Hutchison China MediTech


£2833m market cap

361.5p last close

Hutchison China MediTech (HCM) is an innovative China-based biopharma company targeting the global market for novel, highly selective oral oncology and immunology drugs. Its established China Healthcare business is growing ahead of the market. HCM is the healthcare arm of CK Hutchison (c 40% listed on AIM and NASDAQ).

Investment summary

Hutchison China MediTech (HCM) has built a substantial pipeline of potentially first-in-class or best-in-class tyrosine kinase inhibitor (TKI) drugs, some of which are in development with strategic partners. HCM has announced positive data that key late-stage asset surufatinib met the primary endpoint of PFS in non-pancreatic NET at the Phase III interim analysis.This translates into an earlier than expected China NDA submission (H219) and the potential launch of HCM’s first unpartnered asset (early 2021). We forecast two further product launches on the horizon in 2021/22 (China launch of fruquintinib in gastric cancer and global launch of savolitinib in NSCLC). CKH has completed a secondary offering of ADSs, which has reduced its holding to 51.15% (from 60.2% previously) and increased the free float. At 30 April 2019, HCM had net cash of $236.2m.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 241.2 (50.7) (53.5) (4.3) N/A N/A
2018A 214.1 (89.0) (86.7) (11.3) N/A N/A
2019E 182.9 (167.8) (170.5) (21.2) N/A N/A
2020E 194.4 (166.4) (172.6) (21.3) N/A N/A
Industry outlook

HCM’s profitable Chinese healthcare business continues to benefit from the fast-growing domestic market, while the clinical, regulatory and technological environments are highly conducive to novel drug development. In the longer term, if the oncology and immunology pipeline comes to fruition, we expect HCM to become a major Chinese and international oncology company.

Last updated on 04/07/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 139.5
Forecast gearing ratio (%) N/A
Price performance
Actual 1072.4 894.2 804.3
Relative* 1061.2 877.0 864.7
52-week high/low 5600.0p/3305.0p
*% relative to local index
Key management
Simon To Chairman
Christian Hogg CEO
Johnny Cheng CFO
Dr Weiguo Su Chief Scientific Officer
Mark Lee SVP, Corporate Fin & Dev.

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