Health and Healthcare

Hutchinson China MediTech Sets Price for US IPO

Chris Lange

Published: March 17, 2016 1:40 pm

Last Updated: January 13, 2020 11:48 am

Hutchinson China MediTech has announced the pricing of its U.S. public offering of its American depositary shares (ADSs). There are 7.5 million ADSs available in the offering with an overallotment option for an additional 1.125 million ADSs. The offering price was set at $13.50 per ADSs, which valued the entire offering up to $116.44 million. The company intends to list its ADSs on the Nasdaq Global Market under the symbol HCM.

The underwriters for the offering are Merrill Lynch, Deutsche Bank, Stifel, Canaccord Genuity, Panmure Gordon and CITIC CLSA.

This innovative biopharmaceutical company is based in China and aims to become a global leader in the discovery, development and commercialization of targeted therapies for oncology and immunological diseases.

Hutchinson China MediTech has created a broad portfolio of drug candidates targeting eight molecular targets. It has taken a chemistry-focused approach to develop highly selective small molecule tyrosine kinase inhibitors that are intended to have potentially global best-in-class efficacy and are deliberately engineered to improve drug exposure, reduce known class-related toxicities and allow different drug therapies to be combinable. Highlights of its pipeline include:

• Seven clinical-stage drug candidates, five of which have already achieved proof-of-concept (meaning positive outcome achieved in Phase 1b/2 studies), with multiple potential global first-in-class or breakthrough therapy opportunities, which means that such drug candidates could be eligible for accelerated approval by the U.S. Food and Drug Administration (FDA).
• Out of these seven drug candidates, four are wholly owned and three are partnered with leading pharmaceutical companies, AstraZeneca, Eli Lilly and Nestlé Health Science.
• Nineteen active clinical trials in various countries, with a further six planned to start during the first quarter of 2016.
• Three Phase 3 clinical trials currently enrolling, with a fourth expected to start during the first quarter of 2016.
• Subject to favorable clinical outcomes, two drug candidates, savolitinib and fruquintinib, are targeted to be submitted for new drug application (NDA) approval in late 2016 in the United States and China.

The company intends to use the net proceeds from this offering to further develop and commercialize its pipeline. The remainder will be used for working capital and general corporate purposes.