HUTCHMED(HCM) - 2024 Q4 - Annual Report

Financial Performance - Total consolidated revenue for 2024 was $630.2 million, down from$ 838.0 million in 2023[10]. - Revenue for the year ended December 31, 2024 was $630.2 million compared to$ 838.0 million in 2023, reflecting a decrease of approximately 25%[31]. - Net income for 2024 was $37.7 million, with a cash balance of$ 836.1 million as of December 31, 2024[6]. - Net income attributable to HUTCHMED for 2024 was $37.7 million compared to$ 100.8 million in 2023, representing a decline of about 63%[33]. - Cash, cash equivalents, and short-term investments were $836.1 million as of December 31, 2024, down from$ 886.3 million as of December 31, 2023[34]. - Consolidated revenue from Other Ventures decreased by 14% to $266.8 million in 2024, primarily due to lower COVID-related prescription drug distribution sales[148]. - Revenue from the distribution business decreased by 11% to$ 262.8 million, attributed to lower COVID-related prescription drug distribution sales[149]. - Dividends received from SHPL in 2024 amounted to $34.9 million, down from$ 42.3 million in 2023, with total dividends received since inception exceeding $360 million[154]. Oncology Product Sales - Oncology product in-market sales increased by 134% to$ 501.0 million in 2024, compared to $213.6 million in 2023[8]. - Consolidated revenue from oncology products rose by 65% to$ 271.5 million in 2024, up from $164.2 million in 2023[8]. - FRUZAQLA's ex-China in-market sales reached$ 290.6 million in 2024, a significant increase from $15.1 million in 2023[11]. - ELUNATE's in-market sales in China grew by 7% to$ 115.0 million in 2024, maintaining its market share in metastatic colorectal cancer[12]. - In-market sales of HUTCHMED's novel oncology products grew 134% to $501.0 million in 2024, primarily driven by the launch of FRUZAQLA[54]. - Fruquintinib achieved in-market ex-China sales of$ 290.6 million in 2024, triggering a $20 million milestone payment from Takeda for reaching$ 200 million in annual sales[57]. - ELUNATE in China achieved in-market sales of $115.0 million in 2024, up 7% compared to 2023[59]. - ORPATHYS in-market sales decreased 2% to$ 45.5 million in 2024, with royalties and manufacturing revenue consolidating to $24.5 million[63]. - Surufatinib (SULANDA) in-market sales increased by 12% to$ 49.0 million in 2024, maintaining a 27% prescription share in NET treatment[65]. Research and Development - The company plans to expedite the development of its new ATTC platform, targeting a wide range of oncology indications[7]. - R&D expenses were reduced by 30% to $212.1 million, primarily due to restructuring efforts outside of China[35]. - The SAVANNAH global Phase II study showed a high confirmed overall response rate (ORR) of 90.5% for EGFRm NSCLC patients treated with savolitinib and TAGRISSO, compared to 60.9% for TAGRISSO monotherapy[82]. - The SANOVO China Phase III study continues to enroll patients, focusing on treatment-naïve patients with EGFRm and MET overexpression[82]. - Approximately 100 investigator-initiated trials for fruquintinib and surufatinib are ongoing in various solid tumor settings in China[104][110]. Regulatory Approvals - Savolitinib's NDA in China was accepted and granted priority review following positive interim analysis results for EGFRm NSCLC patients[6]. - Fruquintinib approved in the EU for CRC in June 2024, followed by first European reimbursement in Spain in December 2024, triggering a$ 10.0 million milestone from Takeda[16]. - Savolitinib NDA accepted by the NMPA with Priority Review status for 2L EGFRm NSCLC patients in December 2024, triggering a milestone from AstraZeneca[16]. - Fruquintinib sNDA approved by the NMPA for 1L and 2L METex14 NSCLC in January 2025, converting from conditional to full approval[16]. - Tazemetostat's NDA for R/R follicular lymphoma was accepted for review by the NMPA in July 2024, with priority review status granted[68]. - The NDA for sovleplenib in primary ITP was accepted for priority review by the NMPA in January 2024[114]. - The NDA for tazemetostat in China was accepted with priority review status in July 2024[121]. Strategic Transactions - The company agreed to a partial disposal of its equity in the SHPL joint venture for $608 million[6]. - HUTCHMED entered into share purchase agreements to divest its 45.0% equity interest in SHPL for approximately$ 608 million in cash, retaining a 5.0% equity interest[26]. - The estimated gain on disposal for HUTCHMED is approximately $477 million before taxation, considering the carrying value of the shares sold[153]. - HUTCHMED received shares representing approximately 7.5% of Inmagene in July 2024 as part of a strategic partnership to develop novel drug candidates[137]. Cost Management - Selling and administrative expenses decreased to$ 112.9 million, reflecting tighter controls over administrative and selling costs[35]. - Staff costs for the year ended December 31, 2024, totaled $190.9 million, a decrease from$ 213.7 million in 2023[196]. Market Conditions - The Consumer Price Index in China increased by 0.1% in 2024, indicating low inflation impact on the company's operations[190].