REG - Hutchmed China Ltd - 2025 Interim Results

HUTCHMED (China)Announcement

07/08/2025 12:00

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RNS Number : 4082U  Hutchmed (China) Limited  07 August 2025

HUTCHMED Reports 2025 Interim Results

 

- Indications expansion driving growth and ATTC platform enriching pipeline -

 

- $455 million in net income attributable to HUTCHMED driven by non-core
partial disposal -

 

Hong Kong, Shanghai & Florham Park, NJ - Thursday, August 7, 2025:
HUTCHMED (China) Limited ("HUTCHMED (https://www.hutch-med.com/) ", the
"Company" or "we") (Nasdaq/AIM:HCM; HKEX:13) today reports its financial
results for the six months ended June 30, 2025 and provides updates on key
clinical and commercial developments.

 

HUTCHMED to host results webcasts today at 8:00 a.m. EDT / 1:00 p.m. BST /
8:00 p.m. HKT in English on Thursday, August 7, 2025, and tomorrow at
8:30 a.m. HKT in Chinese (Putonghua) on Friday, August 8, 2025. After
registration, investors may access the live webcast at www.hutch-med.com/event
(https://www.hutch-med.com/event/) .

 

All amounts are expressed in US dollars unless otherwise stated. A list of
abbreviations is in the Glossary on page 29.

 

Global commercial progress and delivery of sustainable growth

 

·      ORPATHYS(®) (savolitinib) secured China approval of its third
lung cancer indication for EGFRm NSCLC patients with MET amplification after
progression on EGFR inhibitor treatment in combination with TAGRISSO(®)
(osimertinib) on June 30, 2025, in time to be eligible for potential national
reimbursement negotiation towards the end of this year. This combination
offers the only oral, chemotherapy-free approach to a sizable percentage
(~30%) of these patients. The approval triggered a $11.0 million milestone
payment from AstraZeneca which markets both ORPATHYS(®) and TAGRISSO(®).

·      FRUZAQLA(®) (fruquintinib ex-China) in-market sales by Takeda
were up 25% to $162.8 million (H1-24: $130.5m) as its geographical coverage
expanded to more than 30 countries. ELUNATE(®) (fruquintinib China) achieved
$43.0 million (H1-24: $61.0m) reflecting intensifying competitive pressures
and streamlining of our salesforce structure, but growth has returned
recently. Total Oncology/Immunology consolidated revenue, including milestone
and service income, was $143.5 million (H1-24: $168.7m).

·      Net income attributable to HUTCHMED of $455.0 million was
achieved in the first half of 2025 (H1-24: $25.8m), with a cash balance of
$1.36 billion as of June 30, 2025, significantly boosted by a $416.3 million
divestment gain, net of tax from the disposal of a partial equity stake in a
non-core joint venture and divestment proceeds.

 
Pipeline progress and new technology platform

 

·      Positive results from the SACHI China and SAVANNAH global lung
cancer trials of ORPATHYS(®) in combination with TAGRISSO(®) were presented
at ASCO and ELCC conferences. SACHI showed mPFS of 8.2 months with this oral
combination compared to 3.0 months with chemotherapy, and SAVANNAH showed 7.4
months with this oral combination. This is the only treatment option that
demonstrated statistically significant results in a biomarker-directed pivotal
clinical trial in MET amplified, EGFR TKI refractory NSCLC patients.
Enrollment in the SAFFRON global Phase III trial is expected to complete in
the second half of this year and readout in the first half of 2026.

·      Phase II/III trial on SULANDA(®) (surufatinib) in combination
with AiRuiKa(®) (camrelizumab) and chemotherapy for previously-untreated
metastatic pancreatic cancer patients is progressing well, targeting data
readout in the second half of 2025. An earlier study presented promising
updated data at ASCO with ORR of 51.1% (vs 24.4% with chemotherapy) and mPFS
of 7.9 months (vs 5.4 months).

·      Positive FRUSICA-2 Phase III results supported the China approval
submission for ELUNATE(®) with TYVYT(®) (sintilimab) in previously-treated
kidney cancer. Details to be presented at ESMO Congress. Prior Phase Ib/II
study showed ORR of 60.0% and mPFS of 15.9 months.

·      New Antibody-Targeted Therapy Conjugates (ATTC) platform drug
candidates have been selected, planning to enter clinical development in late
2025. We also plan to present pre-clinical data at a scientific conference
before the end of this year. Successful development of multiple ATTC molecules
is expected to lead to collaboration and licensing opportunities in the
future. Initial responses from potential partners are very positive.

