HONG KONG and SHANGHAI and FLORHAM PARK, N.J., June 26, 2024 (GLOBE NEWSWIRE) -- HUTCHMED (China) Limited ("HUTCHMED") (Nasdaq/AIM: HCM; SEHK:13) will be announcing its interim results for the six months ended June 30, 2024 on Wednesday, July 31, 2024 at 7:00 am Eastern Daylight Time (EDT) / 12:00 noon British Summer Time (BST) / 7:00 pm Hong Kong Time (HKT). Analysts and investors are invited to join a conference call and audio webcast presentation with Q&A, conducted by HUTCHMED management. The English co ...

Summary of the Conference Call Company Overview - The company discussed is 和黄医药 (Hua Hong Pharmaceutical), focusing on its financial performance and product pipeline. Key Points Financial Performance - The company reported total revenue of $840 million for the previous year, with a profit of $100 million, primarily due to a one-time gain from licensing rights to 武田 (Takeda) amounting to $400 million [1][2] - The company has a cash reserve of $890 million, sufficient to support R&D expenditures for the next few years [2] - The core product revenue was $164 million, with total revenue from products and milestones reaching $529 million, influenced by the one-time payment [2] Product Pipeline and Growth Projections - The company projects total revenue from oncology products to be between $300 million and $400 million this year, with product revenue expected to grow by 30% to 50% [3] - The product 富奎 (Fuqu) has received approvals in the US and Europe, with sales exceeding $50 million in Q1, indicating strong market acceptance [5] - The company anticipates that sales for 富奎 will exceed $140 million in the current fiscal year, which runs from April 2024 to March 2025 [6] Market Dynamics - The pricing for 富奎 in Europe is expected to be lower than in the US, where it is priced at approximately $25,000 per month, significantly higher than domestic prices [4] - The company has a mature sales team in China, with over 900 personnel, and plans to establish a new team focused on blood diseases [7] Product Specifics - 富奎 has captured nearly 50% market share in its category since its launch in late 2018, demonstrating stable growth [8] - The second product, 索凡 (Sofan), targets neuroendocrine tumors and has shown promising sales and clinical recognition [9][10] - The company is expanding its pipeline with new indications, including pancreatic cancer and various blood disorders [12][24] Regulatory and Clinical Developments - The company is in the process of submitting applications for new indications, including second-line gastric cancer and endometrial cancer, with expected feedback in Q3 [18][20] - The company has initiated clinical trials for a new product targeting immune thrombocytopenic purpura (ITP), with promising early data [32][34] Competitive Landscape - The company faces competition in the oncology space, particularly for its product 塞沃 (Saiwo), which is positioned against other therapies targeting similar indications [55] - The differentiation of 塞沃 lies in its targeted approach using specific biomarkers for patient selection, which is expected to provide a competitive edge [55][56] Future Outlook - The company is optimistic about its growth trajectory, with plans to expand its product offerings and market presence both domestically and internationally [19][20] - The anticipated approval of 富奎 in Japan is expected to significantly enhance its market potential, given the high incidence of colorectal cancer in the region [50][52] Additional Important Information - The company is preparing for the launch of its new product, 索乐匹尼布 (Solen), which targets a novel pathway and is expected to fill a gap in the market for blood disorders [30][31] - The company is also exploring larger autoimmune indications for its SYK inhibitor, indicating a strategic move to broaden its therapeutic scope [49] This summary encapsulates the key insights from the conference call, highlighting the company's financial health, product pipeline, market strategies, and future growth potential.

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of HKD 41.16 per share, compared to the current price of HKD 28.20 [4]. Core Insights - The company announced that its partner Takeda received EU approval for FRUZAQLA® (furmonertinib), which is a significant milestone for the treatment of adult patients with metastatic colorectal cancer who have progressed after standard therapies [2]. - The international expansion of furmonertinib is accelerating, with approvals in the US and Europe, and a submission for listing in Japan [2]. - The commercialization of furmonertinib in China is progressing well, with over 80,000 patients treated as of mid-2023, and additional indications for gastric and endometrial cancers have also been submitted for approval [2]. - The company's R&D and commercialization capabilities have been validated, and it is expected to turn profitable by 2025, with projected net profits of -116 million, 1 million, and 116 million USD for 2024, 2025, and 2026 respectively [2][3]. Financial Summary - The company's main revenue is projected to grow from USD 426 million in 2022 to USD 1,099 million by 2026, with a notable growth rate of 96.5% in 2023 [3]. - The EBITDA is expected to improve from -399 million USD in 2022 to 65 million USD in 2026, indicating a recovery in profitability [3]. - The net profit attributable to shareholders is forecasted to shift from -361 million USD in 2022 to 116 million USD in 2026, reflecting a significant turnaround [3]. - The company's earnings per share (EPS) is projected to improve from -0.42 in 2022 to 0.13 in 2026 [3].

