HUTCHMED Achieves Profitability with Strong Oncology Portfolio Growth
HUTCHMED (China) Limited (HKEX:13; Nasdaq/AIM:HCM) has reported its financial results for the year ended December 31, 2024, marking a significant milestone as the company achieved profitability ahead of schedule. The company's oncology products revenue grew by 65% to $271.5 million, driving a net income of $37.7 million for the year.
Global Commercial Success Drives Financial Performance
HUTCHMED's commercial portfolio demonstrated strong performance across multiple products, with total oncology products in-market sales increasing by 134% to $501.0 million. This growth was primarily driven by the successful global commercialization of FRUZAQLA® (fruquintinib) outside China by partner Takeda.
FRUZAQLA® generated ex-China in-market sales of $290.6 million in 2024, its first full year of availability, with rapid patient uptake in the US and successful launches in the EU and Japan. This performance triggered a sales milestone payment from Takeda when sales exceeded $200 million.
"The successful commercialization of FRUZAQLA® outside of China by our partner Takeda and the resulting milestones achieved during the year were pivotal in helping HUTCHMED reach its profitability goals," said Dr. Dan Eldar, Non-executive Chairman of HUTCHMED.
In China, ELUNATE® (fruquintinib) maintained its leading market share position in metastatic colorectal cancer with in-market sales increasing 7% to $115.0 million, despite competitive pressure. SULANDA® (surufatinib) sales grew 12% to $49.0 million as brand awareness increased among physicians.
Pipeline Progress and Regulatory Achievements
HUTCHMED made significant progress across its pipeline in 2024, with several key regulatory and clinical milestones:
Savolitinib (ORPATHYS®):
- Primary endpoint met in SACHI China Phase III interim analysis for EGFR-mutated NSCLC with MET amplification, leading to NDA filing with priority review status
- Positive SAVANNAH global pivotal Phase II results for savolitinib in combination with TAGRISSO® for EGFR-mutated NSCLC patients with MET overexpression or amplification
- Full approval in China for first-line and second-line MET exon 14 skipping alteration NSCLC in January 2025
Fruquintinib:
- Positive FRUSICA-2 China Phase III results for fruquintinib with sintilimab in second-line renal cell carcinoma
- Approval in China for a second indication in endometrial cancer with pMMR status
- Multiple international approvals including in the EU, Japan, Canada, UK, Australia, and other markets
Sovleplenib:
- ESLIM-01 China Phase III data presented at ASH and EHA, showing strong and durable response rates for immune thrombocytopenia (ITP) patients
- NDA under review by China NMPA with supplementary data submitted
Dr. Weiguo Su, Chief Executive Officer and Chief Scientific Officer of HUTCHMED, commented: "We've had a highly successful year, delivering against our strategy, in the clinic and commercially with our transformational medicines. This has culminated in HUTCHMED reaching profitability, which has been a key focus of ours."
New ATTC Platform and Strategic Initiatives
A significant development for HUTCHMED's future growth is the introduction of its Antibody-Targeted Therapy Conjugate (ATTC) platform, which aims to develop a new generation of drug candidates potentially more selective and tolerable than previous antibody-drug conjugates.
"Our pioneering ATTC platform turns a new page in HUTCHMED's innovative drug development story, establishing a new frontier in antibody-drug conjugates," said Dr. Su. "This new portfolio of molecules is well placed to target a wide range of oncology indications with sizable market potential, including in first-line combinations."
To support this strategic focus, HUTCHMED announced the partial disposal of its equity in Shanghai Hutchison Pharmaceuticals Limited (SHPL) joint venture for $608 million. This transaction will provide additional resources to accelerate the development of the ATTC platform while maintaining the company's financial self-reliance.
Financial Highlights and Outlook
HUTCHMED ended 2024 with a strong cash position of $836.1 million, supporting its continued investment in R&D and commercial activities. The company's total consolidated revenue was $630.2 million, including Other Ventures revenue of $266.8 million.
For 2025, HUTCHMED provided guidance for Oncology/Immunology consolidated revenue of $350 million to $450 million, reflecting confidence in continued commercial growth.
Key financial metrics for 2024 include:
- Oncology product consolidated revenue: $271.5 million (65% increase)
- Total Oncology/Immunology consolidated revenue: $363.4 million
- Net income attributable to HUTCHMED: $37.7 million ($0.04 per ordinary share / $0.22 per ADS)
- Cash, cash equivalents and short-term investments: $836.1 million
Sustainability Initiatives
HUTCHMED continued to strengthen its sustainability efforts in 2024, resulting in improved ESG ratings from multiple agencies. The company conducted comprehensive assessments on climate risks and biodiversity impact, while also implementing supplier ESG assessments to understand the sustainability maturity of its supplier base.
These efforts were recognized with MSCI ESG upgrading HUTCHMED's rating from BBB to A, and ISS ESG upgrading from C to C+. The company also achieved an A- rating and a top quartile score in the Hang Seng Corporate Sustainability Index Series.
Looking Ahead
With a profitable business model now established, HUTCHMED is well-positioned to continue its global expansion while advancing its innovative pipeline. The company's focus on the ATTC platform represents a new frontier in its development strategy, while its commercial medicines continue to reach more patients globally.
"We expect to continue our global growth with further sales in the US and in other regions of the world, while continuing to develop our pipeline in new and promising directions," said Dr. Eldar. "The long-term interests of our shareholders and benefits to patients around the world will always remain our top priorities."