 

Dr Dan Eldar, Non-executive Chairman of HUTCHMED, said, "With a strong
balance sheet, robust operations and an exciting new ATTC platform, HUTCHMED
is ready to enter a new phase of growth. Partnering is still a strategic
focus, with multinational pharmaceutical companies remaining favorable towards
such licensing opportunities with China biotech companies. In recent months we
have seen markets' sentiment and performance have significantly improved.
China domestic drug policy and pricing environment also manifest strengthened
support for innovative drug development, with the potential introduction of a
commercial insurance drug list later this year, targeting a diversified,
multi-layered healthcare social security payment system down the road.

 

We intend to prudently and actively deploy resources to expedite the
development of a series of drug candidates from our novel ATTC platform,
including synchronous clinical development in China and overseas. Our 20 years
of knowledge of in-house discovery, experience in running large-scale pivotal
trials, collaboration with international partners and success in obtaining
global regulatory approvals empower us to bring forth more innovative
medicines to address large unmet needs around the world."

 

Dr Weiguo Su, Chief Executive Officer and Chief Scientific Officer of
HUTCHMED, said, "We concluded the first half of 2025 with several important
milestones achieved, some earlier than expected. The presentation of SACHI
data at ASCO in a late-breaking oral presentation at the beginning of June was
impressive, validating both the clinical strength and commercial advantages of
ORPATHYS(®) in the market. This is the first biomarker-selected pivotal study
globally for EGFR TKI refractory lung cancer patients, demonstrating clear
clinical benefits for these patients. The China approval of ORPATHYS(®) at
the end of June for this indication, six months after filing acceptance, was
ahead of schedule and in time to qualify for national reimbursement
negotiation. Also in June, the third indication of ELUNATE(®) for kidney
cancer was accepted for review by the NMPA, supported by positive data in the
FRUSICA-2 Phase III trial, to be presented at ESMO Congress. We also launched
TAZVERIK(®) (tazemetostat), our first hematological oncology drug, in July
following approval in March.

 

We believe sales growth should improve in second half of 2025, with the help
of indication expansion in China and better market penetration overseas. In
the near term, we shall start clinical development of multiple drug candidates
from our ATTC program, a crucial technology platform, which will enrich our
pipeline and provide ample partnership opportunities."

 

2025 Interim Results & Business Updates

 

I. COMMERCIAL OPERATIONS

 

FRUZAQLA(®) in-market sales by Takeda were up 25% in the first half of 2025
at $162.8 million, driven by strong growth following approvals in more than 30
countries to date, including over 10 new markets in 2025. Reimbursement was
received in the US, Spain and Japan last year, and, in July 2025, positive
recommendation was received for NHS reimbursement in England and Wales.

 

The China pharmaceutical sector has gone through multifaceted changes. To
position HUTCHMED for sustainable long-term growth, HUTCHMED has streamlined
its sales force to establish a more efficient commercial organization and
enhance productivity. In the face of intensifying competition as its products
mature, HUTCHMED has strengthened its strategy to continue to focus on
science-driven commercial activities to further differentiate its products. In
the first half of 2025, in-market sales in China for ELUNATE(®), SULANDA(®)
and ORPATHYS(®) decreased as compared to the first half of 2024, reflecting
competition and the transitional effects of the changes in our sales team and
marketing strategy.

 

Total in-market sales were down 4%. Consolidated revenue dropped 22% due to
lower China in-market sales, offset by flat FRUZAQLA(®) revenue.

 

Other Oncology/Immunology revenue, consisting of upfront or milestones,
R&D services and licensing to our partners increased 9% to $44.4 million.
Revenue from Other Ventures, comprising prescription drug distribution,
remained flat, leading to total consolidated revenue of $277.7 million, down
9%.

 

 (Unaudited, $ in millions)  In-market Sales*                                        Consolidated Revenue**
                             H1 2025       H1 2024       %Δ            (CER)         H1 2025  H1 2024  %Δ      (CER)
 FRUZAQLA(®)                 $162.8        $130.5        +25%          (+25%)        $43.1    $42.8    +1%     (+1%)
 ELUNATE(®)                  $43.0         $61.0         -29%          (-29%)        $33.6    $46.0    -27%    (-27%)
 SULANDA(®)                  $12.7         $25.4         -50%          (-50%)        $12.7    $25.4    -50%    (-50%)
 ORPATHYS(®)                 $15.2         $25.9         -41%          (-41%)        $9.0     $13.1    -32%    (-32%)
 TAZVERIK(®)                 $0.7          $0.5          +49%          (+49%)        $0.7     $0.5     +49%    (+49%)
 Oncology Products           $234.4        $243.3        -4%           (-4%)         $99.1    $127.8   -22%    (-22%)
 Takeda upfront, regulatory milestones and R&D services                              $29.5    $33.8    -13%    (-13%)
 Other revenue (R&D services and licensing)                                          $14.9    $7.1     +111%   (+111%)
 Total Oncology/Immunology                                                           $143.5   $168.7   -15%    (-15%)
 Other Ventures                                                                      $134.2   $137.0   -2%     (-1%)
 Total Revenue                                                                       $277.7   $305.7   -9%     (-9%)

* FRUZAQLA(®), ELUNATE(®) and ORPATHYS(®) mainly represent total sales to
third parties as provided by Takeda, Eli Lilly and AstraZeneca, respectively.

