NetScientific — Update 9 December 2016

NetScientific — Update 9 December 2016

NetScientific

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NetScientific

On deck for multiple 2017 launches

Operational update

Pharma & biotech

9 December 2016

Price

65.00p

Market cap

£33m

US$1.24/£

Net cash (£m) at 30 June 2016

15.9

Shares in issue

51.1m

Free float

85%

Code

NSCI

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(0.8)

(11.6)

(29.0)

Rel (local)

(2.1)

(11.9)

(36.1)

52-week high/low

96.0p

63.0p

Business description

NetScientific is a transatlantic biomedical and healthcare technology group. Its portfolio of five core investments and one material investment is focused on three main sectors: digital heath (Wanda), diagnostics (Vortex, ProAxsis, Glycotest) and therapeutics (PDS Biotechnology).

Next events

Series A closures

2016-17

PDS Phase II initiation

Q416

Vortex product launch

H117

ProAxsis product launch

Mid-2017

Analysts

Maxim Jacobs

+1 646 653 7027

Nathaniel Calloway

+1 646 653 7036

NetScientific is a research client of Edison Investment Research Limited

NetScientific’s subsidiaries have made multiple advances on regulatory and commercial fronts. ProAxsis and Vortex will both be launching their first products in 2017, and to this end they have both received CE marks for sale in Europe, with Vortex receiving a Class 1 device designation for sale in the US. In addition, Wanda has signed two new contracts with care providers, bringing the total to four.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

12/14

0.0

(6.2)

(15.3)

0.0

N/A

N/A

12/15

0.1

(11.3)

(24.4)

0.0

N/A

N/A

12/16e

1.1

(14.7)

(22.1)

0.0

N/A

N/A

12/17e

4.3

(13.2)

(20.2)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Vortex instruments ready for US launch

With the Class 1 designation, Vortex’s VTX-1 is exempt from premarket notification and manufacturing control requirements in the US. The company expects the first US sales in 2017, and is targeting the research market. The product was recently featured in a peer-reviewed publication in the journal Oncotarget, which speaks to the utility of the product in the research setting.

PDS potentiates HPV vaccine

PDS Biotechnology has presented final clinical results from a dose escalation Phase I/IIa clinical trial. The trial examined safety and immune activation in 12 women following HPV vaccination and three dosing levels of the Versamune adjuvant. There were no serious adverse events or discontinuations, and there was a dose dependent increase in immune activation: up to 26x interferon ɣ and 21x granzyme B expression. The company will be progressing to Phase II.

Glucosense programme not going to the clinic

The company announced that the initial positive results seen with the Glucosense non-invasive glucose monitoring device have been difficult to replicate and that the programme will not be entering the clinic at this time. Although it is still on NetScientific’s balance sheet, we do not expect the programme to advance in its current form and have removed it from our estimates and forecasts.

Valuation: 133p per share

We have reduced our valuation to £67.8m or 133p/share, from £71.7m or 140p, reflecting the discontinuation of the Glucosense programme, as well as a lower cash balance of £15.9m, offset by increasing the probability of success for PDS, as well as rolling over our NPVs and an updated exchange rate. NetScientific reported a cash outflow of £7.6m for H116 and has a net funding obligation of c £15m at the subsidiary level (down from £18m). While we expect these financing needs to be fully met via the Series A financings expected in 2016 or 2017, this could result in further ownership dilution for NetScientific.

Moving forward on multiple fronts

Since our last report, NetScientific has provided its half-year report and multiple other incremental updates on the operations of its subsidiaries as they advance their commercialisation and development programmes. Series A financings are still planned for all the majority-owned subsidiaries (Wanda, ProAxsis, Glycotest and Vortex).

Vortex’s VTX-1 ready for sale; new testing tech out of Harvard

Vortex announced a series of regulatory advances that are important for the commercialisation of the circulating tumour cell (CTC) technology. The company received a CE mark from the EU for the VTX-1 cell isolation platform, preparing it for launch in Europe. The company also received a so-called Class 1 designation from the FDA. Medical devices (including diagnostic tests) marked as Class 1 pose the lowest threat to human health. Class 1 devices are exempt from 510(k) premarket notification requirements and GMP controls. Devices in this class cannot be used to diagnose a disease or provide medical guidance, although they can be used as part of a larger diagnostic procedure. This will allow the VTX-1 to be sold to researchers and interested clinical investigators in the US, and the company has announced that the first sales are expected in 2017.

