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With the high standards of trading regulations, LSE listed stocks should be attractive to Chinese investors. HCM being a China based company with a fantastic track record, great management headed by very good CEO and an attractive pipeline, we can expect good days ahead. Perhaps, Chi Med should consider listing on Shanghai SE and create a similar ‘parallel’ valuation it has between AIM listed shares and NYSE listed HCM ADRs. Am I expecting too much??;)
Seen a message on another bb. As per the new link, started from today, between Shanghai stock market and London stock market, investors in UK and China can buy shares in each other’s stock exchanges. Good news for chi med.
Thanks jatW and others. I have been buying HCM for more than 7 years. Never had to pay any stamp duty as HCM is an AIM share. Bit surprised to see this morning’s buy order quote showed stamp duty of 0.5%. It made me to wonder if HCM has moved out of AIM.
Earlier today, tried to place a buy order in Barclays stock ISA accnt. Surprised to see the quote showing a stamp duty of 0.5%. Are AIM shares not excluded from stamp duty? Or, is HCM come out of AIM ‘very quietly’? Perhaps, more likely, a technical error at Barclays.
Let us hope, entry to HK stock exchange will be a significant event. Being the first Chinese company to research and develop cancer treatments in a China based pharmaceutical firm; will it be passionately received by investors (institutional and private) over there? As per yesterday’s sp, market valuation of 3.3 billion USD for a company with a good number of drugs in its pipeline, should be really attractive to investors in the second largest economy.
Thanks Davey, for the vital information. Regarding advantage of moving to LSE main listing, I remember reading years ago, on iii b.b, that it would enable many institutional investors to add HCM to their holdings. Such institutional investors are not allowed to buy AIM listed shares due to restrictions in their company policies. Not sure how accurate my memory is. Anybody who used to follow chi med on iii, please feel free to correct. Its another clever strategy by the management of proposed break up of London listed shares into ten shares. Those investors who are put off with a price tag of £48 might show interest if it is fiver!
My HCM shares are held in my stocks ISA. If HCM shares move over to main ftse 250 platform, would it affect investors like me? Investors like myself will be asked to sell the AIM shares and repurchase from the main listing? Another question; what percentage of the £ 3.12 billion market value of HCM is held as AIM shares? If most of HCM held as ADSs, does it matter if a small percentage to be traded on AIM?
Thanks JatW for explaining. When the company listed ADRs on NYSE, no additional/new shares were issued, if I remember correctly. Having not read yesterday’s company news release, properly, I assumed chi-med would be doing the same with its forthcoming HK stock exchange listing. Anyway, it’s a great step taken by the company. Investors from HK /(?and china) will be getting a chance to invest in their ‘own’ biotech company which has marketed the first oncology drug, fully developed in their own country. Well established commercial platform and many drug candidates in the pipeline should have greater positive impact. Wish the listing was done at the same time as the approval for fruquintinib from China authorities. It would have been a wonderful advertisement!
Is the company issuing new shares (400-600 million worth leading to dilution of market valuation) at the time of HK listing? In that case, yesterday’s market reaction should have been different. SP should have dropped significantly. Is the ‘issue’ of shares in addition to CKHH’s sale of part of its holding?
Thanks Davey. Very nice of you for explaining the financial arrangements. Another major advantage to chi-med would be the positive impact on other drugs in the pipeline. Another issue that intrigues me; have you seen the numbers of ‘buys’ of significant quantity of shares after the market closure time? You can check these on ‘shares traded’ link here. Are these buys by institutional traders? It’s nice to see such buys. Who is/are these investors? Reasons for their confidence etc.,? overall looking good.
Oh! Sorry for my ignorance. Didn’t know that aspect of savolitinib. Davey, could please describe, briefly, how chi-med would be benefited, in case, savolitinib gets recognition in oncology therapeutics.
Davey, Thanks for the updates from AACR. Good to know savolitinib has been shown to be a useful combination, therapeutically. From your Friday’s message, “.... I think it is interesting in terms of how much AZ are willing to pay to get rights to the asset. I am not sure it has any direct impact on Savolitinib but it will be interesting to draw parallels in terms of how the market values assets like Savolitinib....” Very interesting! If AZ makes an offer for the rights on savolitinib, it will be a fantastic day for all long term HCM followers.
Over the last few weeks, significant numbers of ‘buys’ were shown on the shares traded link. This was following the ‘sell off’ and share price drop seen in December. Although, I was getting surprised at the level of confidence and optimism of those ‘buyers’, it was a matter of reassurance at the same time. Wondering if the progress report of studies mentioned in today’s news release has got anything to do with the confidence of such buyers! Just hoping!!
Total of 448,000 ADR shares traded yesterday on NYSE , with a small drop in share price. Not sure if that kind of volume is a norm. Hopefully, I am not the only holder having an uneasy feeling of nervousness, before Monday’s results. Consoling factor for me is the large volumes shown as buys in the shares traded link on this site, during the last few days.
Thanks Davey for the additional information. As per the motley fool article, Tagrisso sales in 2018 was $1.9 billion, expected to raise to $5billion by 2022. Imfinzi brought in $633 million in first year, expected to grow to $2.8billion by 2023. Hopefully, Savolitinib (on its own, or in combination with Tagrisso and Imfinzi) will be added to the oncology therapeutics. HCM has many more drugs for oncology and autoimmune disorders in its pipeline. Majority owned by the multinational conglomerate CK Hutchison Holdings, employs 400 scientists and the market valuation is less than $3.5 billion! Which is less than predicted sales of Tagrisso in just one single year, 2022. Difficult to believe.