Hutchison China MediTech (Chi-Med) is a China-based, globally-focused healthcare group which researches, develops, manufactures and sells pharmaceuticals and health-related consumer products. The Company offers drugs for oncology and autoimmune diseases treatment for global markets.
In today’s Meet the CEO segment Christian Hogg, CEO of Chi-Med addresses number of questions ranging from long-term financing needs, R&D plans, & future business prospects. The segment is hosted by Panmure Gordon’s David Buik and Simon French.
Chi-Med raised $101.25m through the oversubscribed sale of 7.5m American Depository Shares at $13.50 each. Hogg does not ruled out futures funds raising efforts but stresses the fact that its China business is generating lot of cash for funding its business. The other source of cash is partnership with AstraZeneca and Eli Lilly.
Expansion plans are largely centered around getting more out of existing products. Another area is innovation.
Being in China is a location advantage
Lessons learnt while transitioning from China to US/global markets
Hogg says, there is lot of cynicism about Chinese companies given the high number of failures. Hence, the firm has compensated the lack of trust by keeping total focus on transparency. “Our financial reports are more detailed than even western companies…this helps us compensate lack of trust”.
Communication is equally important. We doubled down on transparency and communication and in educating investors about who we are and what we do.
Oncology innovations will be launched on our own. We will never give our china right again. Outside China partnering is absolutely the right way to go.
Future is brighter than ever
Savolitinib – Chi-Med could end the innovation drought if clinical data due in early 2017 from a trial of Savolitinib – a kidney cancer therapy co-developed with AstraZeneca of the UK.
Fruquintinib – for colorectal cancer, co-developed with Eli Lilly, is also in late-stage development.
Chi-Med seeks self starters with specific experience
Simon French asked Hogg the key qualities he looks for in an individual while employing him/her for higher positions, Hogg replied, “We look for self starters with specific experience, someone who can take load off me…someone with passion for what we do”.