HUTCHMED

H126: China recovery and Fruzaqla drive sales growth

Lighthouse | 31 July 2026

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  • H126 results revealed the positive impacts from the rebound in China in-market sales (Elunate and Sulanda sales and consolidated revenues up >40%, >30% CER) and of Fruzaqla’s geographic expansion with approvals now in 41 countries (ex-US sales of $69m, +70%; global in-market sales of $185m, +14%). Overall, in-market product sales grew +17% CER to $280m (H125: $234m). H126 Oncology/Immunology consolidated revenue included product-related revenue of $121m (H125: $99m), and upfront, milestone, R&D services, and other revenue of $41m (H125: $44m). Total income was flat at $278m, including Other Ventures income of $116m (H125: $134m).
  • Higher R&D spend of $79m (H125: $72m) reflected initiation of global Phase I studies for two ATTC assets and ongoing discovery investment, with SG&A costs of $46m (H125: $42m) driven by Oncology/Immunology commercial operations. The solid balance sheet supports accelerated development of the ATTC global pipeline and productivity improvements in the commercial organisation, while maintaining firepower for future in-licensing and/or M&A. Despite increased investment, profitability was maintained with H126 net income of $16m (H125: $455m, including $416m in SHPL net divestment proceeds). H126 cash was $1.37bn vs $1.37bn at end-December 2025.
  • HUTCHMED reiterated FY26 Oncology/Immunology consolidated revenue guidance of $330m-$450m. The lower end of guidance rests on continued organic growth in China, supported by potential approvals of follow-on indications/new products, and modest Fruzaqla growth ex-China. Successful business development deals on the pipeline and/or ATTC assets and trigger of the next Fruzaqla sales milestone from Takeda represent upside potential.
  • The China pipeline continues to progress with sovleplenib NDA acceptance in 2L wAIHA and NDA resubmission in 2L primary ITP, plus several NMPA approvals (savolitinib in 3L MET-amplified gastric cancer; fruquintinib plus sintilimab in 2L RCC which triggered a $18.1m milestone from Eli Lilly). The China Phase III trial of HMPL-760 (BTK inhibitor) plus rituximab in 2L DLBCL is underway, and a third ATTC candidate is set to enter the clinic in H226. A key catalyst for HUTCHMED remains savolitinib pivotal trial read outs in NSCLC (SAFFRON global; SANOVO China), anticipated in late-2026.

Trinity Delta view: The positive 2026 outlook with Oncology/Immunology revenue guidance of $330m-$450m is supported by the recovery in China growth momentum, ongoing geographic expansion of Fruzaqla ex-US, and potential partnering opportunities. Continued commercial and R&D execution is key to ensuring sustainable profitability. Medium-term growth prospects should be boosted by potential approval of second global product, savolitinib, assuming positive pivotal data read outs in H226, and M&A and/or in-licensing. Business development, particularly with respect to the ATTC platform, would drive longer-term growth. Large pharma interest in ATTCs, if converted into deal(s) would give external validation and expedite development in a broad range of solid tumours with sizeable market potential. Our most recent HUTCHMED valuation was $5.80bn/£4.54bn/ HK$45.27bn, or $33.27/ADS and 520p/HK$51.90 per share.

Lighthouse

31 July 2026

Price (US ADS)
(UK share)
(SEHK share)
$10.77
167.5p
HK$17.71
Market Cap
 
$1.87bn
£1.47bn
HK$15.39bn
ExchangesNASDAQ
AIM London
SEHK
SectorHealthcare
Company CodesHCM
HCM.L
0013.HK
Corporate clientYes

Company description

HUTCHMED is a Hong Kong headquartered biopharma focused on discovering, developing and commercialising innovative targeted therapeutics and immunotherapies to treat cancer and immunological diseases for the China and global markets.

Analysts

Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043

Franc Gregori
fgregori@trinitydelta.org
+44 (0) 20 3637 5041

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