Investment Rating - The report maintains a "BUY" rating for Hutchmed, with a target price raised from HK$34.31 to HK$35.61, reflecting a potential upside of 20.9% from the current price of HK$29.45 [2][4]. Core Insights - Hutchmed's oncology/immunology product revenue reached US$128 million in the first half of 2024, representing a year-over-year increase of 59.6%. This includes US$43 million from fruquintinib's sales outside China [2]. - The consolidated revenue from oncology/immunology, including R&D services and collaboration revenue with Takeda, reached US$169 million in 1H24, which is 48% of the midpoint of the FY24 guidance range of US$300-400 million [2]. - Fruquintinib's sales in the US market grew by 53% quarter-over-quarter to JPY11.9 billion (approximately US$80 million) in 2Q24, up from JPY7.8 billion (approximately US$52 million) in 1Q24, indicating strong demand [2]. - In China, the in-market sales of fruquintinib, savolitinib, and surufatinib increased by 8%, 18%, and 12% year-over-year, respectively, with revenues of US$46 million, US$13 million, and US$25 million [2]. - Hutchmed's R&D expenditures were US$95 million in 1H24, down 34% year-over-year, and the company recorded a net income of US$26 million in the same period [2]. Revenue and Financial Performance - The revenue forecast for FY24 is US$640 million, with expected growth to US$785 million in FY25 and US$1,055 million in FY26 [13]. - The gross profit for FY24 is projected at US$324 million, increasing to US$417 million in FY25 and US$612 million in FY26, with gross margins improving from 50.53% in FY24 to 57.96% in FY26 [12][13]. - Operating profit is expected to turn positive in FY25, reaching US$36 million, and further increasing to US$195 million in FY26 [12][13]. Product Development and Market Expansion - Fruquintinib is expected to receive a CDE decision for the supplemental NDA for second-line gastric cancer in 3Q24, with additional indications for endometrial cancer and renal cancer anticipated by the end of 2024 [2]. - Savolitinib is positioned to become Hutchmed's second product for global commercialization, with an NDA filing expected by the end of 2024, contingent on positive trial outcomes [2]. - Sovleplenib, a potential best-in-class Syk inhibitor, is anticipated to penetrate the autoimmune disease market following its NDA submission in January 2024 [2].
和黄医药：Fruquintinib’s overseas sales beat