** FRUZAQLA(®) represents manufacturing revenue and royalties paid by
Takeda; ELUNATE(®) represents manufacturing revenue, promotion and marketing
services revenue and royalties paid by Eli Lilly to HUTCHMED, and sales to
other third parties invoiced by HUTCHMED; ORPATHYS(®) represents
manufacturing revenue and royalties paid by AstraZeneca to HUTCHMED and sales
to other third parties invoiced by HUTCHMED; SULANDA(®) and TAZVERIK(®)
represent the HUTCHMED's sales of the products to third parties.

 

II. REGULATORY UPDATES

 

·      Savolitinib sNDA approved by the NMPA for 2L EGFRm NSCLC patients
with MET amplification, in combination with TAGRISSO(®), triggering $11.0
million milestone from AstraZeneca, in June 2025.

·      Savolitinib sNDA approved by the NMPA for 1L and 2L (converted
from conditional to full approval) METex14 NSCLC in January 2025. Savolitinib
approved in Hong Kong for METex14 NSCLC under the 1+ Mechanism in February
2025.

·      Tazemetostat NDA conditionally approved by the NMPA for 3L R/R
follicular lymphoma with EZH2 mutation in March 2025.

 

III. LATE-STAGE CLINICAL DEVELOPMENT ACTIVITIES

 

Savolitinib (ORPATHYS(®) in China), a highly selective oral inhibitor of MET

 

·      Presented SACHI China Phase III results at ASCO 2025 for 2L EGFRm
NSCLC patients with MET amplification, in combination with TAGRISSO(®),
showing mPFS of 8.2 months compared to 4.5 months with chemotherapy in ITT
population (HR 0.34), and 6.9 months compared to 3.0 months in post
third-generation EGFR TKI-treated subgroup (HR 0.32, both p<0.0001)
(NCT05015608).

·      Presented SAVANNAH global Phase II results at ELCC 2025 for 2L
EGFRm NSCLC patients with MET amplification or overexpression, in combination
with TAGRISSO(®), showing ORR of 56%, mPFS of 7.4 months and mDoR of 7.1
months (NCT03778229).

·      Continued enrolling SAFFRON global Phase III study for 2L EGFRm
NSCLC patients with MET amplification or overexpression (NCT05261399) and the
study will potentially support global filings; and SANOVO China Phase III
study for 1L EGFRm NSCLC patients with MET overexpression (NCT05009836).

·      Completed enrollment of China Phase II registrational study for
3L gastric cancer patients with MET amplification (NCT04923932).

 
Potential upcoming clinical milestones for savolitinib:

 

·      Complete SAFFRON Phase III enrollment in the second half of 2025,
data readout in the first half of 2026.

·      Complete SANOVO China Phase III enrollment in the second half of
2025.

 
Fruquintinib (ELUNATE(®) in China, FRUZAQLA(®) outside of China), a selective oral inhibitor of VEGFR

 

·      Positive results of FRUSICA-2 China Phase III in 2L RCC in March
2025 (NCT05522231).

·      Presented China Phase II IIT results at AACR, in combination with
TUOYI(®) (toripalimab) or TYVYT(®), in 2L and above MSS/pMMR CRC, showing
mPFS of 13.2 months and mOS of 29.0 months (NCT04483219).

 
Sovleplenib (HMPL-523), an investigative and highly selective oral inhibitor of Syk

 

·      Ongoing ESLIM-01 ITP NMPA NDA review stipulates a lower impurity
limit, requiring further manufacturing validation and stability test. Target
re-submission in first half of 2026, with additional data rolling in during
second half of 2026. In the future, the company will look to continue overseas
development.

·      Published China Phase II results in warm AIHA in China at EHA and
in The Lancet Haematology in 2025, demonstrating overall response rate of
66.7% and a favorable safety profile (NCT05535933).

·      Completed ESLIM-02 China Phase III enrollment for warm AIHA in
June 2025 (NCT05535933).

