Edison Issues Re-initiation on Hutchison China MediTech

USA Profile Username: jon@newsinnovations.com / edit profile Edison Issues Re-initiation on Hutchison China MediTech PR Newswire LONDON, May 27, 2016 LONDON, May 27, 2016 /PRNewswire/ -- Hutchison China MediTech (Chi-Med) (HCM) is an innovative biopharma company focused on the highly lucrative global oncology and immunology markets. HCM has built a substantial pipeline of potential first-in-class or best-in-class tyrosine kinase inhibitor (TKI) drugs, some of which are in development with strategic partners. HCM's profitable Chinese healthcare business continues to benefit from the fast-growing domestic market. We expect progress of the mid-to-late-stage pipeline during 2016-17 (including US and China regulatory filings) to catapult the company into the international spotlight. We re-initiate with a value of $2.3bn, or £25.8 share.      (Logo: http://photos.prnewswire.com/prnh/20130417/608168 ) Our sum-of-the-parts valuation uses an rNPV model for the IP unit and earnings-based multiples for the profitable CP unit. IP is valued at $1,712m; placing CP's 2016e share of net profit on a 22.5x rating gives $657m (722p/share). Adding in net cash and netting out unallocated costs results in a value of $2.3bn (£25.75/share). 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 international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. 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. 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 Contact details: Dr Susie Jana, Edison Investment Research, +44-(0)20-3077-5736, healthcare@edisongroup.com Follow Us To change the settings for your profile(s) or email delivery, go to https://prnmedia.prnewswire.com/profile/?action=editProfile and select the profile you would like to edit. You can select the industries, subjects, languages, geographical areas, companies, delivery options and delivery frequencies of your choice. In addition to current press releases, you can also find archived news, corporate information, photos, tradeshow news and much more on the PR Newswire for Journalists website: https://prnmedia.prnewswire.com To contact us, email: mediasite@prnewswire.com Please do not reply to this email; this is an automatically generated message. Copyright © PR Newswire Association LLC. All Rights Reserved. A UBM plc company. Our mailing address is: 350 Hudson Street, Suite 300 New York, NY 10014-4504