Hutchmed Regulatory News (HCM)

17 Jul 2006 07:00

Hutchison China Meditech Limited17 July 2006 For Immediate Release Hutchison China MediTech Limited ("Chi-Med") (AIM: HCM) Trading Update Hutchison China MediTech Limited ("Chi-Med") today issues a trading updatereporting that revenues for the first six months of 2006 are estimated at US$ 32million, an increase of 86% versus the US$ 17 million the same period in 2005.Full interim results for the six months ended 30 June 2006 are expected inAugust. China Healthcare Business The sales of Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine CompanyLimited ("Hutchison Baiyunshan") have grown more rapidly than expected in 2006driven by demand for Ban Lan Gen granules, an OTC anti-viral, which has becomeincreasingly popular due to consumer concerns over avian flu as well as aparticularly severe flu season in South China. Hutchison Baiyunshan has alsobenefitted from strong 2006 sales of Fu Fang Dan Shen tablets for angina asdistribution in secondary towns and rural China deepens and highly effectivepublic relations and marketing programmes have driven consumption. Shanghai Hutchison Pharmaceuticals Limited ("Shanghai HutchisonPharmaceuticals") is maintaining sales versus 2005 despite two recent State Foodand Drug Administration ("SFDA") policy shifts that are expected to negativelyimpact operations in the short-term. Firstly, the China SFDA recently began tolimit the sale of Shanghai Hutchison Pharmaceuticals' third largest productSheng Mai injection, an immune-modulator, to emergency use only. Secondly,China's Central Government recently announced an all out ban on the use ofhospital medical representatives, thereby leading all ethical drug firms tore-consider their commercial strategy. Fortunately, Shanghai HutchisonPharmaceuticals is adapting fast and the performance of its top two products She Xiang Bao Xin pills, for heart disease, and Dan Ning tablets, for gallbladder inflammation, is well ahead of 2005. Hutchison Healthcare Limited ("Hutchison Healthcare") has had a disappointingpeak examination season on Nao Ling Tong capsules ("NLT"), the memorysupplement. After sales growth of 78% and 64% on NLT in 2004 and 2005,Hutchison Healthcare's rapid expansion has led to diluted executionaleffectiveness in NLT's schools-focused marketing programme and ultimately hasled to flat NLT sales in 2006. Hutchison Healthcare will launch two importantnew initiatives behind the NLT brand and schools channel in the second half of2006. During the first half of 2006 the Chi-Med Management Team has continued in theidentification, approach, and negotiation of M&A deals on target healthcarecompanies in China to broaden our operations in the fast growth industry.Discussions are currently underway with several targets, some of which arelarge-scale. Drug Research & Development Business Hutchison MediPharma Limited ("Hutchison MediPharma") has evolved during thepast two years from a botanical drug focused company into a highly sophisticatedand productive single molecular entity discovery operation. During the first six months of 2006, Hutchison MediPharma continued to build newin vitro assay platforms (to a total of 42) and in vivo models (a total of 58)in the oncology and auto-immune areas. Hutchison MediPharma's 82-personresearch team performed thousands of assays in screening substances, most ofwhich were single entities either synthesized or isolated from botanical andTraditional Chinese Medicine sources by Hutchison MediPharma. This screeningidentified over 150 hits, which in turn has led to four lead candidates and fivequalified hits in the fields of oncology and auto-immune diseases. On the development side, Hutchison MediPharma is progressing well. Clinicaltrials on HMPL-002, a cancer product, in the United States (head & neck cancer)and China (non-small cell lung cancer) progress to plan. As recently announced,the US Food and Drug Administration has allowed Hutchison MediPharma to amendthe HMPL-002 protocol to include its use in combination with platinum-basedchemoradiotherapy versus the previous plan of radiotherapy alone. Clinical trials on HMPL-004, an inflammatory bowel disease product, in theUnited States (Crohn's disease) and China (ulcerative colitis) are ahead ofrecruitment targets with lower than anticipated dropout rates. Consumer Products Business Sen Medicine Company Limited ("Sen") sales are on track to increase overthree-fold in 2006 compared to the same period in 2005 and same store sales (forstores open more than one year) increased 21% during the first half of 2006compared to the same period in 2005. The May 2006 launch of a range of high-endSen skin care products has been well received and represents a good opportunityto broaden distribution to third party retailers. End Enquiries Chi-MedChristian Hogg, CEOTelephone: +852-2121-8200www.Chi-Med.com Citigate Dewe RogersonTelephone: +44 (0)20 7638 9571Anthony Carlisle (Mobile: 07973 611 888)Chris Gardner (Mobile: 07903 737 649) About Chi-Med Chi-Med is the holding company of a pharmaceutical and healthcare group basedprimarily in China and is listed on the Alternative Investment Market of theLondon Stock Exchange plc. Chi-Med is majority owned by Hutchison Whampoa Limited, an internationalcorporation listed on the Main Board of The Stock Exchange of Hong Kong Limited. This information is provided by RNS The company news service from the London Stock Exchange