Potential upcoming regulatory milestones for sovleplenib:

·      ESLIM-01 NMPA NDA re-submission in first half of 2026
(NCT05029635).

·      ESLIM-02 NMPA sNDA submission in first half of 2026
(NCT05535933).

 
Surufatinib (SULANDA(®) in China), an oral inhibitor of VEGFR, FGFR and CSF-1R

 

Potential upcoming clinical milestone for surufatinib:

 

·      Data readout of Phase II part of a China Phase II/III
HUTCHMED-sponsored trial for 1L metastatic PDAC patients, in combination with
AiRuiKa(®), nab-paclitaxel and gemcitabine in late 2025 (NCT06361888).

 
Tazemetostat (TAZVERIK(®) in China), a first-in-class, oral inhibitor of EZH2

 

·      TAZVERIK(®) NDA approved by the NMPA for 3L R/R follicular
lymphoma with EZH2 mutation.

·      Continued enrolling SYMPHONY-1 China portion of the Phase III
portion of the global study, in combination with lenalidomide and rituximab,
in 2L follicular lymphoma patients (NCT04224493).

 
Fanregratinib (HMPL-453), a novel, highly selective and potent inhibitor targeting FGFR 1, 2 and 3

 

·      Completed enrollment of China Phase II registrational trial for
IHCC with FGFR fusion / rearrangement in February 2025 (NCT04353375).

 
Ranosidenib (HMPL-306), an investigative and highly selective oral dual-inhibitor of IDH1 and IDH2 enzymes

 

·      Continued enrolling RAPHAEL China Phase III trial for 2L R/R
IDH1/2-mutant AML (NCT06387069).

 
IV. ANTIBODY-TARGETED THERAPY CONJUGATE (ATTC) PLATFORM
 
New in-house created platform with multiple potential IND candidates

 

HUTCHMED plans to initiate China and global clinical trials for our first ATTC
drug candidate around the end of 2025, followed by multiple global IND filings
for more ATTC candidates in 2026.

 

Our ATTC next-generation technology platform leverages over 20 years of
expertise in targeted therapies with small molecules inhibitors. By linking a
monoclonal antibody with a proprietary targeted small-molecule inhibitor (SMI)
payload, our ATTC platform has the capability to derive multiple drug
candidates targeting various oncology indications, including precision
medicine against selective sub-types. These ATTC drug candidates enrich the
next wave of clinical development with potential key advantages over
traditional antibody-drug conjugates and/or small molecule medicines.

 

·      Better efficacy through synergistic antibody-small molecule
targeted therapy combinations that will target specific mutations; overcome
drug resistance to existing treatment.

·      Improved safety and prolonged treatment given lower off-tumor or
off-target toxicity than small molecules, lower risk of myelosuppression and
better safety than cytotoxin-based conjugates.

·      Attractive pharmacokinetics tackles difficult drug targets,
enabled by antibody-guided delivery to target sites which will improve
bioavailability and reduce drug-drug interactions.

·      Advantages over existing ADCs due to lower off-tumor toxicities
from the SMI payload, released through lysosomal cleavage inside target cells,
targets cell signaling pathway driven by mutation specific to tumor cells. It
can be used in combination with established standard therapies such as
chemotherapy and immunotherapy to further enhance efficacy.

·      Potential first-line applications, as chemo-free ATTC can
potentially support combinations with other targeted therapies, chemotherapy
and immunotherapy, in early-line settings with broad market potential.

 

V. COLLABORATION UPDATES

Further progress of candidate IMG-007, discovered by HUTCHMED

 

·      ImageneBio, Inc. (Nasdaq: IMA) - Inmagene and Ikena Oncology,
Inc. completed a merger on July 25, 2025 and ImageneBio, Inc., the merged
entity, holds the license rights to IMG-007 granted by HUTCHMED. HUTCHMED has
an approximate 3.67% shareholding in ImageneBio, Inc.

·      Announced positive results of a US/Canada Phase IIa study of
IMG-007 for atopic dermatitis in April 2025, showing week 16 mean change in
EASI of 77% and EASI-75 response of 54% (NCT05984784).

·      Dosed the first patient in a US Phase IIb randomized,
double-blind, placebo-controlled dose-finding study of IMG-007 for
moderate-to-severe atopic dermatitis in July 2025, targeting to enroll 220
patients who have had inadequate response to and/or intolerance of topical
therapies (NCT07037901).

·      Announced positive results of a US/Canada Phase IIa study of
IMG-007 for severe alopecia areata in January 2025, showing mean reduction
from baseline in Severity of Alopecia Tool (SALT) score of 30.1% by week 36
(NCT06060977).

