Tech hero

It doesn’t do to dwell on might-have-beens. In fact, it’s particularly dangerous for investors, who should learn their lessons and move on. However, sometimes it’s hard to resist.

The best stock I never bought but really wish I had is AIM-listed Hutchison China Meditech (LSE: HCM), also known as Chi-Med. I recently stumbled across an old watchlist, and there it was. There were only two other stocks listed: Sirius Minerals, the exciting but risky polyhalite fertiliser play from North Yorkshire, and energy explorer Tullow Oil.

Out of the bag

I’m glad I didn’t buy Tullow, it is down 79% since I added it to my watchlist. I did buy Sirius, up 60% since I popped it on my watch list (although down 10% since I actually purchased it). However, I really, really wish I’d bought Hutchison China Meditech, because that was up a storming 1,900% to 3,920p, making it a massive multi-bagger. Ouch.

Worse, I remember agonising over it for several months, but never screwed up courage to buy what looked like a high-risk, high-reward play. It would have turned my planned £2,000 investment into £20,000. I’m not bitter. OK, maybe a bit.

China in my hand

Looking at it now, I can see why I was nervous. This is a biopharmaceutical company that aims to become a global leader in targeted therapies for oncology and immunological diseases. As a rule, I don’t invest in this sector. But my initial interest was in its commercial platform, which manufactures and distributes prescription drugs and consumer health products in China. I saw this as an exciting play on growing Chinese wealth and changing demographics.

I didn’t pay much attention to its Innovation Platform, which develops a pipeline of oral drugs for oncology and immunological diseases in North America, Europe, China and Australia.

Bumpy road

Last year, Royston Wild confirmed I’m not alone in looking at this stock. He saw plenty of reasons why earnings may detonate in the years ahead, as Hutchison bolsters its R&D and regulatory activities outside Asia and lays the ground for new product launches.

However, its shares tumbled in November after flagship fruquintinib cancer treatment disappointed in a final-stage Chinese trial with lung cancer patients, although it has subsequently launched for advanced colorectal cancer. It is down 20% over the last 12 months.

Power of 20

In March, it posted an 11% drop in overall group revenues to $214.1m, with a net loss of $74.8m, almost triple 2017’s loss of $26.7m. Revenues were hit by a change in Chinese government policy and an increase in research & development expenses. Cash and cash equivalents stood at a fairly healthy $423m, though.

Chi-Med’s fate now rests on its pipeline as it targets multiple new drug applications in the next two or three years. With a market-cap of £2.67bn, it has its work cut out to grow another 20 times from here. I wish it well, but at today’s much higher price, it still looks too risky for me.

The post This AIM-listed 20-bagger is the best stock I never bought appeared first on The Motley Fool UK.

Unfortunately not all investors in the UK and abroad are as clued up as they could be, so we’ve been at pains more recently to identify a number of investment strategies that could help you stave off retirement poverty.

In a recent article I selected some of the best dividend shares from the FTSE 250 that should more than offset any shortfall caused by the State Pension. Given the positive response to these picks from our audience, I’m at it again today, looking at two great pharmaceutical stocks that could help you to retire on a fortune: Hutchison China MediTech (LSE:HCM) and Animalcare (LSE: ANCR).

Tech This Out

Hutchison isn’t turning a profit right now. It isn’t expected to turn a profit by the end of the decade at least. But share investors who are in it for the long haul should give the Asia-focused medicines giant close consideration on the back of its bulging product pipeline.

On the immediate horizon, the market waits with baited breath for news on the company’s oncology treatment fruquintinib for the remainder of the year. It is expecting approval and launch of the product in China for colorectal cancer in the months ahead, and is also seeking Phase III testing results for lung cancer application soon.

Things are likely to remain exciting in 2019 and beyond. Following positive Phase II data on its savolitinib cancer battler, Hutchison has begun exploring the possibility of accelerated approval from Chinese regulators to bring the treatment to market sooner. In addition, another major drug, tumour treatment sulfatinib, is due to begin Phase III studies in China next year.

Hutchison’s global expansion strategy also offers plenty of reason to expect earnings to detonate in the years ahead. During Q2, its Hutchison MediPharma (US) division started operating in New Jersey, a move designed to bolster its R&D and regulatory activities outside of Asia and also prepare the ground for new product launches.

Animal magic

The ballooning market for veterinary medicines also makes fellow AIM stock Animalcare a hot growth prospect.

