Hutchison China MediTech Limited (NASDAQ:HCM) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:00 am ET


Hutchison China MediTech Limited (NASDAQ:HCM) Q2 2020 Earnings Conference Call - Final Transcript


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Mr. Christian Hogg

Okay. This is Christian Hogg, CEO of Chi-Med. Welcome to the Interim 2020 First Half Results. On the line today, we have myself. I have Dr. Wei-Guo Su, our Chief Scientific Officer; and I have Johnny Cheng, our Chief Financial Officer. So if we go straight to the presentation. What I'm going to do is spend maybe 25, 30 minutes on the presentation and then leave half an hour for questions at the end. So starting on page three. The overall strategy of the business remains very well established. But I think page three sums it up very clearly, even more so than perhaps in the last couple of years. We are obviously trying to build a global science-focused biopharmaceutical company from our established base in China. But really, the two key focus areas are realizing the global potential of our novel oncology assets. So building out our global team to maximize the potential of those programs. And then the second area is really building out our fully integrated oncology business in China.

So as we go through the presentation, you'll see how we are working on both of these areas. And I mean, really, we're one of very few companies in China aspiring to bring their homegrown innovations from China to the global market. So I think that sets us apart very significantly from many of the biotechs in China today. If you go to page four. High level look at the strengths of Chi-Med that have been built up over the last 20 years. They're all self-explanatory. But I think in the top left-hand corner there are world-class discovery development organization led by Wei-Guo. It's now up to over 550 full-time people in our scientific team in Shanghai, Suzhou. And we have, as you see on the top right-hand side there, been able, over the last 15-or-so years to create a highly differentiated portfolio of global assets, nine of which are in clinical trials at the moment. We just started with our IDH 1/2 dual inhibitor just last week in Phase I in China. And our three lead assets, as most of you know, are either approved or at NDA filing. I think the bottom right-hand corner, and we'll talk about it later with regards to the announcement we made yesterday around our increased role in the commercialization of Elunate in China, but our commercial platform in China is extremely strong, very deep and great know-how. You'll see we've now built out our oncology team to over 320 people in readiness for both taking over that commercial activity on Elunate as well as launching surufatinib late this year. And then in the bottom left-hand corner, you can see the team, and I'll show we'll talk about the team a bit later, but the median tenure with Chi-Med of the 14-person senior management team is 11 years. It's a very stable large team. It's expanding quickly as we grow but a very powerful group of people that are very committed