 

VI. OTHER VENTURES

 

·      Other Ventures consolidated revenue, predominantly from the
prescription drug distribution business in China, were steady at $134.2
million for the six months ended June 30, 2025.

·      HUTCHMED divested a 45.0% equity interest in SHPL for $608.5
million in cash in April 2025, retaining a 5.0% equity interest. A divestment
gain, net of tax of $416.3 million was recognized during the first half of
2025. As a result, HUTCHMED's share of equity in earnings of SHPL decreased to
$23.1 million for the six months ended June 30, 2025.

·      Consolidated net income attributable to HUTCHMED from Other
Ventures increased to $440.3 million (H1-24: $34.1m), primarily due to the
SHPL interest disposal.

 

VII. SUSTAINABILITY

 

In April 2025, the 2024 Sustainability Report
(https://www.hutch-med.com/wp-content/uploads/2025/04/HCM-SusRpt-2024.pdf) was
published, highlighting the progress made in 11 goals and targets and enhanced
climate actions, including improved Scope 3 data, tightened control over air
travel and engagement with suppliers. This year, a comprehensive climate risks
assessment is being conducted to further understand and quantify the potential
financial impacts of climate change, including physical risks brought by
flooding and heat stress, and transition risks for HUTCHMED under optimistic
and pessimistic scenarios.

 

HUTCHMED has made notable progress in its ESG ratings, including ratings from
CDP Worldwide, the Hang Seng Corporate Sustainability Index Series, ISS ESG,
MSCI ESG, Sustainalytics, and S&P Global ESG. In May 2025, HUTCHMED ranked
third in ESG Excellence in the Healthcare, Pharmaceutical, and Biotechnology
sector in the Extel's Asia Executive Team survey, reflecting feedback from
over 5,400 portfolio managers and analysts. Extel ranked HUTCHMED as one of
the Most Honored Companies; ranked it first in Best Board of Directors, Best
CEO, Best IR Program and Best IR Professionals; as well as second in Best CFO
and Best IR Team in the Healthcare, Pharmaceutical, and Biotechnology sector.

 

Financial Highlights

 

Revenue for the six months ended June 30, 2025 was $277.7 million compared to $305.7 million for the six months ended June 30, 2024.

 

·      Oncology/Immunology consolidated revenue amounted to $143.5
million (H1-24: $168.7m):

§ FRUZAQLA(®) revenue was $43.1 million (H1-24: $42.8m), reflecting
continued growth in royalties, offset by reduced manufacturing revenue
compared to its launch year. In-market sales by Takeda were $162.8 million (up
25%) driven by strong growth following approvals in more than 30 countries to
date, including over 10 new markets in 2025.

§ ELUNATE(®) revenue decreased to $33.6 million (H1-24: $46.0m) in its
seventh year since launch, comprising manufacturing revenue, promotion and
marketing services revenue and royalties. In-market sales decreased to $43.0
million, reflecting the intensifying competitive pressures from combination
therapies of key competing products and their additional generics and
biosimilars entry in 3L CRC. The launch of the entry of the new indication 2L
EMC in 2025 and continuous inclusion of ELUNATE(®) in key guidelines are
expected to drive future growth.

§ SULANDA(®) revenue decreased to $12.7 million (H1-24: $25.4m) in the face
of strong competition for NET patients from new somatostatin analogues drugs
with their inclusion in the NRDL and broader coverage. To counteract this
challenge, we continue to drive awareness and product differentiation to
uphold SULANDA(®) position in TKI.

§ ORPATHYS(®) revenue decreased to $9.0 million (H1-24: $13.1m) on in-market
sales of $15.2 million, impacted by the launch and NRDL inclusion of several
competing drugs for METex14 skipping NSCLC. Such results have not reflected
expected growth from the recent approval for the much larger EGFR
TKI-refractory, MET-amplified NSCLC patient population at the end of June
2025.

§ TAZVERIK(®) revenue was $0.7 million (H1-24: $0.5m) mainly from sales in
Hainan and Hong Kong. Launched in mainland China in July 2025 following its
approval in March 2025.

§ Takeda upfront, regulatory milestones and R&D services revenue were
$29.5 million (H1-24: $33.8m), of which $26.6 million was recognized from
Takeda deferred revenue.

§ Other revenue of $14.9 million (H1-24: $7.1m), includes regulatory
milestone of $11.0 million from AstraZeneca following China NDA approval for
ORPATHYS(®) combined with TAGRISSO(®).

·      Other Ventures consolidated revenue of $134.2 million (H1-24:
$137.0m) remained flat.

Net Expenses for the six months ended June 30, 2025 were $239.0 million compared to $279.9 million for the six months ended June 30, 2024, reflecting strong cost control efforts.