Investor appetite soured in the spring after it warned that the impact of a changing sales mix on gross margins, allied with a recent rise in competitive pressures, would see earnings fall short of expectations in 2018. This subsequent re-rating now leaves Animalcare dealing on a forward P/E ratio of 12.6 times, and this represents a brilliant time for patient investors to jump in, I believe.

Revenues at the business rose 6.4% in the six months to June, it advised in August, and its bubbly pipeline promises more impressive top-line progress. It has several product launches slated for the remainder of 2018 and for the start of next year,  including Cortacare which received approval from the Committee for Medicinal Products for Veterinary European Medicines in June.

An added reason to investing in Animalcare is that the business, unlike the vast majority of pharma players, offers quite fatty dividend yields — for 2018 and 2019 these sit at 4.2% and 4.3% respectively. There’s still a lot to cheer over at the business, and especially at current prices. It’s a great buy in my book.

The post Don’t worry about the State Pension! These 2 pharma stocks could make you VERY wealthy appeared first on The Motley Fool UK.

Missed opportunities

Very often you’ll come across a company that you’d previously dismissed as being too risky, only to discover some years later that the business has morphed into a £1bn monster. As investors we often have to deal with the negative emotions that arise from such missed opportunities, those who missed out on ASOS and Boohoo.Com will know exactly what I’m talking about.

That said, we can’t just go chasing after tomorrow’s hidden winners willy nilly – that would certainly be a recipe for disaster. The trick is to separate the wheat from the chaff, the valuable from the worthless. So today I’m looking at two AIM-listed companies that I believe could turn out to be monster stocks of the future.

Fighting fraud and cybercrime

First up is GB Group (LSE: GBG), the global specialist in identity data intelligence. The Chester-based technology group helps companies and governments fight fraud and cyber crime, specialising in areas such as fraud, risk & compliance, employee screening, and customer & location intelligence.

With both governments and individual companies becoming increasingly wary of fraud and cybercrime in particular, it will perhaps come as no surprise that GBG has more-than-doubled its revenues and pre-tax profits since 2014.

A storming year

The group boasts a strong renewal stream from its existing customer base, while also attracting new, high-profile customers to its growing portfolio. I see a bright future for GBG, with the business well positioned to meet the growing demand for identity data intelligence products.

The downside is that after a storming year, the shares are trading on very high rating of 36 times forward earnings for FY2018, so I would suggest adding it to your watch list to buy on any weakness during the coming months.

Promising cancer drugs

My second offering comes from the orient – Hong Kong to be precise. Hutchison China MediTech (LSE: HCM), better known as Chi-Med. It is an AIM-listed biopharmaceutical company focused on discovering and developing targeted therapies for oncology and immunological diseases for the global market.

Last year, global market sales of oncology drugs grew by 11% to $175.7bn making it the largest treatment area in the global pharmaceutical market, with a 17% market share. But in China, despite being home to 8.1m cancer patients, or about 20%-30% of those in the world, market sales of oncology drugs were just $7.3bn, or around 4% of the global market. This clearly indicates a huge opportunity for Chi-Med in its domestic market, as well as overseas.

Despite rapidly-growing revenues, the company is not yet profitable as funds continue to be pumped into research and development. But with a number of promising cancer drugs in the pipeline this won’t be the case for very long. The share price is riding high after more-than-doubling to £58 in the last 12 months alone, so this is another one to add to your watch list in 2018.

The post 2 monster stocks in the making I’d buy for 2018 appeared first on The Motley Fool UK.

China syndrome

This AIM-listed biopharmaceutical company, also known as Chi-Med, aims to become a global leader in targeted therapies for oncology and immunological diseases, and investors have bought into the story with the share price soaring an incredible 885% in the past five years alone. The runaway success story continues, with the shares up 56% in the last six months alone.

Today the company reported its unaudited financial results for the six months ended 30 June, and they look strong, if a little unexciting, as the share price is broadly flat this morning. Group revenue jumped 21% to a record $126.6m, up from $104.5m in the first half of 2016. Chi-Med generated consolidated revenues of $22.7m, only slightly up on last year’s $22.3m, aided by milestone payments of $4.5m from Lilly, $5m from AstraZeneca, and service fee payments from Lilly, AstraZeneca and Nutrition Science Partners, the firm’s 50/50 joint venture with Nestlé Health Science.

