Chi-Med disappointed as lung cancer treatment falls short

Shares in Hutchinson China Meditech, known as Chi-Med, dived on Friday after its flagship cancer treatment disappointed in a final-stage trial.

In a study of 527 lung cancer patients in China, fruquintinib slowed the progress of the disease but failed to significantly improve survival rates achieved by existing treatments.

Further trials are currently ongoing in the US and China, including trials that observe the effects of the treatment in combination with checkpoint inhibitors, chemotherapy, and other targeted therapy agents.

Simon To, chairman of Chi-Med, said: "While the study demonstrates a significant reduction in disease progression in this challenging lung cancer patient population, we are disappointed that this benefit did not translate into an increase in overall survival."

Manufactured at a facility in Suzhou, China, fruquintinib is nearing its market launch in the Far-Eastern nation for the treatment of advanced colorectal cancer after being approved by the national medical products administration of China in September.

"We remain confident that the high selectivity and lower off-target toxicities of fruquintinib are major points of differentiation. The recent first approval of fruquintinib monotherapy for advanced colorectal cancer, the imminent launch in China, and the commencement of several combination collaborations with immunotherapies both in China and in the US, reinforces our belief in fruquintinib," said To.

Chi-Med’s shares were down 14.55% at 4,785.00p at 0950 GMT.