HUTCHMED

US: HCM

Market Cap$4580.3m

Last Close $30.76

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 has now launched two assets in China: Elunate’s (fruquintinib capsules) inclusion in China’s NRDL significantly increases the addressable market and Sulanda (surufatinib), recently launched for non-pancreatic NET with approval for pancreatic NET expected later in 2021. Sulanda is HCM’s first unpartnered asset brought to market. Savolitinib’s first approval and launch is expected mid-2021 in China for MET exon 14 skipping NSCLC. Multiple global launches are on the horizon. The US FDA has granted fast track designations for surufatinib in epNET and pNET (rolling NDA submission completed May 2021). With a number of 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 is 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 HUTCHMED to become a major oncology company globally.

Last updated on 11/06/2021