In a report released yesterday, Cyrus Ng from Deutsche Bank upgraded HUTCHMED (HCM – Research Report) to a Buy, with a price target of $22.10.
Cyrus Ng’s Buy rating for HUTCHMED relies on a number of key factors.
One of the main reasons for the positive rating is the company’s successful expansion into overseas markets, especially following the approval of Fruquintinib by the US FDA. This move has not only validated HUTCHMED’s capabilities but also dispelled previous uncertainties about its potential for international growth, especially after the initial rejection of the Surufatinib application in 2022. The approval of Fruquintinib, coupled with the support of Takeda, has allowed HUTCHMED to rapidly tap into the overseas market, with the first prescription being issued just 48 hours post-official approval.
The company has also shown promising signs of further global and domestic expansion. Applications have been filed with the European Medicines Agency and Japan’s Ministry of Health for Fruquintinib, with approval expected in 2024. Moreover, there are plans to file further applications in China and internationally for Savolitinib. Alongside this, HUTCHMED is set to launch two new products in 2024, Sovleplenib and Amdizalisib, which are expected to add new growth momentum to the company. The retention of global rights for major clinical assets except for Fruquintinib and Savolitinib, also plays into the positive forecast for HUTCHMED.
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HUTCHMED (HCM) Company Description:
Hutchison China MediTech Ltd. is a holding company, which engages in the research and development, manufactures, and sells pharmaceuticals and health oriented consumer products. It operates through the Innovation Platform and Commercial Platform segments. The Innovation Platform segment relates to research and development of innovative therapeutics in oncology and autoimmune diseases. The Commercial Platform segment relates to prescription drugs which develops, manufacture, markets, and sale of prescription pharmaceuticals; and consumer health which comprised of development, manufacture, distribution, and marketing of over-the-counter pharmaceuticals, and consumer health products. The company was founded in June 2000 and is headquartered in Hong Kong.
Read More on HCM:
- HUTCHMED Announces that Takeda Receives U.S. FDA Approval of FRUZAQLA™ (fruquintinib) for Previously Treated Metastatic Colorectal Cancer
- HUTCHMED Highlights Clinical Data to be Presented at ESMO Congress 2023
- Hutchmed announces Takeda submits fruquintinib NDA to Japan MHLW
- HUTCHMED Announces Submission of New Drug Application for Fruquintinib for Previously Treated Metastatic Colorectal Cancer in Japan
