Delivering commercially and strategically during FY22

Lighthouse | 2 March 2023

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  • FY22 was a year of China commercial execution and China and global pipeline progress. The November strategic update laid the groundwork for HUTCHMED to become a self-sustaining profitable business. Late-stage portfolio and registration study prioritisation, and a global partnering approach should drive near-term value and help achieve breakeven in FY25. Momentum in China oncology revenues plus partial recognition of the $400m upfront from the Takeda deal for global ex-China fruquintinib rights (January 2023 Lighthouse) underpin FY23 revenue guidance of $450-550m.
  • Consolidated FY22 revenues of $426m (+20%, FY21: $356m) include Oncology/Immunology sales of $163.8m (+37%, FY21: $119.6m), in-line with FY22 guidance of $160-190m, and Other Ventures of $262.6m (+11%, $236.5m). Cost of Sales rose to $311.1m (from $258.2m) and SG&A to $136.1m (from $127.1m). 29% growth in R&D spend ($386.9m vs $299.1m) reflects the 15+ registration trials with six oncology assets. Other Items were lower at $46.9m (from $133.7m), due to a $82.9m one-off divestment gain in FY21. Net Loss was $360.8m (FY21: $194.6m). End-FY22 cash of $631m (end-FY21: $1bn) does not include the post-period Takeda upfront.
  • The in-house China commercial infrastructure of 900+ salespeople addressing >33k oncology physicians and c3k hospitals performed strongly in FY22 despite a challenging COVID backdrop in China. The three lead assets – Elunate (fruquintinib), Sulanda (surufatinib), Orpathys (savolitinib, sold by AstraZeneca with HUTCHMED eligible for a 30% royalty on China sales) – delivered 70% in-market sales growth (FY22: $167m vs FY21: $98.5m), with consolidated revenues up 63% ($124.6m vs $76.4m).
  • Several China NDA filings are planned in 2023, with a second indication for fruquintinib (2L gastric cancer) and first filings for the haem-oncology assets (ie sovleplenib, a Syk inhibitor in 2L ITP or immune thrombocytopenia, and PI3Kδ inhibitor amdizalisib for 3L follicular lymphoma). Outside of China, these second wave haem-oncology assets are candidates for out-licensing.
  • Globally, HUTCHMED now has two multinational partners: AstraZeneca for savolitinib and Takeda for fruquintinib. The near-term spotlight is on the latter after positive FRESCO-2 data in ≥3L CRC (September 2022 Update) and initiation of a rolling NDA with FDA which should complete in H123, followed by EU and Japan regulatory filings. Savolitinib meanwhile is completing multiple pivotal trials with potential for first filing(s) in 2024.

Trinity Delta view: HUTCHMED’s strategy to accelerate its path to profitability and bring first-in-class and best-in-class targeted therapies to the market globally has been boosted by the Takeda fruquintinib partnership. This broadens fruquintinib’s development and commercial potential and gives HUTCHMED greater bandwidth to further maximise the commercial traction underway in China, and to progress its late-stage pipeline. Our last published HUTCHMED valuation was $5.51bn ($31.89 per ADS), £4.6bn and HK$43.1bn (531p or HK$49.83 per share), which was pre the Takeda deal and does not reflect FY22 results.


2 March 2023

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Company CodesHCM
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Company description

HUTCHMED is a Hong Kong headquartered biopharma focused on discovering, developing and commercializing innovative targeted therapeutics and immunotherapies to treat cancer and autoimmune diseases. It has a diverse pipeline of first-in-class/best-in-class selective oral TKIs in development for the China and global markets.


Lala Gregorek
+44 (0) 20 3637 5043

Philippa Gardner
+44 (0) 20 3637 5042


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