Hutchison China MediTech Limited

Climate Impact & Sustainability Data (2016, 2019)

Need for substantial funding for product development and commercialization.
Historically, the Innovation Platform has not generated significant profits.
Competition from major pharmaceutical and biotechnology companies.
Lengthy and expensive clinical development process with uncertain outcomes.
Potential for undesirable side effects from drug candidates.
Regulatory approval processes are lengthy, time-consuming, and unpredictable.
Reliance on third parties for clinical trials and manufacturing.
Dependence on joint ventures for Commercial Platform business.
Risks related to intellectual property protection.
Risks related to doing business in China (FCPA, Bribery Act, anti-corruption laws, environmental regulations, product liability, economic and political conditions, currency exchange restrictions, tax incentives).

Expected cash flow from operations and existing credit facilities to fund operations for at least the next 12 months.
Strategic alliances with AstraZeneca, Eli Lilly, and Nestlé Health Science for funding and expertise.
Adapting the Commercial Platform to commercialize drug candidates.
Implementation of policies to ensure compliance with anti-corruption laws.
Maintaining insurance for business interruptions and potential liabilities.
Filing patents and relying on trade secrets to protect intellectual property.
Diversification of funding sources (public offerings, debt financing, collaborations).

Chi-Med Group compensation and share-based incentive policy: The Group has comprehensively reviewed its compensation and share-based incentives policies, performed benchmarking research on peer group U.S. and China biotech companies and established a new competitive policy to ensure we are able to attract and retain top talent; and
Establishment of China oncology commercial organization: Currently over 140 commercial staff, aiming to recruit a total of 300-350 staff to support potential surufatinib launch in late 2020.

The outbreak is posing some challenges to our operations resulting from restrictions on movement in China. Reduced patient hospital visits for clinical assessment affected the conduct of certain clinical studies and commercial team activities.

Our teams have adapted quickly and effectively thus far across our businesses, and we will continue to closely monitor what is an evolving situation.

Supplier Audits: regular