Profit and loss

The group also incurs major research and development expenses as it pursues 31 active or completing clinical trials, which totalled $31.6m in the first half, up slightly from $31.2m. Chi-Med group operating profit was $6.3m, up 18.87% on $5.3m in 2016. The group boasts a solid cash position, with available resources of $192.5m on 30 June, up from $173.7m on 31 December. Chi-Med received first-half dividends from its non-consolidated joint ventures of $42.6m, up from $15.9m in 2016. 

As these results show, Hutchison China Meditech is all about the future. It has posted a pre-tax loss for each of the past three years (2014: $5m, 2015: $10.54m, 2016: $47.36m) and City analysts predict it will lose $39.92m in full-year 2017 and $35.14m in 2018. What matters is the quality of its drugs pipeline, which will drive company profitability in the longer run. Today’s results include a dizzying list of drug applications, registration studies, pivotal Phase III studies, clinical drug candidates, drug evaluations and proof-of-concept data.

The drugs may work

Obviously, investors are in no position to work out whether these will be a success and as we saw last week with FTSE 100 pharmo behemoth AstraZeneca, unexpected setbacks can punish the share price. However, Hutchison China Meditech has had its share of successes, and the pipeline is strong.

Progress may be erratic. In 2016, the company posted full-year revenues of $216.8m, almost 10 times the $22.37m it reported five years earlier. However, forecasters reckon the revenues could dip to $181.56m in 2017, before recovering to a new company record $225.69m in 2018. However, this suggests it could struggle to repeat recent breakneck rates of growth.

Despite its recent successes, it remains relatively high risk. But the potential rewards are high as well, as investors who were wiser than me and got in early will happily testify.

The post This remarkable nine-bagger has further to go appeared first on The Motley Fool UK.

Hybrid strategy

The Shanghai-based pharmaceutical company has an interesting hybrid strategy — it both develops pharmaceutical products and distributes them via 2,200 sales representatives across China. That’s an unusual approach in the industry, but it has so far been a success for the company.

The prescription drugs business is seen by the company as “a profitable and high growth platform” to launch its new products. And along with the benefits of revenue synergies, the business generates strong and steady cash flows, which offers diversification benefits and reduces its reliance on external financing.

One interesting growth driver that could push the stock forward is its promising pipeline of new drug treatments for cancer and inflammation. Chi-Med has eight drug candidates, with 30 active clinical trials currently under way. It also has extensive licensing, co-development and commercialisation partnership arrangements with big pharma players, including AstraZeneca and Eli Lilly.

The company today announced that it had initiated a Phase III trial of its savolitinib drug, with the aim that it could one day treat a rare form of kidney cancer. Chi-Med had been developing the drug with AstraZeneca, and the initiation of the late-stage trial triggered a $5m milestone payment to the company from the pharma giant.

“Based on the results of our Phase II study, we believe savolitinib has the potential to bring meaningful clinical benefit to patients with c-MET-driven PRCC,” it said.

Since its IPO back in 2006, Chi-Med has done very well by shareholders, with the value of its shares up almost 1,300%.

Cash windfall?

In other news today, mining giant Rio Tinto (LSE: RIO) announced that its shareholders had voted overwhelmingly in favour of the sale of its Australian coal assets to China-backed Yancoal Australia for $2.69bn.

The move comes as part of Rio’s efforts to reduce its exposure to the carbon-intensive fuel, which has come under increasing regulatory pressures. From now, the mining giant’s growth strategy would focus primarily on just three commodities: iron, aluminium and copper.

In today’s announcement, Chairman Jan du Plessis did not say whether the company would return the proceeds from the sale to shareholders, in spite of growing calls to increase buybacks and raise dividends. But given that Rio has one of the strongest balance sheets in the mining sector, with net debt of just $9.6bn and a gearing ratio of 17%, the likelihood that shareholders would at some point receive a significant windfall seems high.

Thanks to recent big cuts to its capital spending budget, improvements to operating cash costs, asset sales and higher commodity prices, Rio’s operating cash flow has recently improved substantially. In 2016, it generated free cash flow of $5.8bn, up from $0.7bn in the prior year, and as such, the miner returned about $3.6bn in cash to shareholders over the past year.

Looking ahead, City analysts expect Rio’s underlying earnings are set to climb 59% in 2017. If these estimates are accurate, they would leave shares in the company trading at just 8.1 times its expected earnings this year.

The post This forgotten growth stock deserves more attention appeared first on The Motley Fool UK.