 

·      Cost of Revenue decreased 7% to $167.6 million (H1-24: $180.1m),
which was mainly due to lower Oncology/Immunology revenue. Cost of revenue as
a percentage of oncology product revenue remained stable at 39% (H1-24: 38%).

·      R&D Expenses reduced by 24% to $72.0 million (H1-24: $95.3m).
While R&D investment outside of China reduced to $7.6 million (H1-24:
$14.9m) as we continued to integrate our global R&D operations with China,
the decrease was mainly driven by China with R&D investment of $64.4
million (H1-24: $80.4m) reflecting lower costs from completed studies which
are under NDA review (e.g. ELUNATE(®) in 2L RCC) or already led to NMPA
approval in H1-25 (e.g. ORPATHYS(®) in 2L NSCLC). Joint China and global
clinical development effort ongoing to gear up for multiple drug candidates
from our ATTC program.

·      S&A Expenses were $41.6 million (H1-24: $57.8m). The decrease
was mainly due to a reduction in S&A expenses for oncology products which
was $13.4 million or 13.5% of oncology product revenue (H1-24: $25.1 million
or 19.6%) as sales force structure was streamlined and tighter spending
controls imposed.

·      Other Items generated net income of $42.2 million (H1-24:
$53.3m), mainly comprised of equity in earnings of SHPL, interest income and
expense, foreign exchange and taxes. The decrease was primarily due to lower
share of equity in earnings of SHPL at $23.1 million (H1-24: $33.8m) as our
share decreased to 5% (H1-24: 50%) after the divestment of a partial stake in
SHPL completed in April 2025.

Gain on divestment of SHPL, net of tax was $416.3 million for the six months ended June 30, 2025.

 

Net Income attributable to HUTCHMED for the six months ended June 30, 2025 was $455.0 million compared to $25.8 million for the six months ended June 30, 2024.

 

·      The net income attributable to HUTCHMED for the six months ended
June 30, 2025 was $0.53 per ordinary share / $2.65 per ADS (H1-24: $0.03 per
ordinary share / $0.15 per ADS).

Cash, Cash Equivalents and Short-Term Investments were $1,364.5 million as of June 30, 2025 compared to $836.1 million as of December 31, 2024.

 

·      Adjusted Group (non-GAAP) net cash inflows excluding financing
activities in the first half of 2025 were $519.1 million mainly due to the
receipt of $608.5 million gross proceeds from the partial divestment of SHPL,
offset with the $59.5 million capital gain tax payment for the partial
divestment of SHPL, $10.0 million regulatory approval milestone payment and
$9.2 million in capital expenditures (H1-24: -$51.3m mainly due to $39.8
million net cash used in operating activities and $10.1 million of capital
expenditures).

·      Net cash generated from financing activities in the first half of
2025 totaled $9.3 million mainly due to drawdowns of bank borrowings of $8.2
million (H1-24: net cash used in financing activities of $32.6m mainly due to
purchases for equity awards of $36.1 million).

 

Foreign exchange impact: The RMB depreciated against the US dollar on average
by approximately 0.8% during the first half of 2025, which has impacted
consolidated financial results as highlighted.

 
FINANCIAL GUIDANCE

 

HUTCHMED updates full year 2025 guidance for Oncology/Immunology consolidated
revenue to $270 million - $350 million due to the phasing of milestone income
from partners to 2026 and onwards, as well as the estimated delay of
sovleplenib China NDA review completion to after 2025. HUTCHMED will leverage
its strong cash resources to accelerate ATTC global development and explore
investment opportunities.

 

Shareholders and investors should note that:

 

·      The Company does not provide any guarantee that the statements
contained in the financial guidance will materialize or that the financial
results contained therein will be achieved or are likely to be achieved; and

·      The Company has in the past revised its financial guidance and
reference should be made to any announcements published by it regarding any
updates to the financial guidance after the date of publication of this
announcement.

 

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Use of Non-GAAP Financial Measures and Reconciliation - References in this
announcement to adjusted Group net cash flows excluding financing activities
and financial measures reported at CER are based on non-GAAP financial
measures. Please see the "Use of Non-GAAP Financial Measures and
Reconciliation" for further information relevant to the interpretation of
these financial measures and reconciliations of these financial measures to
the most comparable GAAP measures, respectively.

