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Hutchison China MediTech announces Interim Results for the Six Months Ended 30 June 2014 [Global Data Point](Global Data Point Via Acquire Media NewsEdge) Chi-Med Group results are reported under International Financial Reporting Standard, IFRS 11 "Joint Arrangements" ("IFRS11"), which requires the equity accounting principle for the reporting of joint ventures ("JVs") which means that the income statements and statements of financial position of JVs are not proportionately consolidated as they have been in the past. However, total revenues of the JVs will continue to be disclosed on a voluntary basis under the divisional summaries below. Results are reported in US dollar currency unless otherwise stated. Group Results • Revenue, under IFRS11, on continuing operations up 73% to $30.3 million (H1 2013: $17.6m). • Net profit attributable to Chi-Med equity holdersup 97% to$6.4 million (H1 2013: $3.3m). • Stable cash position: cash and cash equivalents at the Chi-Med Group level of $59.4 million (31 December2013: $46.9m); in addition, and not included at Chi-Med Group level, cash and cash equivalents held at the JV level of $91.6 million (31 December 2013: $99.0m). China Healthcare Division • Total sales of subsidiaries and JVs up 15% to $261.7 million (H1 2013: $227.5m). • Net profit attributable to Chi-Med equity holders up 20% to $17.3 million (H1 2013: $14.4m). • Commercial restructure complete - Good Supply Practice ("GSP") distribution companies now in place to enable the 2,700-person commercial team to sell third party/related party products. • China low-price drug policy and key raw material price declines providing profitability tailwind. Drug R%7ED Division • Revenue of $9.9 million (H1 2013: $10.5m) from an AZD6094 (HMPL-504/volitinib) development milestone and service income from Nutrition Science Partners Limited ("NSP") and Janssen Pharmaceuticals Inc. (part of the Johnson %7E Johnson group of companies) ("Janssen"). • Net loss attributable to Chi-Med equity holders up 31% to $6.3 million (H1 2013: -$4.8m) due to continuing NSP investment in HMPL-004 global Phase III registration trials. • 10 clinical trials progressing rapidly and building value. 2 Phase III registration studies on HMPL-004 in ulcerative colitis (NATRUL-3 and NATRUL-4); 3 Phase II proof-of-concept studies (AZD6094 in papillary renal cell carcinoma and fruquintinib in third-line colorectal and non-small cell lung cancer); 3 Phase Ib expansion studies (AZD6094 non-small cell lung cancer, sulfatinib in neuroendocrine tumours, and epitinib in non-small cell lung cancer with brain metastasis); and 2 Phase I studies (HMPL-523/Syk inhibitor for inflammation and theliatinib in solid tumours). • Spending of $19.8 million (H1 2013: $15.2m) on clinical trials balanced by aggregate $20.1 million (H1 2013: $38.1m) cash and equity injections and contractual obligations from partners received by Drug R%7ED Division subsidiaries and JVs. Consumer Products Division • Sales from continuing operations up 16% to $6.4 million (H1 2013: $5.5m) from expansion of the broad organic and natural product line of Hutchison Hain Organic Holdings Limited ("Hutchison Hain Organic"). • Breakeven net profit on continuing operations attributable to Chi-Med equity holders of $0.0 million (H1 2013: -$0.4m). Christian Hogg, CEO of Chi-Med, said: "Chi-Med has significantly increased its net profit at a time when it is managing 10 clinical trial programmes and maintaining a deep and active discovery research programme, which together is adding substantial shareholder value. This is an achievement which is testimony to the balance of our businesses, our common sense approach to financing and our strategy of collaboration with powerful industry partners to help accelerate and enhance our own programmes. We expect to continue adding significant shareholder value in the second half and beyond." (c) 2014 GlobalData Provided by SyndiGate Media Inc. (Syndigate.info). |