Last month Chi-Med, along with its partner US pharmaceuticals giant Eli Lily, announced positive results from final stage clinical trials for Fruquintinib, its experimental treatment for Bowel Cancer. The new drug could be in a position to launch as early as next year once it gains approval from the China Food and Drug Administration.

Huge potential

I see huge potential here. Bowel cancer, also known as colorectal cancer, is the second most common type of cancer in China, with around 380,000 new cases each year. Globally the figure is estimated at 1.5m new cases annually. Chi-Med continues to press ahead with its promising pipeline, with eight new drugs currently in active clinical trials worldwide.

Full-year results for 2016 revealed a 21% increase in group revenue to $216.1m, with net attributable income to Chi-Med up 46% to $11.7m, compared to just $8m for 2015. The group’s Commercial Division which manufactures, markets and distributes prescription drugs and consumer health products in China, reported a 43% rise in consolidated sales to $180.9m, with sales of non-consolidated joint ventures up 14% to $446.5m.

Promising pipeline

However, these figures were offset by the group’s Innovation Platform which reported a $16.8m fall in revenues to $35.2m, along with a $40.7m loss as a result of research and development costs. I’m not too worried about these figures, as this is the division of Chi-Med responsible for developing the promising new pipeline of oncology and immunology drugs.

Perhaps not surprisingly, news of the positive drug trial combined with the very encouraging set of full-year results have helped propel the company’s share price to new all-time highs. But many believe this is just the start. Chi-Med also has high hopes for another cancer drug which it has been developing with Anglo-Swedish multinational AstraZeneca (LSE: AZN). Savolitinib is being developed for patients with multiple tumour types including kidney, lung and gastric cancers, and is currently in 12 active clinical studies worldwide.

Adventurous investors

Clearly Chi-Med is one for more adventurous investors hoping to capture big gains whilst accepting a higher level of risk. Of course, that may not be everyone’s cup of tea. Risk-averse investors may feel more comfortable parking their hard-earned cash with proven income generators like FTSE 100 blue chip AstraZeneca. Trading on a reasonable earnings multiple of 16 and offering a reliable dividend with a near-5% yield, Astra may be deemed boring but will probably help you sleep better at night.

Personally I think there is room for both Chi-Med and AstraZeneca in a well-balanced portfolio. Astra can continue to generate dependable income, while a small holding in Chi-Med could help appease our craving for excitement.

The post Does cancer breakthrough make this stock a better buy than AstraZenenca plc? appeared first on The Motley Fool UK.

The impact of wide risk aversion — combined with a failure of traders to factor in a possible Brexit — has seen the FTSE 100 lose 6% of its value since Friday’s open. The index is now below 6,000 points once again.

And the political and economic malaise in the coming weeks and months threatens to keep investors on their toes for some time yet.

Having said that, we at The Motley Fool believe that stock markets are still the best destination for good returns, given the pitifully low interest rates offered by cash ISAs, for example.  In this article I lay out some of the key points investors must consider in order to keep making splendid returns.

Go for brand power

In times of significant economic hardship — and consequent pressure on consumers’ wallets — the importance of brand power cannot be overstated.

Conventional thinking would suggest that shoppers pick the cheapest option available during such periods. But this is not always the case. Indeed, a combination of shrewd marketing and product innovation has proven to keep sales of popular labels of many FTSE companies — from ice cream and headache pills through to cigarettes —  ticking higher.

Consequently, I reckon the fortunes of  PZ Cussons (LSE: PZC) — manufacturer of brands like Imperial Leather, Original Source and Five:am organic yoghurts — will keep on rising.

New markets

On top of this, PZ Cussons also offers terrific emerging market exposure, thanks to its wide presence across Africa and Asia, a quality that significantly reduces its direct exposure to the impact of Brexit. And although these markets are cooling down, the growth rates here are still a lot stronger than those of the West. And I believe rising wealth levels here should blast consumer spending levels higher in the years ahead.

Indeed, I have previously tipped healthcare play Hutchison China MediTech (LSE: HCM) on the basis of its determination to become the largest pharmaceuticals developer in the Asian powerhouse.

But this is not the only hot developing market play out there — telecoms giant Vodafone and beverages play Diageo  also offer considerable exposure to emerging regions.

Pounding higher?

And some British-based exporters may actually gain from the pound’s fall following the UK’s vote to leave the European Union.

Just today sterling sank to fresh lows below $1.32, not seen since 1985. And HSBC expects the pound to slip as low as $1.20 by the end of the year.

