SBCVC Investment in MediPharm

RNS Number : 3387Y

Hutchison China Meditech Limited

21 December 2010

 



Hutchison China MediTech Limited ("Chi-Med")
(AIM: HCM)

Hutchison MediPharma Receives Further Strategic Investment to Advance Its Pipeline

London: Tuesday, 21 December 2010:  Chi-Med, the pharmaceutical and healthcare company, based primarily in China, today announces that its subsidiary Hutchison MediPharma Holdings Limited ("Hutchison MediPharma"), the novel drug R&D company, has raised a further approximately US$7.7 million via a private investment from SBCVC Fund III Company Limited ("SBCVC Fund III"), the third US dollar fund managed by SB China Venture Capital Limited ("SBCVC"), bringing the total capital raised in this investment round to approximately US$20.1 million.  The capital will be used to support the continued development of its substantial pipeline of internally developed research and development programmes. 

Under the terms of the agreement, SBCVC Fund III has invested approximately US$7.7 million in cash in return for new convertible Preference Shares giving SBCVC Fund III 7.5% of the enlarged share capital of Hutchison MediPharma. 

This follows the investment by Mitsui & Co. ("Mitsui") of an investment of approximately US$12.5 million in cash on 8 November 2010 in return for new convertible Preference Shares giving Mitsui 12.2% of the enlarged share capital (including the investment from SBCVC) of Hutchison MediPharma.

"SBCVC is one of the most successful venture capital management firms in China of the past decade and we are honoured to have them invest in our business," said Samantha Du, Chief Scientific Officer of Chi-Med and Chief Executive Officer of Hutchison MediPharma.  "We look forward to the synergies that we believe will come from association with SBCVC and its portfolio of world-class Chinese technology companies."

Tim Liu, Managing Partner at SBCVC, said, "With a rich and exceptional portfolio of first class drug candidates, Hutchison MediPharma is structurally and scientifically a world class R&D company with unique research platforms, large pharma strategic partnerships and a proven track record."  He added, "Hutchison MediPharma's research platform has demonstrated its high productivity and operating efficiency through the rapid development of compounds such as the first in class product HMPL-004, which addresses a significant unmet medical need in inflammatory bowel disease, as well as many other highly differentiated clinical and preclinical programmes.  We are very excited about investing in a company with such broad potential and superior management team." 

Hutchison MediPharma has a wide pipeline of clinical drug candidates.  Its lead candidate, HMPL-004, offers a novel mechanism for the treatment of inflammatory bowel disease and has delivered very successful Phase IIb ulcerative colitis clinical trial results for which it made the plenary presentation at Digestive Disease Week 2010.  The Hutchison MediPharma clinical pipeline also includes its first-in-class novel inflammation compound HMPL-011, finishing Phase I clinical trials in Australia, and its novel FGFR/VEGFR inhibitor Sulfatinib, in Phase I clinical trials in China.  It has Investigational New Drug applications under review on multiple small molecule drug candidates.  Recent Hutchison MediPharma awards include the Top 10 Inflammatory/Autoimmune Projects to Watch by Windhover/Healogix for HMPL-004 and the Deloitte Technology Fast 50 China Award. 

Christian Hogg, Chief Executive Officer of Chi-Med said, "Our aim for Hutchison MediPharma is for it to grow into a large-scale self-funding biotech company, the first of its kind in China, identifying and developing novel drugs for the global pharmaceutical market.  This investment from SBCVC Fund III, along with that by Mitsui, helps drive this aim and is an early indication of the considerable value we believe Hutchison MediPharma has and will continue to create."

Hutchison MediPharma is one of the three businesses that currently comprise Chi-Med, the other two being its fast growing and cash generative China Healthcare business, and its rapidly emerging Consumer Products business, focused on healthy living in China.

Ends

Enquiries

Chi-Med Christian Hogg, CEO	Telephone:      [phone]
Citigate Dewe Rogerson Anthony Carlisle David Dible	Telephone:      [phone] Mobile:             [phone] Mobile:             [phone]
Lazard & Co., Ltd. Paul Gismondi Nick Fowler	Telephone:      [phone]

Notes to Editors

About Hutchison MediPharma

Hutchison MediPharma is a novel pharmaceutical research & development company focused on discovering, developing and commercializing innovative therapeutics in oncology and autoimmune diseases.  With a team of well over 200 scientists, its pipeline includes novel oral compounds for cancer and inflammation in development in North America, Europe, Australia and Greater China.

Hutchison MediPharma is majority owned by Chi-Med.

For more information, please visit: http://hmplglobal.com 

About Chi-Med

Chi-Med is the holding company of a pharmaceutical and healthcare group based primarily in China and was listed on the Alternative Investment Market of the London Stock Exchange in May 2006.  It is focused on researching, developing, manufacturing and selling pharmaceuticals and health oriented consumer products.

Chi-Med is majority owned by Hutchison Whampoa Limited, an international company listed on the Main Board of The Stock Exchange of Hong Kong Limited.

For more information, please visit: http://www.chi-med.com 

About SBCVC

Established in 2000, SBCVC is a leading venture capital management firm in China, with a successful track record of both entrepreneurship and investment.  In addition to capital, the firm¡¦s team leverages its rich experience in investment, its global network, and its China know-how, to assist its portfolio companies.

SBCVC invests in various industries, including information technologies, healthcare, cleantech, new materials, consumer, and retail, etc. for high potential companies in early, growth/expansion, and pre-IPO stages.

Headquartered in Shanghai, SBCVC has offices in Beijing, Suzhou, Tianjin, Chengdu, Shenzhen and Taipei.  Portfolio companies include Alibaba, Taobao, Focus Media, eBao Tech, GDS, Precise and PPLive, amongst others.

For more information, please visit: http://www.sbcvc.com/english/index.htm

 

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