Hutchmed (china) Share Discussion Threads

[dbadvn] 26/10/2017 23:31

Cannot understand why they keep pricing the USD offerings at such a large discount!
I can see no need to do this .

[melf] 26/10/2017 21:30

Yep...you definitely get the impression something's brewing here.

[mad foetus] 26/10/2017 21:14

Closed around £47 on absolutely huge volume. So, we have a war chest of cash and no shortage of buyers. Let's see what tomorrow brings

[montynj] 26/10/2017 20:52

More like 46 now

[mad foetus] 26/10/2017 19:59

Gone on a tear tonight, looking good for £45 tomorrow

[steeplejack] 26/10/2017 17:08

Monty,I'm shocked that you could possibly suggest such a thing.

[mad foetus] 26/10/2017 09:57

I guess this is always a risk when the major shareholder has 60%. But on the bright side, we now have a lot of money and strong support at around £40, so in the long term it makes little difference.

[montynj] 26/10/2017 09:38

Hence in due course we will probably get another RMS sharing that he's holding his now above 3% or above 5%

[montynj] 26/10/2017 09:37

It wouldn't surprise me that the reason Mark Slater sold his holding down below 3% was to allow for him to participate in this offering

[steeplejack] 26/10/2017 09:13

Offer struck at $26-50 (£40 equivalent)a discount of some 9% to last night's US close.Unnecessarily generous but we've been there before.

[nerdofsteel] 26/10/2017 07:30

Directors made lots of purchases recently

$262m is surely much more than we need for currenet pipeline development.

Some kind of deal is on the cards In my view, maybe similar to the one Beigene just did with Celgene? Or maybe we are going to buy back global rights to Fruquintinib????

Something is brewing

[mad foetus] 25/10/2017 21:22

Closed at around £44. Very positive. I wonder if we will get results in the morning?

[bellymonster] 25/10/2017 21:11

USA price up 5% at present.

[nfs] 25/10/2017 20:01

USA price ahead at the moment

[dbadvn] 25/10/2017 18:15

Yes.

Someone knows a lot more than we do...

[steeplejack] 25/10/2017 15:49

Price now higher.On a day when a placing is announced that's very bullish,the book building must going exceptionally well and the discount must be negligible .

[nerdofsteel] 25/10/2017 15:20

DBADVN - grrrr don't remind me about the discounts to US institutions!!!!

[nerdofsteel] 25/10/2017 15:19

to be fair Christain Hogg said a year ago when interviewed by Panmure Gordon that they may go to the market if the time is right.

We should also be aware that HHHL is taking up most of these new shares

This is not the usual small AIM Company dilution

These guys deploy cash effectively and Pharma is massively expensive. They may use some of the cash to buy back rights to Fruquintinib or Savolitinib (like they did with Astra a year ago) so that would be a great way of adding future value as these drugs come to market.

This Management Team have delivered 2200% shareholder value in 10 years.

[steeplejack] 25/10/2017 09:06

I'm surprised that the shares are down over 6%.The funding is as good as done and they'll only be some 38% of new free equity to be issued.The additional equity that could be issued,another $40m worth depending on demand ,will almost certainly be snapped up.Under a book building process like this,I would not expect a placing discount of more than 3% but,with the benefit of hindsight,the company has always been rather generous with the discounts it affords US institutions as many here will remember!Its more than keen to build a good institutional share base in the US.

[nerdofsteel] 25/10/2017 09:04

indeed - doing it today!

Also, from the prospectus..

"HHHL, our majority shareholder, has indicated an interest in purchasing up to $182.0 million in ADSs in the aggregate in this offering on the same terms as other investors"

HHL being Hutchison Health Holdings Ltd

A clear and demonstrable show of confidence by our largest Shareholder...... :o-)

[melf] 25/10/2017 08:54

Well there's your top-up opportunity Nerd!

[nerdofsteel] 25/10/2017 07:59

Cisk, ditto, I also hold UK shares and ADRs.....

This offering will be taken up by Institutions....it may be possible to obtain some via a Broker but this is firmly aimed at institutional investors. Also interesting that on NASDAQ Biotechs at a similar stage in their development are often 80%+ insti owned as retail investors won't invest for the long term and don't understand Biopharma

Why raise cash now? Late stage pipeline development is extremely expensive. I also think some of the proceeds could be used to buy back a share of an asset, like they did with AZ and Savolitinib....

For example, could we be buying 100% China rights to Fruquintinib or Savolitinib leaving Lilly and AZ with ex China rights?

Just a thought because this is a large amount of cash being raised, so I suspect it's not just for general purposes!!!!

on another note, I'm also reassured because the Directors have large stakes and continue to buy, even at these prices, so they are very confident ;o-)

[cisk] 25/10/2017 07:47

And this probably explains recent price weakness?

[cisk] 25/10/2017 07:46

NOS, I hold both U.K. Shares and building up US holdings, and like you have been in this company since the early days (wish I had my original holding!)

Will we be able to participate in the US offering? Also why do you think they are raising this cash, given they are cash generative and have you heard if they have received all the proceeds from the site sale?

Why would a large pharma be willing to be bought out if any of the drugs in pIII are potential blockbusters?

Just questions I am asking myself and wondered if you have a view...

Cisk