The product was also recently featured in an article in the journal Oncotarget.1 The authors, some of whom are from Vortex, used the VTX-1 chip to isolate CTCs from 15 colorectal cancer patients and screened these cells for mutations common to the disease (KRAS, BRAF, PIK3CA). On average 2.6 cells/mL of blood were isolated using the chip, and these levels were not affected by the use of neoadjuvant therapy (Exhibit 1). These cells were used to track individual patients through courses of treatment, monitoring the progress of their disease. The study also compared the rate of mutations detected in CTCs isolated from the chip with those found in circulating tumour DNA (ctDNA), an alternative liquid biopsy technology. The two types of test agreed between 74% and 91% of the time, depending on the mutation, although neither test identified all mutations, and therefore the authors concluded that the two technologies were complementary. The cells isolated with the VTX-1 showed mutations similar to biopsy 77.8% of the time. This study adds to the body of evidence for the utility of the technology both as a diagnostic and as a research tool.

  Kidess-Sigal E, et al (2016) Enumeration and targeted analysis of KRAS, BRAF and PIK3CA mutations in CTCs captured by a label-free platform: Comparison to ctDNA and tissue in metastatic colorectal cancer. Oncotarget

Exhibit 1: Isolation of CTCs from colorectal cancer patients using the VTX-1

Source: Kidess-Sigal, et al.1

In other news, Vortex has licensed electroporation technology from Harvard University. Electroporation is the process of using a pulse of electricity to temporarily form holes in the membranes of living cells. Many different molecules such as DNA, proteins or diagnostic chemicals can be introduced to the interior of a cell in this manner. In traditional electroporation procedures, cells are exposed to a range of electric field strengths and the damage to many cells is irreversible, leading to cell death. The new technology leverages the microfluidics in the VTX-1 chip to provide a more uniform electric field thereby decreasing cell death. Although the company has not provided specifics, this technology could potentially be used in future iterations of the device for a wide array of diagnostic procedures via probing of the intracellular function of CTCs.

PDS presents detailed immunology data

PDS Biotechnology recently presented the results from the open-label Phase I/IIa dose escalation study of PDS0101, its treatment in development for Human papillomavirus (HPV) related cancers. The results were presented at the Annual Meeting of the Society for Immunotherapy of Cancer. The trial enrolled 12 women with high-risk HPV infection and the primary outcome measure was safety and tolerability, although the patients were also examined to see if the vaccine induced an anti-HPV immune response. The enrolees each received 2.4mg of HPV vaccine (HPV-16 E6 and E7 peptides) and successive cohorts received successively larger doses of the Versamune adjuvant (1mg, 3mg and 10mg). This data release is the first time that the response of the patients with 10mg Versamune has been examined.

The company did not provide a complete safety profile but it did note that no dose limiting toxicities, serious adverse events, or discontinuations due to adverse events were observed. The main adverse event that was observed was injection site reactions that were more severe at higher Versamune doses. No other treatment emergent adverse events were correlated with increases in dose.

The HPV specific immune response was measured in the patients by measuring the increase in interferon ɣ (IFN-ɣ) and granzyme B following inoculation with HPV antigen. An increase in IFN-ɣ is indicative of antigen specific immune response, and granzyme B increases in response to cytotoxic T-cell activation. Nine of the 12 participants in the study had positive IFN-ɣ responses and six of the twelve had positive granzyme B responses (Exhibit 2). The study was complicated by the presence of two outliers (one in the 1mg cohort and one in the 3mg cohort) with unusually high baseline IFN-ɣ. Neither of these outliers responded to either assay. Additionally, the granzyme B assay could not be performed due to low sample volume in the 1mg cohort. The addition of the 10mg cohort in this data release increases our confidence in the reproducibility of the induction effect, given the limitations of the 1mg and 3mg cohorts. However, the increased dose does not appear to improve T-cell activation any further. The company is progressing to Phase II clinical trials.