---

 

Financial Summary

 

Condensed Consolidated Balance Sheets Data

 

 (in $'000)                                            As of                 As of December 31, 2024

June 30, 2025
 Assets                                                (Unaudited)
 Cash and cash equivalents and short-term investments  1,364,520             836,110
 Accounts receivable                                   146,967               155,537
 Other current assets                                  80,840                74,908
 Property, plant and equipment                         94,573                92,498
 Investment in an equity investee                      3,645                 77,765
 Other non-current assets                              85,395                37,378
 Total assets                                          1,775,940             1,274,196
 Liabilities and shareholders' equity
 Accounts payable                                      43,725                42,521
 Other payables, accruals and advance receipts         221,061               256,124
 Deferred revenue                                      77,628                98,503
 Bank borrowings                                       93,444                82,806
 Other liabilities                                     98,159                22,389
 Total liabilities                                     534,017               502,343
 Company's shareholders' equity                        1,229,064             759,929
 Non-controlling interests                             12,859                11,924
 Total liabilities and shareholders' equity            1,775,940             1,274,196

 

Condensed Consolidated Statements of Operations Data

 

 (Unaudited, in $'000, except share and per share data)          Six months ended June 30,
                                                                 2025                    2024
 Revenue:
 Oncology/Immunology - Marketed Products                         99,039                  127,796
 Oncology/Immunology - R&D                                       44,408                  40,841
 Oncology/Immunology Consolidated Revenue                        143,447                 168,637
 Other Ventures                                                  134,230                 137,044
 Total revenue                                                   277,677                 305,681

 Operating expenses:
 Cost of revenue                                                 (167,577)               (180,135)
 Research and development expenses                               (71,990)                (95,256)
 Selling and administrative expenses                             (41,624)                (57,811)
 Total operating expenses                                        (281,191)               (333,202)

                                                                 (3,514)                 (27,521)
 Gain on divestment of an equity investee                        477,456                 -
 Other income, net                                               21,650                  22,765
 Income/(loss) before income taxes and equity in earnings of an  495,592                 (4,756)
 equity investee
 Income tax expense                                              (2,029)                 (2,886)
 Income tax expense - Divestment of an equity investee           (61,133)                -
 Equity in earnings of an equity investee, net of tax            23,125                  33,807
 Net income                                                      455,555                 26,165
 Less: Net income attributable to non-controlling interests      (601)                   (364)
 Net income attributable to HUTCHMED                             454,954                 25,801

 Earnings per share attributable to HUTCHMED (US$ per share)
 - basic                                                         0.53                    0.03
 - diluted                                                       0.52                    0.03
 Number of shares used in per share calculation
 - basic                                                         857,038,725             856,030,704
 - diluted                                                       872,564,513             872,534,466

 Earnings per ADS attributable to HUTCHMED (US$ per ADS)
 - basic                                                         2.65                    0.15
 - diluted                                                       2.61                    0.15
 Number of ADSs used in per ADS calculation
 - basic                                                         171,407,745             171,206,141
 - diluted                                                       174,512,903             174,506,893

 

About HUTCHMED

 

HUTCHMED (Nasdaq/AIM:HCM; HKEX:13) is an innovative, commercial-stage,
biopharmaceutical company. It is committed to the discovery and global
development and commercialization of targeted therapies and immunotherapies
for the treatment of cancer and immunological diseases. Since inception it has
focused on bringing drug candidates from in-house discovery to patients around
the world, with its first three medicines marketed in China, and the first of
which is also approved around the world including in the US, Europe and Japan.
For more information, please visit: www.hutch‑med.com
(https://www.hutch-med.com/) or follow us on LinkedIn
(https://www.linkedin.com/company/hutchmed/) .

 

Contacts

 

 Investor Enquiries                                       +852 2121 8200 / ir@hutch-med.com (mailto:ir@hutch-med.com)

 Media Enquiries
 FTI Consulting -                                         +44 20 3727 1030 / HUTCHMED@fticonsulting.com
                                                          (mailto:HUTCHMED@fticonsulting.com)
     Ben Atwell / Alex Shaw                                  +44 7771 913 902 (Mobile) / +44 7779 545 055 (Mobile)
 Brunswick - Zhou Yi                                      +852 9783 6894 (Mobile) / HUTCHMED@brunswickgroup.com
                                                          (mailto:HUTCHMED@brunswickgroup.com)

 Panmure Liberum                                          Nominated Advisor and Joint Broker
 Atholl Tweedie / Emma Earl / Rupert Dearden              +44 20 7886 2500

 Cavendish                                                Joint Broker
 Geoff Nash / Nigel Birks                                 +44 20 7220 0500

 Deutsche Numis                                           Joint Broker
 Freddie Barnfield / Jeffrey Wong / Duncan Monteith       +44 20 7260 1000

 
References

 

Unless the context requires otherwise, references in this announcement to the
"Group," the "Company," "HUTCHMED," "HUTCHMED Group," "we," "us," and "our,"
mean HUTCHMED (China) Limited and its subsidiaries unless otherwise stated or
indicated by context.

