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AZN acquiring Gracell Biotechnologies, a Chinese pharmaceutical company for $1 billion. Gracell sp has raisen 30%. Fingers crossed!
Would you rather:
Sell to a Big Pharma (Takeda, AZ, PFE etc)
Merge with a larger China player (eg Innovent / Beigene)?
Takeover / merge with a smaller Chinese player? (Eg Gracell)
Continue as an independent and grow organically?
First option, if ever happens, would be nice for long time holders.
AZ and others have had time to buy Hutchmed at a ridculously low valuation and some could argue they still can. Currently for UK based shareholders we now have the continued appreciation of GBP against the USD as another headwind to deal with.
Yes, first option too, Takeda or AZ both with a strong focus on China which is also Hutchmeds strong point.
Bristol Myers have made two related acquisitions recently, there was also a third in October with acquisition of Mirati Therapeutics
Bristol Myers to buy RayzeBio for $4.1 billion
"Dec 26 (Reuters) - Bristol Myers Squibb (BMY.N) said on Tuesday it would buy RayzeBio (RYZB.O) for about $4.1 billion to bolster its cancer drug business, marking the second multi-billion dollar deal struck by the drugmaker in less than a week."
https://www.reuters.com/markets/deals/bristol-myers-buy-rayzebio-about-41-billion-2023-12-26/
Most are away from desks so news is not really being absorbed, still a bit of room in portfolio for a few more.
Also option 1 but with a lot more of a premium than 30%...! eg 100% is acceptable.
in comparison to those two chinese companies, where does hcm stand?
it is quite well established, successfully developed three oncology therapies which are already in the market. fru*****inib has recently become available in the united states and awaiting approval in europe and japan. plus a pipeline consisting of various ongoing phase2 and phase 3 studies for a number of clinical applications.
has hutchmed already become too big to be merged with another major phama? if at all possible, what might be an appropriate offer price?
Only a few are too big to be acquired……Pfizer has a $43bn deal recently agreed for Seagen.
My long held view is that China will want to see some local champions emerge and I think CKHH will swap their stake for a smaller holding in a bigger entity. They gave up on being the majority shareholder a long time ago…so it will come down to deal structure (cash/equity mix)….it will be the larger party giving value to the smaller party, so an offer by a larger player with a mix of cash / equity is my most likely outcome that is acceptable to CKHH and China regulators.
Over the holiday break, in the US, Bristol Myers Squibb scooped up Boston innovator Karuna Therapeutics for £11.5billion.
Britain’s Astra deepened its commitment to oncology and China with the purchase of Gracell for just under £1billion.
Earlier in December, Astra splashed a similar amount on Seattle-based Icosavax which is pursuing a vaccine for RSV, a respiratory virus.
Pfizer, after a regulatory pause, has just secured approval for its £33billion takeover of cancer care group Seagen as it plays catch-up with Astra and others.
https://www.thisismoney.co.uk/money/comment/article-12904577/ALEX-BRUMMER-Big-pharma-bets-biotech-global-drugs-industry-booms.html
Those that successfully pushed for a change in strategy will no doubt be monitoring all of this M & A activity.
Is the majority holder interested, at all, in receiving an offer, irrespective of what other, institutional and private, investors’ wishes?
As a minnow holder, I am interested to see an offer price!!
All we really know is there has been a shift towards commercialisation and shareholder interests, if this includes a takeover while keeping their long term goals intact then possible.
Given the figures involving Takeda deal, you have to wonder if this topic has not already surfaced before.
In case, management has any genuine intention of safeguarding investors’ interests, it is not yet been made visible. Rather, the short sellers have been playing the market, fearlessly. Even after the Takeda deal (worth a third of the market value of the company), share price has failed to recover. No news of new fund holders/ institutions showing interest.
Hope 2024 will bring back the long last shine to the sp. In the mean while, investors have to remain philosophical for this company working hard to develop new therapies to patients diagnosed with serious health conditions.
the company has very little track record of safeguarding investors interest, aptly demonstrated by ckhh's botched placing ****-up a few years ago, although to be fair it appears even senior management weren't aware it was going to happen. sometimes i get the feeling this is a ckhh vanity project.
AZ has signed another Chinese deal with Allorion (operates in China and US, but appears to be unlisted in US). The deal looks similar to that struck with HCM for Savo. A new EGFR drug will be developed by AZ in return for staged milestone payments and future royalties.
FTSE private takeovers will continue 'unless action is taken', analysts warn
The 'relentless' pace of delisting and takeovers by foreign buyers will continue if urgent action to incentivise UK stock ownership is not taken, a senior analyst has warned.
https://www.thisismoney.co.uk/money/markets/article-12921859/FTSE-private-takeovers-continue-unless-action-taken-analysts-warn.html?ito=email_share_article-top
Hong Kong-based AI-driven company sells potential breast cancer drug in deal whose value could exceed US$500 million
Insilico grants Italy’s Menarini Group, the global rights to develop and commercialise a novel small molecule inhibitor, as a potential treatment for hormone-sensitive cancers
https://www.scmp.com/business/banking-finance/article/3247263/hong-kong-based-ai-driven-company-sells-potential-breast-cancer-drug-deal-whose-value-could-exceed