Investment Perspective

HUTCHMED has established a solid track record of delivery on its strategic objectives. A key milestone is the prospect of sustainable profitability, as continued commercial execution and progress from the most advanced in-house pipeline assets sees the company transition from a China-based R&D-focused biopharma to a fully integrated commercial business. Four products are now available in China, with the first HUTCHMED product launched in the US, Europe, and Japan by partner Takeda. Key pipeline programmes are progressing with multiple near-term clinical and regulatory catalysts for new indications, new markets, and new products. The oncology opportunities remain compelling globally, and while its first-in-class/best-in-class small molecule TKI (tyrosine kinase inhibitor) drugs are gaining traction, HUTCHMED is diversifying into biologics with its ATTC (antibody-targeted therapy conjugate) platform. We continue to view HUTCHMED as a unique biopharma opportunity with a broad pipeline of differentiated assets, global ambitions supported by large pharma partners, proven commercial execution in China yielding a growing top line, all balanced with shrewd investment. Our HUTCHMED valuation is $5.80bn/£4.54bn/HK$45.27bn, or $33.27/ADS and 520p/HK$51.90 per share.