This should benefit many British companies that export their goods abroad. Indeed, UBS estimates that profits over at defence giant Meggitt (LSE: MGGT) and diversified engineer GKN (LSE: GKN) benefit by 5% for every 10% fall in the value of sterling against the US dollar.

The post What are the safest places to store your money post-Brexit? appeared first on The Motley Fool UK.

In recovery

GlaxoSmithKline has been a serious casualty of the ‘generics’ wars that has bashed Big Pharma during the past few years.

The medicines giant saw sales of key labels Avodart and Seretide/Advair slump 15% and 13%, respectively, in 2015 against a backcloth of crumbling patent protection encouraging a swathe of new competitors to enter the marketplace.

However, GlaxoSmithKline has thrown the kitchen sink at replacing these blockbuster brands to drive group sales higher again. Indeed, the Brentford firm received marketing approval for its Nucala respiratory treatment in Japan, and Strimvelis rare disease drug in Europe, just in the past few weeks.

The drugs leviathan aims to secure 10 regulatory approvals in key growth areas like COPD in the next two years alone. And GlaxoSmithKline plans to start Phase II and III testing for another 30 potential sales drivers through to the end of 2017.

China star

As the name suggests, Hutchison China MediTech (or ‘Chi-Med’ as it’s popularly known) is aiming to deliver stunning earnings growth by taking Asian marketplaces by storm.

Emerging markets of course represent a key growth segment for the pharmaceuticals sector, where surging GDP expansion is underpinning massive increases in healthcare investment. Indeed, China’s Ministry of Finance plans to hike spending on “healthcare and family planning” by 47.2% in 2016 alone, to CNY12.4bn, Reuters reported in March.

And like GlaxoSmithKline, Chi-Med is embarking on exciting testing programmes to develop its own range of market-leading drugs. Just this month the company commenced ‘first-in-human’ clinical trials of its HMPL-689 small molecule inhibitor for the treatment of hematological cancers, for example.

Joints giant

At the other end of the spectrum, Smith & Nephew is steadily building its position as the world’s leading provider of artificial joints and limbs.

The company saw sales in established markets rise 6% during October-December, the biggest quarterly rise for more than three years. As well as solid organic growth, Smith & Nephew has shrewd purchases like that of ArthroCare in the Sports Medicine segment to thank for this improved performance.

And like GlaxoSmithKline and Chi-Med, Smith & Nephew views developing regions as a critical revenue driver in the years ahead. The joints play saw sales in these territories surge 11% in 2015 despite cyclical weakness in China. And purchases like that of its distributor EuroCiencia Colombia last year underline its faith in the potential of these marketplaces.

So what’s the verdict?

Well, on a pure value basis GlaxoSmithKline nudges ahead of its rivals at the current time. The company deals on a P/E rating of 17.5 times for 2016, and a proposed 80p-per-share dividend yields a smashing 5.3%.

By comparison, Smith & Nephew trades on an earnings multiple of 19.8 times and carries a payout yield of 1.9% (a 22.4p dividend is currently predicted). Meanwhile, Chi-Med is expected to keep racking up losses until 2017 at the earliest, and isn’t anticipated to furnish investors with a dividend any time soon, either.

That said, I believe each of the healthcare stocks here provide terrific long-term potential. Not only should a backcloth of population increases and rising affluence levels power healthcare investment across the globe, but all three operators are doubling-down on product development and acquisition activity to latch onto these positive trends.

The post Pharma fight! Should you buy GlaxoSmithKline plc, Smith & Nephew plc or Hutchison China MediTech Limited? appeared first on The Motley Fool UK.

Standard Chartered

At one time the highly-rated darling of the FTSE 100 banks, Asia-focused Standard Chartered has suffered a spectacular fall from grace. The shares, which were pushing close to £20 in 2010, were trading at just a tad over £4.40 when chief financial officer Andy Halford waded into the market last Thursday.

Mr Halford splashed out £616,644 on 140,000 shares, buying at a discount of more or less 50% to the bank’s tangible net asset value, and 10.6 times forecast 2017 earnings.

Of course, Standard Chartered is in the midst of a restructuring as it seeks to tighten risk controls and improve cost efficiency, so asset values and earnings forecasts may be vulnerable to downward revision. Judging the right time to buy into a recovery story is always difficult — and managing to buy at the very bottom is a matter of pure luck — but Mr Halford evidently sees good value at £4.40.