Exhibit 2: Dose dependent Versamune sensitisation

Cohort

n

IFN-ɣ

Granzyme B

# responders

%

Fold increase

# responders

%

Fold increase

1mg

3

2

67%

14

1

50%*

3

3mg

3

2

67%

24

2

67%

21

10mg

6

5

83%

26

3

50%

18

Source: PDS Biotechnology. Note: *One patient not tested due to low sample volume.

ProAxsis on track for 2017 launch

Similar to Vortex, ProAxsis received a CE mark for its NEATstik neutrophil elastase test. This will enable the test to be sold on the European market, where the company is targeting a mid-2017 commercial launch. Neutrophil elastase is a marker of inflammation and respiratory disease and the company intends to market its test for the management of cystic fibrosis and chronic obstructive pulmonary disease.

Wanda signs two new contracts

Wanda has announced two more sales agreements with A to Z Home Health Care and 24Hr HomeCare, bringing the total number of provider contracts to four. Both companies are domestic healthcare service providers based in California. This rate of signing new contracts is consistent with our estimates, and we expect acceleration in the future with increasing proof of positive outcomes for patients and reduced costs for caregivers.

Glucosense not progressing to the clinic

Glucosense is a prototype-stage company founded to develop a non-invasive method of monitoring blood glucose. NetScientific has announced that the company had difficulty with the reproducibility of its technology and therefore the device will not proceed to clinical testing. Glucosense remains on NetScientific’s balance sheet, but the future of this programme is in question and we have removed it from our valuation. NetScientific invested £0.7m in the company.


Valuation

We have reduced our valuation to £67.8m or 133p per share from £71.7m or 140p. This change reflects the removal of Glucosense from our valuation and a lower cash balance, partially offset by rolling over our NPVs to the most recent reporting period and an updated exchange rate (from $1.32/£ to $1.24/£). We have also increased the valuation of PDS to reflect an increased probability of success (10% from 7.5%) following the recently presented detailed clinical trial results. We expect to update our valuation following the closure of the Series A financings, which are expected in the near term, as well as with initial sales reports from Vortex and ProAxsis, which are expected when these companies launch their commercial products in 2017.

Exhibit 3: NetScientific valuation

Development Program

Prob. of success (%)

Profitability

Peak sales (£m)

Margin

(%)

rNPV
(£m)

Ownership

(%)

Share value (£m)

Vortex

15.0%

2020

150

44%

13.1

95.0%

12.4

Wanda

7.5%

2019

374

53%

26.2

71.3%

18.7

Proaxis

10.0%

2020

50

51%

7.2

56.5%

4.0

Glycotest

10.0%

2019

123

51%

13.8

87.5%

12.1

PDS

10.0%

2021

302

57%

31.0

14.9%

4.6

Total

 

 

 

 

 

 

51.8

Net cash and equivalents (H116) (£m)

15.9

Total firm value (£m)

67.8

Total shares (m)

51.1

Value per share (p)

133

Source: NetScientific reports, Edison Investment Research

Financials

NetScientific released financial results for H116 showing an operating loss of £6.3m, with £3.7m in R&D spending. We expect spending to increase (£15.5m for 2016 and £16.1m for 2017), reflecting the clinical advancement of the subsidiary development programmes, offset by increased revenue (£1.1m for 2016 and £4.3m for 2017). Our spending estimates have been reduced (by approximately £5m for 2016 and 2017) to reflect the removal of the Glucosense programme from our estimates. The company ended the period with £15.9m in cash. It should be noted that all these estimates reflect current ownership stakes of the various subsidiaries and we expect these values to change to reflect the potential dilution from upcoming financing rounds. We expect these financings to offset future funding requirements for these companies. Based on the current ownership structure, the company will require £21m in additional financing (recorded as illustrative debt in 2017) before profitability in 2019, offset by £6m in cash spending attributable to minority interests, for a net obligation of £15m, a reduction from the previous estimate of £18m.

