LONDON, May 11, 2017 /PRNewswire/ --
Despite a strong run over the last 12 months, our increased valuation of $2.7bn suggests the market overlooks HCM's 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 commercialize its innovative pipeline in its domestic market (and longer term in international territories) could provide a major source of uplift.
(Logo: http://photos.prnewswire.com/prnh/20130417/608168 )
We have increased our SOTP valuation to $2.7bn ($22.6/ADS) from $2.4bn ($20.1/ADS), in the main due to progress in the R&D pipeline and upgrades to our CP forecasts after a stronger than anticipated FY16. The Innovation Platform is valued at $1,948.6m from $1,789m and placing CP's 2017e share of net profit on a 23.6x rating gives $788.8m ($6.5/ADS). Adding December 2016 net cash and netting out unallocated costs results in a value of $2.7bn. Approval(s), clinical data and/or deals should increase our risk-adjusted valuation.
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website: 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.
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
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 [email protected]
SOURCE Edison Investment Research
Advertisement
Despite a strong run over the last 12 months, our increased valuation of $2.7bn suggests the market overlooks HCM's 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 commercialize its innovative pipeline in its domestic market (and longer term in international territories) could provide a major source of uplift.
Advertisement
(Logo: http://photos.prnewswire.com/prnh/20130417/608168 )
We have increased our SOTP valuation to $2.7bn ($22.6/ADS) from $2.4bn ($20.1/ADS), in the main due to progress in the R&D pipeline and upgrades to our CP forecasts after a stronger than anticipated FY16. The Innovation Platform is valued at $1,948.6m from $1,789m and placing CP's 2017e share of net profit on a 23.6x rating gives $788.8m ($6.5/ADS). Adding December 2016 net cash and netting out unallocated costs results in a value of $2.7bn. Approval(s), clinical data and/or deals should increase our risk-adjusted valuation.
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website: 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.
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
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 [email protected]
SOURCE Edison Investment Research
