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Edison Issues ADR Update on Hutchison China MediTech (HCM)

Tuesday, February 28, 2017 General News J E 4
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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.

     (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

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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http://www.edisoninvestmentresearch.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

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 healthcare@edisongroup.com Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:   LinkedIn    http://www.linkedin.com/company/edison-investment-research Twitter    http://www.twitter.com/Edison_Inv_Res YouTube    http://www.youtube.com/edisonitv Google+    https://plus.google.com/105425025202328783163/posts

SOURCE Edison Investment Research

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