“There are three divisions to Hutchinson China Meditech – the Healthcare division, Drug R&D and the Consumer Products Division. The business is focused primarily on China. The benefit of this is that as the Chinese population becomes more affluent there is a significant upturn in those signing up for medical insurance and also by the government on national healthcare.
”The stock has performed well lately as there has been positive news flow about joint ventures and drug trials. However, this is a high risk ‘buy’ idea for investors seeking exposure to China.”