Edison Issues ADR Update on Hutchison China MediTech (HCM)

Tuesday, February 28, 2017 General News J E 4

LONDON, February 28, 2017 /PRNewswire/ --

Hutchison (HCM) and partner AstraZeneca presented positive preliminary data from the ongoing phase II proof-of-concept trial evaluating savolitinib (c-Met TKI) in papillary renal cell carcinoma (PRCC) at the ASCO GU symposium on 16-18 February. Data presented demonstrate savolitinib's strong anti-tumor activity in MET-driven patients. Importantly, the overall survival (OS) data readout expected later this year could support a US NDA application under breakthrough therapy designation, given the clear unmet need for c-Met-driven PRCC. Our valuation remains unchanged at $2.4bn.

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Our SOTP valuation remains unchanged at $2.4bn ($20.1/ADS). IP is valued at $1,789m and placing the commercial platform's (CP) 2016e share of net profit on a 22.5x rating gives $657m (867p/share). Adding net cash at end June 2016 and netting out unallocated costs results in a value of $2.4bn. Approval(s), clinical data and/or deals should increase our risk-adjusted valuation.

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For more information please contact: Dr Susie Jana                           Edison Investment Research       +44(0)20-3077-5700 Dr Daniel Wilkinson               Edison Investment Research           +44(0)20-3077-5734 Contact details: Learn more at and connect with Edison on:   LinkedIn Twitter YouTube Google+

SOURCE Edison Investment Research



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