 
Past Performance and Forward-Looking Statements

 

The performance and results of operations of the Group contained within this
announcement are historical in nature, and past performance is no guarantee of
future results of the Group. This announcement contains forward-looking
statements within the meaning of the "safe harbor" provisions of the US
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by words like "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," "pipeline," "could,"
"potential," "first-in-class," "best-in-class," "designed to," "objective,"
"guidance," "pursue," or similar terms, or by express or implied discussions
regarding potential drug candidates, potential indications for drug candidates
or by discussions of strategy, plans, expectations or intentions. You should
not place undue reliance on these statements. Such forward-looking statements
are based on the current beliefs and expectations of management regarding
future events, and are subject to significant known and unknown risks and
uncertainties. Should one or more of these risks or uncertainties materialize,
or should underlying assumptions prove incorrect, actual results may vary
materially from those set forth in the forward-looking statements. There can
be no guarantee that any of our drug candidates will be approved for sale in
any market, that any approvals which have been obtained will continue to
remain valid and effective in the future, or that the sales of products
marketed or otherwise commercialized by HUTCHMED and/or its collaboration
partners (collectively, "HUTCHMED's Products") will achieve any particular
revenue or net income levels. In particular, management's expectations could
be affected by, among other things: unexpected regulatory actions or delays or
government regulation generally; the uncertainties inherent in research and
development, including the inability to meet our key study assumptions
regarding enrollment rates, timing and availability of subjects meeting a
study's inclusion and exclusion criteria and funding requirements, changes to
clinical protocols, unexpected adverse events or safety, quality or
manufacturing issues; the delay or inability of a drug candidate to meet the
primary or secondary endpoint of a study; the delay or inability of a drug
candidate to obtain regulatory approval in different jurisdictions or the
utilization, market acceptance and commercial success of HUTCHMED's Products
after obtaining regulatory approval; discovery, development and/or
commercialization of competing products and drug candidates that may be
superior to, or more cost effective than, HUTCHMED's Products and drug
candidates; the impact of studies (whether conducted by HUTCHMED or others and
whether mandated or voluntary) or recommendations and guidelines from
governmental authorities and other third parties on the commercial success of
HUTCHMED's Products and drug candidates in development; the ability of
HUTCHMED to manufacture and manage supply chains, including various third
party services, for multiple products and drug candidates; the availability
and extent of reimbursement of HUTCHMED's Products from third-party payers,
including private payer healthcare and insurance programs and government
insurance programs; the costs of developing, producing and selling HUTCHMED's
Products; the ability to obtain additional funding when needed; the ability to
obtain and maintain protection of intellectual property for HUTCHMED's
Products and drug candidates; the ability of HUTCHMED to meet any of its
financial projections or guidance and changes to the assumptions underlying
those projections or guidance; the successful disposition of its non-core
business; global trends toward health care cost containment, including ongoing
pricing pressures; uncertainties regarding actual or potential legal
proceedings, including, among others, actual or potential product liability
litigation, litigation and investigations regarding sales and marketing
practices, intellectual property disputes, and government investigations
generally; and general economic and industry conditions, including
uncertainties regarding the effects of the persistently weak economic and
financial environment in many countries, uncertainties regarding future global
exchange rates, uncertainties in global interest rates, and geopolitical
relations, sanctions and tariffs. For further discussion of these and other
risks, see HUTCHMED's filings with the US Securities and Exchange Commission,
on AIM and on HKEX. HUTCHMED is providing the information in this announcement
as of this date and does not undertake any obligation to update any
forward-looking statements as a result of new information, future events or
otherwise.

 

In addition, this announcement contains statistical data and estimates that
HUTCHMED obtained from industry publications and reports generated by
third-party market research firms. Although HUTCHMED believes that the
publications, reports and surveys are reliable, HUTCHMED has not independently
verified the data and cannot guarantee the accuracy or completeness of such
data. You are cautioned not to give undue weight to this data. Such data
involves risks and uncertainties and are subject to change based on various
factors, including those discussed above.

 
Inside Information

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in
the European Union (Withdrawal) Act 2018).

 
Medical Information

 

This announcement contains information about products that may not be
available in all countries, or may be available under different trademarks,
for different indications, in different dosages, or in different strengths.
Nothing contained herein should be considered a solicitation, promotion or
advertisement for any prescription drugs including the ones under development.

 

Ends

 

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http://www.rns-pdf.londonstockexchange.com/rns/4082U_1-2025-8-7.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4082U_1-2025-8-7.pdf)

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.   END  IR UPUWPRUPAURM