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| 1. |
What does Chi-Med do? |
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Chi-Med's aim is to draw on the untapped wealth of knowledge and history of usage of Traditional Chinese Medicine to develop pharmaceutical and consumer products for the global market.
Chi-Med has three complementary business areas - drug research and development, China healthcare, and consumer products - which together cover researching, developing and manufacturing and selling pharmaceuticals, health supplements and other consumer health and personal care products derived from TCM. |
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| 2. |
What is Chi-Med's business history? |
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Chi-Med was established in 2000 when HWL identified three business development opportunities related to TCM. |
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| 3. |
What is the business structure? |
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Chi-Med comprises three business areas:
- Drug discovery and development carried out by Hutchison MediPharma
- China healthcare carried out by Shanghai Hutchison Pharmaceuticals, Hutchison Healthcare and Hutchison Baiyunshan
- Consumer products business carried out by Sen Medicine Company
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| 4. |
What is official name of the Company? Hutchison China Meditech or Chi-Med? |
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Chi-Med is the brand name for Hutchison China Meditech, the registered holding company name. |
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| 5. |
What are the top line financials for the business? |
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Revenues for 2005 were US$ 37.9m, up 117% from US$ 17.5m in 2004. The operating loss was US$ 6.4 million compared to US$ 7.4 million in 2004.
Of the revenues, the China Healthcare business accounted for US$ 37.2 million. |
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| 6. |
Another company based on Traditional Chinese Medicines, Phynova, recently floated on AIM. How do you compare? Do you compete? |
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Phynova also recognises the potential of Chinese medicine as a starting point for drug development. However, the scale and profile of the two businesses are very different. Phynova is a small UK-based company focussed on developing drugs for viral and metabolic diseases. Chi-Med's drug research and development group numbers more than 70 scientists and staff and are based in a 5,000 square metre R&D facility. We focus on different therapeutic areas - oncology and auto-immune diseases - and our pipeline is more advanced with two products in Phase II trials in the US. In addition, Chi-Med has a cash generating business focussed on the Chinese healthcare market, employing more than 1750 people, and a consumer products business, Sen. Furthermore, Chi-Med is based in China - one of the fastest growing healthcare markets in the world giving us the opportunity to grow our Healthcare business and the knowledge base for our developing business. |
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| 7. |
The three business areas seem very diverse. Do they really belong together in one company? |
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The three businesses are all rooted in Traditional Chinese Medicine, and are complementary, but differ in how they seek to commercialise TCM. We believe this business mix reduces Group risk by blending established cash generative healthcare assets with developing businesses in drug development and consumer products. The established China Healthcare operations provide a solid foundation and knowledge base for the Chi-Med's new business development activities. |
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