HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>HUTCHMED entered into an exclusive license agreement with Takeda- HUTCHMED will receive up to US$1.13 billion including US$400 million upfront, the third highest upfront among China’s TOP 10 license-out deals.</li>
<li>Even if fruquintinib may probably not become a blockbuster product in the future, HUTCHMED still gets a decent upfront to relieve its cash flow pressure and an internationalization admission ticket.</li>
<li>
<a href="https://www.smartkarma.com/entities/hutchmed-china-ltd" target="_blank" data-smartkarma-citation="entities:133:1" rel="noopener">Hutchmed China Ltd (13 HK) </a>is undervalued based on our sales forecast. After savolitinib has been included in the updated NRDL, this year’s performance growth is worth looking forward to.</li>
</ul>


HUTCHMED entered into an exclusive license agreement with Takeda- HUTCHMED will receive up to US$1.13 billion including US$400 million upfront, the third highest upfront among China’s TOP 10 license-out deals.
Even if fruquintinib may probably not become a blockbuster product in the future, HUTCHMED still gets a decent upfront to relieve its cash flow pressure and an internationalization admission ticket.

Hutchmed China Ltd (13 HK) is undervalued based on our sales forecast. After savolitinib has been included in the updated NRDL, this year’s performance growth is worth looking forward to.


Hutchmed China Ltd (13.HK/HCM.US) - The $1.13B Eye-Catching Deal with Takeda and the New Outlook

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>Takeda announced Monday that it has entered into an exclusive licensing agreement with HUTCHMED (China) for further development and commercialisation of Fruquintinib outside of Mainland China, Macau and Hong Kong.</li>
<li>Takeda will pay HUTCHMED $400m upfront and up to $730m in additional potential payments relating to regulatory, development and commercial sales milestones, as well as royalties on net sales.</li>
<li>Fruquintinib was approved in China in 2018, is a highly selective, oral VEGFR1/2/3 Tyrosine Kinase Inhibitor and offers potential new treatment option for patients with refractory metastatic colorectal cancer (CRC).</li>
</ul>


Takeda announced Monday that it has entered into an exclusive licensing agreement with HUTCHMED (China) for further development and commercialisation of Fruquintinib outside of Mainland China, Macau and Hong Kong.
Takeda will pay HUTCHMED $400m upfront and up to $730m in additional potential payments relating to regulatory, development and commercial sales milestones, as well as royalties on net sales.
Fruquintinib was approved in China in 2018, is a highly selective, oral VEGFR1/2/3 Tyrosine Kinase Inhibitor and offers potential new treatment option for patients with refractory metastatic colorectal cancer (CRC).


Takeda Strengthens Oncology Portfolio with HUTCHMED’s Fruquintinib Acquisition

Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>In terms of geography, Japan is still our top pick, primarily due to attractive multiple, favorable Fx, and low leverage. Despite macroeconomic headwinds, Australia biotech is another area of interest.</li>
<li>Among our four top picks, Gland Pharma reported year-over-year decline across all parameters during Q2FY23 due to supply woes. Near-term outlook is uncertain.</li>
<li>Apollo Hospitals reported strong quarterly performance, with all operating parameters improving year-over-year. Olympus remained a prime beneficiary of weak yen, while Samsung Biologics’ robust order book entail visibility.</li>
</ul>


In terms of geography, Japan is still our top pick, primarily due to attractive multiple, favorable Fx, and low leverage. Despite macroeconomic headwinds, Australia biotech is another area of interest.
Among our four top picks, Gland Pharma reported year-over-year decline across all parameters during Q2FY23 due to supply woes. Near-term outlook is uncertain.
Apollo Hospitals reported strong quarterly performance, with all operating parameters improving year-over-year. Olympus remained a prime beneficiary of weak yen, while Samsung Biologics’ robust order book entail visibility.


APAC Healthcare Series (Part 4)- Japan Continues to Be in a Sweet Spot; Top Picks Quarterly Update

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>This is our first report on Japanese pharma major, Takeda Pharma.</li><li>A significant pipeline milestone was achieved by the company when TAK-003, the dengue vaccine candidate of the company, received approval.</li><li>Dr.</li></ul>

This is our first report on Japanese pharma major, Takeda Pharma.A significant pipeline milestone was achieved by the company when TAK-003, the dengue vaccine candidate of the company, received approval.Dr.

Takeda Pharma ADR: Initiation of Coverage – Recent Drug Updates & Key Drivers

<ul>
<li>Takeda’s dengue vaccine TAK-003/QDENGA has been approved in Indonesia and is awaiting consent from the EU. The company is also seeking approval from the US, Latam and other Asian countries.</li>
<li>The company plans to launch the vaccine in December or early next year which will become the industry’s first immunisation against dengue after the problems faced by Sanofi’s Dengvaxia.</li>
<li>In this insight, we take a look at <a href="https://www.smartkarma.com/entities/takeda-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:11747:1" rel="noopener">Takeda Pharmaceutical (4502 JP)</a> 's decade long journey into its dengue vaccine and its potential.</li>
</ul>


Takeda’s dengue vaccine TAK-003/QDENGA has been approved in Indonesia and is awaiting consent from the EU. The company is also seeking approval from the US, Latam and other Asian countries.
The company plans to launch the vaccine in December or early next year which will become the industry’s first immunisation against dengue after the problems faced by Sanofi’s Dengvaxia.
In this insight, we take a look at Takeda Pharmaceutical (4502 JP) 's decade long journey into its dengue vaccine and its potential.


Takeda: A Deep Dive into Takeda’s Dengue Vaccine

Japan

Takeda Pharmaceutical Co Ltd focuses on the Research & Development, Manufacturing, Sales and Marketing and Import/Export of Pharmaceutical Drugs. The Company focuses on the following core therapeutic areas: Cardiovascular & Metabolic, Oncology, Central Nervous System, Respiratory & Immunology, General Medicine (Gastrointestinal & Genitourinary) and Vaccine.

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Takeda Pharmaceutical (4502 JP)

Hutchmed China Ltd (13.HK/HCM.US) - The $1.13B Eye-Catching Deal with Takeda and the New Outlook

HUTCHMED/Takeda $1.13 billion license agreement is very worthy of learning.Together with savolitinib's inclusion in new NRDL,2023 performance...

Xinyao (Criss) Wang

Takeda Strengthens Oncology Portfolio with HUTCHMED’s Fruquintinib Acquisition

Takeda's exclusive licensing agreement with HUTCHMED for further development and commercialisation of Fruquintinib should help its oncology biz...

Shifara Samsudeen, ACMA, CGMA

APAC Healthcare Series (Part 4)- Japan Continues to Be in a Sweet Spot; Top Picks Quarterly Update

Japan healthcare companies with high export revenue, continue to benefit from favorable Fx. Three of our top picks reported strong quarterly...

Tina Banerjee

Takeda Pharma ADR: Initiation of Coverage – Recent Drug Updates & Key Drivers

This is our first report on Japanese pharma major, Takeda Pharma. A significant pipeline milestone was achieved by the company when TAK-003, the...

Baptista Research

Takeda: A Deep Dive into Takeda’s Dengue Vaccine

As Takeda prepares to launch its dengue vaccine QDENGA, we take a look at the company's journey into dengue research, Sanofi's fiasco and the...

Shifara Samsudeen, ACMA, CGMA

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