalisation of around £50m than £3.5bn.It irritates me and I suspect it irritates others.If you were a U.K. institution with a remit to invest in sterling assets,would you really wish to invest sizeably in HCM listed on the AIM market where trading is so obviously thin and illiquid.Of a morning,the shares often open with a 5% nominal spread characteristic of some flighty junior mining company.Well Neil,Woodford might of taken the gamble but HCM should wise up to the fact that outside of NASDAQ ,it’s global listing presence is inadequate and detrimental to the group growing truly global investor recognition.Yawn....

[nerdofsteel] 15/1/2021 07:07

Talking to the Company over many years I always got the impression they were miffed they ever had to do partnerships because they had the expertise but needed the milestone payments during development, but had to give up rights to their own drugs with Savo and Fruquintinib.

Long term, I think going it alone is the right decision, but a Beigene type deal would have given Chi-Med a massive short term boost in valuation.

I hope Chi-Med can get Surufatinib to the No. 1 position in all NET indications in the U.S. and Europe in short order!

[its the oxman] 14/1/2021 23:32

Just sold most of my Beigene at today's 340 high (thx NOS for your previous comments) If only we could have a similar run. Is going it alone wrong? , not sure myself but the market certainly suggests Beigene is doing some sweet deals. Frustrating , but at least I can now top up here again on any dip - hope I'm not getting a bit sentimental toward good old hcm.

[dbadvn] 14/1/2021 17:03

BeiGene streaking ahead of HCM in the commercialisation process, Wondering if going it alone is the right decision , or just the wrong partners?

[nerdofsteel] 13/1/2021 10:27

Savo - "- its moving along as fast as Astra will allow ..."

well at least AZ have appointed someone to commercialize Savolitoinib now so let's hope they get on with it!!!!!!!!!!

Global Head of Commercialization - DS 1062 & Savolitinib20 Oct '20
AZ have posted a new role on 26th September for a Global Head of Commercialization - DS 1062 & Savolitinib



As a Head of Commercialization for new assets DS 1062 & Savolitinib, you'll play a pivotal role in channeling our scientific capabilities to further our agenda on doubling the 5-year survival rate by bringing these new assets to commercialization. The role has leadership accountabilities that are critical to the delivery of AZ business objectives and portfolio value targets.

[whatja] 11/1/2021 20:42

There is a key person link between HMP and INMAGENE

Dr. Wei has been the founding partner of Pivotal Bioventure and I-Bridge Capital, in addition to the venture partner of KPCB China. Prior to join KPCB, Jimmy was the Senior Vice President and head of business development at Hutchison MediPharma, where he led the effort to set up multiple partnerships with US and European pharmaceutical companies.


This might explain why and how HCM and INMAGENE have come to a deal. Seems likely he was involved in the initial Lilly and AZ deals and would know the metrics HCM would consider acceptable.

[dbadvn] 11/1/2021 19:54

In reply to miti's post 2881 wrt Savo/Tag combo.

Ch reply is that there is absolutely no clinical issue with the combo - its moving along as fast as Astra will allow ...

[dbadvn] 11/1/2021 19:49

Whatja, have to disagree. I have some experience in this area.

Always put in the rational behind the deal ( leaving out any negatives ! ). You want to lead the understanding of the deal , rather than let the analysts speculate in the way you have described.

Wont be difficult to find out in any case.

[whatja] 11/1/2021 18:23

The press releases always focus on the facts that are agreed by both sides.

they leave out the reason for the deal as that might expose weaknesses on both sides.

Imagine writing it up as:

INmagine has agreed to fund the development of four discoveries that HCM can’t be bothered with and has guaranteed a large profit for HCM on each successful candidate....The chances of success are low for any particular candidate, may still be low for one of four to proceed to approval.

Or

HCM has a prolific discovery engine but has not invested in its clinical capability and cannot afford to progress all its promising early stage. Significant value has been transferred to a developer in return for no upfront payment and a small unspecified royalty.