Exhibit 4: Financial summary

£000s

2014

2015

2016e

2017e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

24

122

1,074

4,323

Cost of Sales

0

(6)

(236)

(968)

Gross Profit

24

116

838

3,355

Research and development

(3,098)

(7,256)

(9,677)

(9,677)

Selling, general & administrative

(3,212)

(4,260)

(5,844)

(6,391)

EBITDA

 

 

(6,352)

(11,530)

(14,958)

(12,850)

Operating Profit (before GW and except.)

(6,286)

(11,400)

(14,820)

(12,713)

Intangible Amortisation

0

0

0

0

Exceptionals/Other

(948)

(1,518)

(258)

0

Operating Profit

(7,234)

(12,918)

(15,079)

(12,713)

Net Interest

77

78

102

(525)

Other (change in fair value of warrants)

0

0

0

0

Profit Before Tax (norm)

 

 

(6,209)

(11,322)

(14,718)

(13,238)

Profit Before Tax (IFRS)

 

 

(7,157)

(12,840)

(14,976)

(13,238)

Tax

30

94

76

66

Deferred tax

0

0

0

0

Profit After Tax (norm)

(6,179)

(11,229)

(14,642)

(13,172)

Profit After Tax (IFRS)

(7,127)

(12,746)

(14,900)

(13,172)

Average Number of Shares Outstanding (m)

35.9

38.2

51.1

51.1

EPS - normalised (p)

 

 

(15.3)

(24.4)

(22.1)

(20.2)

EPS - IFRS (p)

 

 

(17.9)

(28.4)

(22.6)

(20.2)

Dividend per share (p)

0

0

0

0

BALANCE SHEET

Fixed Assets

 

 

3,040

2,946

3,457

4,469

Intangible Assets

10

1

0

0

Tangible Assets

348

285

472

334

Other

2,681

2,660

2,985

4,135

Current Assets

 

 

17,720

23,799

10,101

16,729

Stocks

0

0

358

1,441

Debtors

853

560

71

432

Cash

16,867

23,239

9,571

14,755

Other

0

0

100

100

Current Liabilities

 

 

(1,324)

(2,206)

(3,516)

(3,009)

Creditors

(1,281)

(2,156)

(3,516)

(3,009)

Short term borrowings

(43)

(50)

0

0

Long Term Liabilities

 

 

(740)

0

0

(21,000)

Long term borrowings

(687)

0

0

(21,000)

Other long term liabilities

(53)

0

0

0

Net Assets

 

 

18,696

24,538

10,042

(2,811)

Minority Interest

(1,098)

(1,805)

(5,071)

(7,939)

Shareholder Equity

 

 

17,598

22,733

4,971

(10,750)

CASH FLOW

Operating Cash Flow

 

 

(6,698)

(10,752)

(13,450)

(14,207)

Net Interest

67

38

43

(525)

Tax

19

83

0

66

Capex

(336)

(299)

(290)

0

Acquisitions/disposals

(2,181)

(144)

(346)

(1,150)

Financing

0

18,208

0

0

Dividends

0

0

0

0

Other

119

0

0

0

Net Cash Flow

(9,010)

7,133

(14,043)

(15,816)

Opening net debt/(cash)

 

 

(25,069)

(16,136)

(23,189)

(9,571)

HP finance leases initiated

0

0

0

0

Exchange rate movements

(140)

(212)

(293)

0

Other

218

131

718

0

Closing net debt/(cash)

 

 

(16,136)

(23,189)

(9,571)

6,245

Source: NetScientific accounts, Edison Investment Research

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals work with leading companies, fund managers and investment banks worldwide to support their capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2016 Edison Investment Research Limited. All rights reserved. This report has been commissioned by NetScientific and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

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Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals work with leading companies, fund managers and investment banks worldwide to support their capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2016 Edison Investment Research Limited. All rights reserved. This report has been commissioned by NetScientific and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Research: Healthcare

Hutchison China MediTech — Update 9 December 2016

Hutchison China MediTech

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