HUTCHMED

US: HCM

Market Cap$6247.6m

Last Close $36.14

HUTCHMED (previously Hutchison China MediTech) is an innovative China-based biopharmaceutical company targeting the global market for novel, highly selective oral oncology and immunology drugs. Its established commercial platform business continues to expand its outreach.

Investment summary

HUTCHMED is capitalising on years of investment in its substantial pipeline of oncology and immunology drugs and now has three marketed assets in China. Elunate’s (fruquintinib) inclusion in China’s NRDL significantly increases its accessibility and Sulanda (surufatinib), its first unpartnered asset brought to market, was launched for non-pancreatic NET in January and was recently approved for pancreatic NET. Orphathys (savolitinib) received first-in-class approval for MET exon 14 skipping NSCLC in June and is being commercialised by partner AstraZeneca. HCM expects oncology revenues to grow to $110–130m in FY21 ($30.2m in FY20). Multiple global launches are on the horizon. The US FDA has accepted the NDA for surufatinib in NET (PDUFA date 30 April 2022). With several additional assets moving swiftly through the clinic we expect a series of global launches from the rest of the pipeline between 2023 and 2025. Our forecasts are under review.

Y/E Dec	Revenue (US$m)	EBITDA (US$m)	PBT (US$m)	EPS (c)	P/E (x)	P/CF (x)
2019A	204.9	(141.3)	(141.1)	(15.9)	N/A	N/A
2020A	228.0	(190.6)	(189.7)	(18.0)	N/A	N/A
2021E	N/A	N/A	N/A	N/A	N/A	N/A
2022E	N/A	N/A	N/A	N/A	N/A	N/A

Industry outlook

HUTCHMED is leveraging its established Chinese healthcare business to launch its innovation pipeline products. The clinical, regulatory and technological environments are highly conducive to novel drug development in China. Medium term, investment in global clinical trials should enable it to become a major oncology company globally.

Last updated on 22/09/2021