Hutchison China MediTech - Surufatinib NETs solid data at ESMO

Hutchison China MediTech (HCM) presented robust SANET-ep Phase III China data at ESMO 2019 on surufatinib in non-pancreatic neuroendocrine tumours (NET). The data support a China NDA submission (imminent), with surufatinib likely to be the first of HCM’s non-partnered assets to reach the market (late 2020). NET tumours are highly prevalent, fragmented in primary origin and are an unmet medical need. Surufatinib could be the first universal drug to treat NET in all patients regardless of tumour subtype; the SANET-p Phase III data in (pancreatic NET H120), is critical to widening its market potential. The global (US and Europe) registration Phase III study is planned for H120. CK Hutchison Holdings (CKHH) reduced its holding by 1.3% to below 50% (49.9%). We see this as a significant positive as it removes the significant overhang on the shares. We value HCM at $5.7bn.