Core Viewpoint - The sudden drop in the stock price of Hutchison China MediTech (HCM) by over 16% is attributed to its mid-year performance report, which, despite not being below expectations, revealed concerning trends in revenue and R&D spending [1][2]. Financial Performance - HCM reported a total revenue of $278 million for the first half of 2025, a year-on-year decrease of 9.16% [2]. - Net profit surged to $455 million, a significant increase of 1663.32%, primarily due to the sale of a 50% stake in Shanghai Hutchison Pharmaceuticals for 4.5 billion RMB [2]. - R&D expenditures decreased by 24.4%, with investments outside China halved, raising concerns about the company's commitment to innovation [2]. - Sales expenses were reduced by 49.3% to $13.9 million [2]. Market Reaction - Following the earnings report, HCM's stock opened down over 9% and continued to decline, closing at HKD 23.38 per share, resulting in a market capitalization loss of over HKD 4 billion [1][2]. Product Performance - HCM's oncology products generated a combined revenue of $271.5 million in 2024, reflecting a 65% year-on-year growth, with total market sales increasing by 134% to $501 million [3]. - The company's flagship product, Fokutani, is projected to have sales of approximately $120 million in 2023, with significant international interest from Takeda Pharmaceutical [2]. Strategic Direction - HCM has been divesting from its traditional Chinese medicine assets, including the complete sale of its stake in Baiyunshan Hutchison and a recent announcement to sell stakes in Shanghai Hutchison Pharmaceuticals [5]. - The company aims to focus on its core innovative drug business and product pipeline development, using proceeds from asset sales to fund these initiatives [5].
李嘉诚突发！旗下和黄医药大跌16%，单日市值蒸发超过40亿港元，不断剥离内地医药资产，年初以45亿元出售上海和黄