Summary of Conference Call Company and Industry - The discussion involves a subsidiary named Guokong Hehuang, which is a joint venture established with Sinopharm Holdings for distribution purposes [1]. Core Points and Arguments - The subsidiary Guokong Hehuang generated revenue of slightly over 300 million USD last year [1]. - The total revenue for the company, including the subsidiary, amounted to 840 million USD [1]. Other Important Content - The subsidiary is consolidated into the company's financial statements due to its controlling interest [1].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 55.78 [5][7]. Core Insights - The approval of FRUZAQLA (furmonertinib) for the treatment of previously treated metastatic colorectal cancer patients marks a significant milestone for the company, being the first innovative targeted therapy approved in the EU for this indication in over a decade [2][3]. - The unmet medical need in colorectal cancer is substantial, with over 1.9 million new cases globally in 2022, highlighting the potential market for FRUZAQLA [2]. - The company has seen strong sales performance, with FRUZAQLA generating USD 15.1 million in the U.S. market within its first month of launch, and a total of USD 108 million in sales for ELUNATE (the name under which furmonertinib is marketed in China) in 2023, reflecting a 22% year-over-year growth [2][7]. Financial Projections - The company is projected to achieve revenues of USD 890 million, USD 1.255 billion, and USD 1.575 billion for the years 2024, 2025, and 2026 respectively, with corresponding net profits of USD 134 million, USD 237 million, and USD 351 million [7]. - The earnings per share (EPS) are expected to be USD 0.15, USD 0.27, and USD 0.40 for the years 2024, 2025, and 2026, with price-to-earnings (P/E) ratios of 24, 13, and 9 respectively [7].

HONG KONG and SHANGHAI and FLORHAM PARK, N.J., June 24, 2024 (GLOBE NEWSWIRE) -- HUTCHMED (China) Limited ("HUTCHMED") (Nasdaq/AIM:HCM; HKEX:13) today announces that it will host a R&D update in Shanghai, China, and via webcast on Tuesday, July 9, 2024. During the event, the senior management team will share insights into the Company's R&D strategy and vision. Additionally, the team will provide updates on certain programs within HUTCHMED's extensive and innovative pipeline. This will include updates on the ...

HONG KONG and SHANGHAI and FLORHAM PARK, N.J., June 24, 2024 (GLOBE NEWSWIRE) -- HUTCHMED (China) Limited (“HUTCHMED”) (Nasdaq/AIM:HCM; HKEX:13) today announces that it will host a R&D update in Shanghai, China, and via webcast on Tuesday, July 9, 2024. During the event, the senior management team will share insights into the Company’s R&D strategy and vision. Additionally, the team will provide updates on certain programs within HUTCHMED’s extensive and innovative pipeline. This will include updates on the ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The European Commission has officially approved Fruzaqla (furazolidone) for marketing, marking a significant milestone for the company as it accelerates into a global revenue phase [2][4] - The approval is based on data from the FRESCO-2 international phase III trial, which demonstrated a median progression-free survival of 3.7 months for the furazolidone group compared to 1.8 months for the placebo group, and a median overall survival of 7.4 months versus 4.8 months for the placebo group [3] - The company maintains its profit forecast for 2024-2026, expecting net profits of -648 million, 18 million, and 1.131 billion yuan respectively, with price-to-sales ratios of 4.82, 3.63, and 2.92 [2] Financial Summary - The company reported a revenue of 5.935 billion yuan in 2023, with a year-on-year growth of 99.9%, but expects a decline of 21.6% in 2024 [6] - The net profit for 2023 was 715 million yuan, a significant recovery from a loss of 2.561 billion yuan in 2022, but is projected to incur a loss of 684 million yuan in 2024 [6] - The gross margin improved to 54.0% in 2023, with expectations of 45.3% in 2024 and further growth to 59.0% by 2026 [6] Pipeline and Future Catalysts - The company has several important catalysts expected in the second half of 2024, including the NDA submission for savolitinib for MET mutation NSCLC and the anticipated approval of solriamfetol for immune thrombocytopenia [5] - Furazolidone is expected to be approved in Japan by October 2024, with strong sales growth anticipated in overseas markets, projecting over 140 million USD in sales for 2024 [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3][4] Core Insights - The company has received EU approval for FRUZAQLA® (furmonertinib), marking it as the first innovative targeted therapy approved for metastatic colorectal cancer in over a decade in the EU [3] - Furmonertinib shows significant efficacy advantages, with strong sales momentum in the US, generating over $50 million in sales in Q1 2024 alone [3][4] - The company has a robust pipeline with multiple upcoming catalysts, including potential approvals for various indications in 2024 [4] Summary by Sections Company Events - On June 22, the company announced that Takeda received EU approval for FRUZAQLA® for treating adult patients with metastatic colorectal cancer who have progressed after standard therapies [3] - Furmonertinib has a nearly 50% market share in China since its approval in 2018, and it is expected to gain further traction in international markets [3] Future Catalysts - The company anticipates continued strong sales of furmonertinib, with a Japanese market application submitted in September 2023 and expected approval in H2 2024 [4] - Other products in the pipeline include potential approvals for various cancer treatments, with significant revenue growth expected from these innovations [4] Financial Forecast and Valuation - The company projects total revenue for its oncology/immunology business to be between $300 million to $400 million in 2024, driven by existing product sales and royalties [4] - Revenue estimates for 2024-2026 are $705 million, $912 million, and $1.185 billion respectively, with a calculated equity value of HKD 40.9 billion based on DCF analysis [4]

— Approval for previously treated metastatic colorectal cancer based on results from positive, global, Phase III FRESCO-2 Trial — — FRUZAQLA® (fruquintinib) is the first novel targeted therapy in the EU for metastatic colorectal cancer regardless of biomarker status in over a decade — HONG KONG, SHANGHAI and FLORHAM PARK, N.J., June 21, 2024 (GLOBE NEWSWIRE) -- HUTCHMED (China) Limited ("HUTCHMED") (Nasdaq/AIM:HCM; HKEX:13) today announces that its partner Takeda (NYSE:TAK) has received notification from th ...