Hutchison China Meditech Limited
18 June 2007
Hutchison China MediTech Limited ('Chi-Med')
(AIM: HCM)
Chi-Med locks-in property gain and protects low cost R&D structure through
acquisition of Shanghai facility
London, Monday, 18 June 2007: Chi-Med today announces its wholly-owned drug R&D
subsidiary, Hutchison MediPharma Limited ('Hutchison MediPharma'), has purchased
a building of 5,024 sq.m. located at Zhang Jiang High-Tech Park in Pudong,
Shanghai, China ('ZJ High-Tech Park') it has leased for the past three years
from Zhang Jiang Biotech and Pharmaceutical Base Development Co. Ltd. for a
total price of US$3.3 million. The building, which houses all Hutchison
MediPharma's R&D facilities and its 120 scientists and staff, has expansion
capacity for up to 300 staff.
The purchase price of US$3.3 million, which is well below the current market
price of approximately US$5.6 million, is the result of an agreement made in
early 2004 that originally enticed Hutchison MediPharma to become the first
foreign drug R&D operator to move to ZJ High-Tech Park. Since then, others
including Pfizer, Lilly, Astra Zeneca, Roche and Novartis have established R&D
operations in ZJ High-Tech Park making it China's main drug R&D hub. This
influx combined with growth in overall Shanghai property demand have led to a
rapid rise in both rental and purchase prices.
Mr. Christian Hogg, CEO of Chi-Med, said:
'This is a modern facility, tailor-made and ideally located for Hutchison
MediPharma's current and future drug R&D needs. We have taken the opportunity
to buy a valuable, and fully transferable, asset at considerably below current
market value. It is a very good use of a small portion of Chi-Med's current
US$66 million in available cash and importantly will help lock-in a low cost
operating structure on the drug R&D business.'
Ends
Enquiries
Chi-Med Telephone: +852 2121 8200
Christian Hogg, CEO
Citigate Dewe Rogerson Telephone: +44 (0) 20 7638 9571
Anthony Carlisle +44 (0) 7973 611 888
Yvonne Alexander +44 (0) 7866 610 682
Notes to Editors
Chi-Med is the holding company of a pharmaceutical and healthcare group based
primarily in China and was admitted to trading on the Alternative Investment
Market of the London Stock Exchange in May 2006. Chi-Med is focused on
researching, developing, manufacturing, and selling pharmaceuticals, health
supplements and other consumer health and personal care products derived from
Traditional Chinese Medicine and botanical ingredients.
Hutchison MediPharma is Chi-Med's wholly-owned drug research and development
company and has a team of around 120 scientists and staff focusing on botanical
drugs, semi-synthetic natural product drugs, and synthetic single chemical
entity drugs. It currently has two candidates in clinical development in both
the US and China. HMPL-002, a radiosensitiser for head and neck and non-small
cell lung cancer, is in Phase I/II in the US and in proof-of-concept in China.
HMPL-004, an inhibitor to a group of inflammatory cytokines, for treatment of
inflammatory bowel diseases, including Crohn's Disease and Ulcerative Colitis,
is in Phase II in the US and in proof-of-concept in China. Hutchison MediPharma
also has a pipeline of single molecular entity discovery projects in the
auto-immune/inflammatory diseases and oncology therapeutic areas which have
shown activity against clinically validated targets.
Chi-Med is majority owned by Hutchison Whampoa Limited, an international
corporation listed on the Main Board of The Stock Exchange of Hong Kong Limited.
This information is provided by RNS
The company news service from the London Stock Exchange
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