Futu News, June 18, this Friday.$HUTCHMED (China) Limited (00013.HK) $According to the announcement, the company intends to issue about 104 million shares from June 18 to 23, including a public offering of about 13 million shares and an international offering of about 91 million shares at an issue price of HK $45 ≤ per share, which is expected to be listed on June 30.

It is reported that the company is a global biomedical company in the commercial stage, focusing on the discovery, development and commercialization of targeted therapy and immunotherapy for cancer and immune diseases. And Huang China Pharmaceutical has been listed on the NASDAQ in the United States and the London Stock Exchange in the United Kingdom.

In addition to the oncology ╱ immunization business, the company's other businesses have established large-scale and profitable drug marketing and distribution capabilities, mainly in the production, marketing and distribution of prescription drugs in China.

In 2018, fuquitinib was approved for the treatment of third-line mCRC patients, making HUTCHMED (China) Limited the first Chinese biomedical company to bring independent research and development and innovative antineoplastic drugs to unconditional approval and listing. Since then, the company has set up an oncology commercialization team of about 520 employees in China to market fuquitinib and other approved products. In early 2021, the business team launched the company's second oncology drug, sovantinib, for the treatment of advanced non-pancreatic NET. The third drug independently developed by the company is Sevotinib, which is used to treat lung cancer. The drug is currently under final regulatory review and is expected to be approved for market in China as early as mid-2021. The other seven tumor drug candidates are currently in the early stage of clinical development in China, one of which will transition to the II Phase II intention study in April 2021, and the other aims to transition to the II Phase II intention study in 2021.

In 2018, 2019 and 2020, the company's total revenue was $214 million, $205 million and $228 million, respectively, and the net loss was $71.286 million, $106 million and $126 million, respectively.

In terms of industry, China's oncology drug market has grown rapidly in recent years and is expected to maintain a high growth rate in the near future, rising to US $30.4 billion in 2020 and accounting for 13.6% of China's pharmaceutical market, with a compound annual growth rate of 12.1%. The annual double-digit growth rate is expected to be maintained between 2020 and 2030, and the market is expected to reach 105.1 billion US dollars in 2030, accounting for 22.8% of China's pharmaceutical market.

As for cornerstone investors, the company has entered into cornerstone investment agreements with five cornerstone investors, namely, The Carlyle Group Inc., Canadian Pension Fund Investment Corporation, Pan-Atlantic Investment Group, HBM Healthcare Investments and CICC Capital Fund. Cornerstone investors have agreed to subscribe for the offer shares at a total subscription price of about HK $2.535 billion as part of the international offering.

In terms of fund-raising purposes, the company intends to use the net proceeds from the global sale for the following purposes: about HK $2.22 billion will be used to advance the late clinical plans of Sevotinib, Sovantinib, fuquitinib, HMPL-689 and HMPL-523 for registration trials and potential submission of NDA applications About HK $445 million will be used to support further proof-of-concept research and to fund internal research to continuously expand the company's cancer and immune disease product portfolio, including the cost of developing early clinical and preclinical drug candidate pipelines; about HK $888 million will be used to further enhance the company's comprehensive strength in commercialization, clinical, regulatory and production About HK $666 million will finance potential global business development and strategic acquisition opportunities to complement the company's internal R & D activities and upgrade the company's current drug candidate pipeline.