Hutchison China Meditech: Future Stars Are Aligning
Edison | May 11, 2017 05:42AM ET
Despite a strong run over the last 12 months, our increased valuation of $2.7bn suggests the market overlooks Hutchison China MediTech’s (NASDAQ:HCM) full R&D potential. Multiple catalysts are on the horizon in 2017/18; notably the China FDA filing for fruquintinib in CRC (full Phase III CRC data [China] at ASCO) and overall survival data from the savolitinib Phase II trial in c-Met-driven PRCC (could support a US NDA submission). Further progress of the early to mid-stage pipeline over time should retain investors focus. Ultimately, HCM’s move to commercialise its innovative pipeline in its domestic market (and longer term in international territories) could provide a major source of uplift.
2017/18: Future stars are aligning
HCM and Lilly will submit the fruquintinib CRC China NDA in mid-2017; full data from the FRESCO trial will be presented at ASCO on 5 June 2017. Depending on the strength of the NDA submission packages and speed of China FDA, fruquintinib could launch in China in 2018. Phase II overall survival data on savolitinib in c-Met-driven PRCC later this year could support a US NDA application under breakthrough therapy designation, with potential to be HCM’s first internationally launched asset (we expect launch in the US in 2018 by partner AstraZeneca, we assume under breakthrough therapy designation).
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