Not flattering for either side so we get a strategic partnership to develop a portfolio of new candidates.

HCM has identified a number of promising drug candidates and its partner is experienced in developing such products implies more likely to be successful. Terms give HCM milestone payments and royalties so generating a future profit stream.

Everyone is happy!
We need to read between the lines and interpret CHs comments to see what we think drives the deal and therefore whether it is a net gain or loss. I suspect that it does create value from early stage candidates and eases cash flow demands in 22/23/24.

[dbadvn] 11/1/2021 17:44

Whatja,

I agree. so why not put that in the press release?

[whatja] 11/1/2021 17:08

DBAVFN I think the value is in allowing the pipeline to progress at a higher speed and reducing the cash burn of HCM.
Instead of spending several 100m USD on developing this part of the pipeline (ina new area where they are less experienced), they will get up to 230m per candidate plus future royalties.

The alternative might be to have a major fund raise to develop these products...which may not be popular either.

If HCM has more discoveries than it can handle, it is right to sell them so they can be developed earlier rather than holding them and slowing delivery and being cash constrained. The terms of the contract are likely to be revisited in future as the Lilly and AZ contracts have been....if this is a deal with a small organisation they are taking a lot of risk on, they may need more cash in future which may allow HCM to buy back in if it looks successful.

[dbadvn] 11/1/2021 16:55

No mention of Inmagene in the new presentation.

Perhaps it is to allow HCM to concentrate on just Oncology?

Still cannot see where the value to HCM or shareholders is .

[nerdofsteel] 11/1/2021 13:27

no, I agree, and it's CEO is a serial Biotech vc investor - I just don't get it myself

The Company has posted a revised Corporate Presentation today

[dbadvn] 11/1/2021 12:15

Not understanding this inmagene move at all.
Inmagene seems to be a tiny outfit formed in 2019 with very little capability esp compared to hcm.
Have I got this wrong?

[whatja] 11/1/2021 08:22

Should be a livelier than expected presentation by CH today

[nerdofsteel] 11/1/2021 04:55

indeed! just received that myself lauders

I wonder why chi-Med have gone down this route.......is it because they are too busy with the lead candidates?

[lauders] 11/1/2021 01:21

Nice to see this press release pop-up in my inbox just now:

Chi-Med and Inmagene Announce Strategic Partnership to Develop and Commercialize Portfolio of Drug Candidates for Immunological Diseases

Hong Kong, Shanghai, San Diego & Florham Park, NJ: Monday, January 11, 2021: Hutchison China MediTech Limited (“Chi-Med”) (Nasdaq/AIM: HCM) and Inmagene Biopharmaceuticals (“Inmagene”) today announce a strategic partnership to further develop four novel preclinical drug candidates discovered by Chi-Med for the potential treatment of multiple immunological diseases. Funded by Inmagene, the companies will work together to move the drug candidates towards investigational new drug (“IND”) submission. If successful, Inmagene will then move the drug candidates through global clinical development.

[sportii] 10/1/2021 09:14

I remember reading somewhere about the shares allotted to General Atlantic and CPP (worth $100 million each at the time of allotment) are listed at LSE and trade able only at LSE. Hope this information is correct, for the sake of long term and loyal UK share holders. If it is not expensive to keep the AIM listing, HCM should maintain its presence in London stock exchange.

[sportii] 10/1/2021 04:37

Following the much anticipated asian (HK and ?+STAR) listing, will HCM continue to trade here, on LSE AIM market? Let’s hope the CEO will be confirming this in tomorrow’s JPM healthcare conference.

[whatja] 09/1/2021 18:21

Be careful what you wish for....a HK or STAR listing could come in a variety of flavours

Option A
A small listing of 1-200m USD with a part sale of stock by hutchison to minimise dilution.

Option B
A large listing of a 1bn or more to fund an acquisition.