The shares are up to £4.66, as I’m writing, but that needn’t put you off: chief executive Bill Winters and a number of other execs saw value at around £6 when buying heavily four months ago.

Hutchison China MediTech

Hutchison China MediTech (Chi-Med) holds the distinction of being a rare London-listed Chinese company that hasn’t destroyed investors’ wealth and disappeared into oblivion.

The AIM-listed healthcare group had already grown to be valued at over £1bn before recently also listing $101m of American depositary shares (ADSs) on the Nasdaq stock exchange.

At the end of last week, Chi-Med’s chief executive, Christian Hogg, bought 36,600 ADSs at $13.50 a pop. An ADS represents one half of one ordinary share, so Mr Hogg’s purchase was the equivalent of 18,300 shares at a bit over £19, for a total outlay of around £350,000.

Chi-Med’s revenues are growing fast — up 104% last year — but the company continues to plough profits from its commercial arm (prescription and over-the-counter business) into advancing its exciting drugs pipeline. The company is difficult to value, but you can buy the shares today at the same level at which the chief executive was happy to buy.

Britvic

Soft drinks group Britvic has made a strong recovery since the 2008/9 financial crisis, including fighting off a takeover bid by fellow FTSE 250 firm AG Barr in 2013. However, Britvic’s shares have been moving sideways in a £6.50 to £7.50 trading range for a couple of years. There’s been no significant director buying during the period … until this month.

New non-executive director Sue Clark (also currently managing director of SABMiller Europe) made a maiden purchase of 15,000 Britvic shares at just above £7 a share, for a total investment of £105,235 — or, about twice her basic fee as a non-exec.

The purchase came after Chancellor George Osborne’s budget announcement of a sugar levy on soft drinks. The shares are only marginally higher today, and a rating of around 15 times forecast earnings for the company’s financial year ending 30 September, with a dividend yield above 3%, looks decent value.

The post Should You Follow Directors Buying Shares At Standard Chartered PLC, Hutchison China MediTech Limited And Britvic Plc? appeared first on The Motley Fool UK.

In fashion

ASOS has certainly been one of the most famous AIM shares of recent years and with good reason. The online-only fast fashion retailer has carved a significant niche for itself with young shoppers. The company has taken advantage of its strong social media presence to grow revenue by leaps and bounds, with sales up a whopping 23% in the past quarter alone.

This revenue growth hasn’t turned into bumper profits because of its meagre operating margins of 4.1%. Management’s answer to this has been to bring other brands on board to the website and social media accounts, a smart move to diversify revenue.

However, I remain doubtful the company can continue living up to the high expectations it has set itself. Shares may have halved from their 2014 peak but they still trade at an astronomical 58 times forward earnings. I don’t believe its core business of low-end fast fashion will ever offer sufficient pricing power to increase profits enough to meet this sky-high valuation.

Risks and rewards

Internet of Things (IoT) device maker Telit Communications is another former high flyer whose shares have come back down to earth recently. The IoT market, which connects devices as varied as refrigerators and cars to the internet, is expected to continue growing nearly exponentially. But investors are increasingly worried that relative minnow Telit will be squeezed out by larger competitors.

This is a very valid concern, and I believe the future for Telit will hinge on its services division. The support services it offers to small companies allows them to embed IoT devices in their products, and Telit will work with them to sift through and utilise the massive amounts of data produced. Sales in the services division grew by 30% last year, but still remain a small portion of overall revenues. If the company can continue to capitalise on this success, its shares may be quite cheap at 13 times forward earnings.

Set for the big time?

Hutchison China MediTech is attempting to take advantage of China’s prodigious output of highly-educated scientists to create the country’s own homegrown global pharma giant. The company, which is controlled by Hong Kong conglomerate CK Hutchison, has so far funded high R&D costs by creating a cross-country sales network for outside prescription drugs. This strategy has paid off so far with revenue growing by 104% last year alone as the in-house innovation division begins to add to the bottom line.

The company is aiming for 25 clinical trials by mid 2016 and could send its first drug for US approval as early as later this year. And, its agreements with major global brands such as AstraZeneca and Eli Lilly bring in significant revenue each time a drug makes it to the next stage of development. If any of these myriad drugs pay off big time, shareholders could be in for great returns.

The post Could AIM Stars ASOS Plc, Telit Communications Plc And Hutchison China MediTech Limited Fund Your Retirement? appeared first on The Motley Fool UK.