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Matt, Fair point and clearly I've been too bullish on HCM as it turns out. At the same time , in October the biotech index was strong and the IPO market was strong in the US. Since then both have weakened considerably . As regards valuations, HCM remains cheap and now cheaper still than relative comparitives. We will have to await good drug trials in Q2 2016 and later on to hopefully close this gap. As far as I'm aware, nothing untoward has gone wrong with HCM so I remain invested , albeit 400k underwater on it.
March 29, 2016 7:30 am Chi-Med taps Nasdaq for $100m to help break innovation drought Andrew Ward, Pharmaceuticals Correspondent A $100m Nasdaq flotation has given a fresh impetus to efforts by Hutchison China MediTech to produce the first drug to originate from China for decades. Christian Hogg, Chi-Med chief executive, said the initial public offering, which was completed last week, would support work on two cancer drugs being developed in partnership with AstraZeneca and Eli Lilly as well as several others at earlier stages. More ON THIS TOPIC Chi-Med poised for China drug milestone Chi-Med draws on the past for the future The company, which is 65 per cent-controlled by Li Ka-shing’s CK Hutchison group, is the second Chinese drug developer to list in New York this year after Beigene raised $158m last month. China has not produced a new medicine for the global market since artemisinin for malaria in the 1970s — a breakthrough for which chemist Tu Youyou was awarded a Nobel Prize last year. Mr Hogg said Chi-Med could end this innovation drought if clinical data due this year from a trial of savolitinib — a kidney cancer therapy co-developed with AstraZeneca of the UK — was good enough to file for approval with US regulators. “The Chinese biotech industry is evolving and we are starting to see companies come through,” said Mr Hogg, a Briton who has run the Hong Kong-based company for a decade. “We are in China but we are developing for the global market.” Another drug called fruquintinib for colorectal cancer, co-developed with Eli Lilly, is also in late-stage development and five others are in earlier stage clinical trials. One of the most promising — a treatment called HMPL-523 for blood cancers and rheumatoid arthritis — is a potential rival for blockbuster drugs including AbbVie’s Humira and Imbruvica. Chi-Med’s New York IPO adds to the listing it has had on London’s junior Aim bourse for the past 10 years. Mr Hogg said UK institutional investors would remain the “foundation” of the company but he admitted to frustrations with Aim. “The main reason for the Nasdaq listing is to get in front of specialist biotech investors who can value the Nasdaq listing is to get in front of specialist biotech investors who can value the company properly,” he said. “The issue with Aim is liquidity. Nobody trades shares. As a result, there’s no analyst coverage. When you have a big investor base they need to be able to read analyst research.” Chi-Med raised $101.25m through the sale of 7.5m American Depositary Shares at $13.50 each. The IPO was oversubscribed but priced at a discount to the London share price, reflecting the difficult market conditions which have sharply slowed the flow of IPOs this year. Dozens of European life science companies have listed on Nasdaq ov
Yes, I should be able to make if I can get away from my trading screens .Will let you know closer to the time. Should be a very interesting agm. We are due the PRCC phase II results anytime from April onwards which is probably why they've delayed the listing till now.They will be pivotal to increasing awareness in the US. On your question on the uk price....they should follow but in reality , there's normally always a discount lag in the uk price going forward . Nevertheless, like you , I'm expecting a sharp spike in the uk price once it lists on Thursday. I'm hoping the US Adr will be well over $22 dollars within the next month and stay there, if not higher.
A slight delay in the timings of drug news but we should get before June. Results were fine. As a results of Friday's news , we should have the Nasdaq IPO within 2 months and hopefully much sooner judging by past ipo's from here. Once on Nasdaq, I'm expecting the US biotech investors will be piling into HCM. Matt the Sh..scared , any comment ? Beigene is now up over 34% since its IPO and its more like a start up in comparison to HCM imo.
Having spoken to Mr Hogg, he's assured me its all on track . Beigene IPO is this week so if that goes fine , we should be set fair. Beigene is very poor quality float in comparison to HCM imo so fingers crossed it stays above $24 if the Reuters article is correct.
Beigene ipo priced at top of range it seems.They also have raised more than they were aiming for. http://www.reuters.com/article/beigene-ipo-idUSL2N15I049
Yes, I suppose I am biased having bought in heavily recently so could do without a delay in floating on Nasdaq. The IPO window has closed a bit in the US but not for quality propositions. Tbh, I feel it would be a big mistake to miss this window .With so much big news in the next year,HCM really need to get exposure to US investors and raise money( way more than $100million ) and increase their profile with the FDA as they have intimated they would like to do. They will need that money as well as Phase3 trails are most cost intensive. Sometimes you get just one chance and then the opportunity is lost. So lets hope they grasp their chance and got for it now.
Hutchison China Meditech (LON:HCM) – Buy Yesterday, Hutchison China Meditech (Chi-Med) informed that its joint venture (JV) Shanghai Hutchison Pharmaceuticals Limited (SHPL) has agreed to surrender its remaining 36 years of land-use rights on an old factory site in Shanghai. The site is located at around 12 km from the city, which was rezoned in 2014 from industrial use into a new science and technology, commercial and residential development area called Smart City. SHPL plans to build the new factory in Fengpu district, which is located 40 km south of Shanghai city centre. The cost of new factory is around US$100m, with 80% of it already incurred and funded through cash reserves and bank borrowings of US$38m as at 30th November 2015. SHPL would receive compensation of US$105m from the acquirers. As per the agreement, the amount would be paid in three stages over a span of one year. Our view: This is positive news for Chi-Med as its partners SHPL plan to start a new factory at Fengpu with modern facilities and enhanced efficiencies. Additionally, the company plan to use the funds to pay off debt, distribute dividends to shareholders of SHPL and finance working capital needs. Earlier this week, Hutchison MediPharma Limited (HMP), Chi-Med’s drug R&D subsidiary initiated FALUCA, a Phase III registration study for fruquintinib (HMPL‑013) in third-line non-squamous non-small cell lung cancer (NSCLC) patients in China. Recently, HMP started the Phase I clinical trial of sulfatinib (HMPL-012) in the United States. In addition, the first in-human Phase I clinical trials on HMPL-523 have been positive and in line with its expectations. The drug is useful in various immune system associated diseases, such as autoimmune diseases including rheumatoid arthritis, systemic lupus erythematosus and allergy, as well as haematological cancers including lymphoma and leukaemia. Furthermore, HMP is all set to receive a US$10m payment in Q4 2015 from its partner Eli Lilly. Going forward, HMP plans to start Phase III registration study for the treatment of neuroendocrine tumours and Phase Ib study for the treatment of thyroid cancer by the end of 2015. In light of the overall developments surrounding Chi-Med, we maintain a Buy rating on the stock.
All good news and everything on schedule it seems . Looks like we will have the Nasdaq float in January judging by the lack of news. US biotech investors will absolutely love HCM and I expect them to be clambouring for what is a tightly held stock.
An interesting Bloomberg article ....from June 2015. http://www.bloomberg.com/news/articles/2015-06-18/chi-med-arthritis-drug-spurs-interest-from-potential-partners