HUTCHMED Releases 2024 Interim Results and Business Updates

HUTCHMED (China) Limited has announced its financial results for the first half of 2024, which show strong growth in oncology product revenue and a solid cash balance of $802.5 million as of June 30, 2024. The company reported a net income of $25.8 million for this period. Driven by a 59% growth in oncology product revenue, HUTCHMED reiterates its full-year 2024 guidance for consolidated revenue in the Oncology/Immunology segment to be between $300 million and $400 million.

FRUZAQLA®, which was launched in the US in November 2023, generated $130.5 million in sales in the first half of 2024, indicating strong market demand. The company's revenue from total oncology products increased by 140% to $243.3 million, supported by robust sales of ELUNATE® and SULANDA® within China and ORPATHYS® globally.

The company is preparing for the European launch of FRUZAQLA®, following the approval by the European Commission in June 2024. HUTCHMED's partner, Takeda, is leading these efforts, with filings in over a dozen jurisdictions. Additionally, HUTCHMED is gearing up for the China launch of sovleplenib for the treatment of idiopathic thrombocytopenic purpura (ITP), after its New Drug Application (NDA) was accepted and granted Priority Review status in January 2024.

The company is also making strides in its late-stage clinical development activities. Key trials include the global Phase II SAVANNAH study for savolitinib in non-small cell lung cancer (NSCLC) patients, which may lead to a potential US NDA filing by year-end. Furthermore, NDAs have been accepted to expand the use of key drugs like ORPATHYS® and ELUNATE®, and for TAZVERIK® in China, targeting various cancers including METex14 NSCLC and follicular lymphoma.

HUTCHMED’s Chief Executive Officer, Dr. Weiguo Su, highlighted the company’s achievements in maintaining clinical and regulatory momentum while driving commercial success. The company also initiated three key late-stage studies and continues to advance over a dozen more, which could support future drug approvals.

A significant portion of HUTCHMED’s revenue derives from its collaboration with Takeda. During the first half of 2024, Takeda upfront, milestone, and R&D services revenue amounted to $33.8 million, compared to $269.1 million in the same period last year. Total revenue for HUTCHMED was $305.7 million in the first six months of 2024, a decrease from $532.9 million in the same period in 2023.

The company’s regulatory updates included the acceptance of a supplementary New Drug Application (sNDA) by the China National Medical Products Administration (NMPA) for savolitinib for first- and second-line METex14 NSCLC, and the approval of fruquintinib in Hong Kong for third-line colorectal cancer.

In terms of clinical development, HUTCHMED presented results from several key studies, including the FRUSICA-1 and FRESCO-2 trials for fruquintinib. The results demonstrated significant improvements in efficacy and quality of life for patients with various types of cancer, further supporting the potential of fruquintinib as a treatment option.

HUTCHMED’s other ventures, primarily its prescription drug distribution operation in China, saw a decrease in revenue by 21% to $137.0 million, attributed to lower COVID-related sales. However, the company still managed to maintain strong cost control, reducing its overall expenses.

HUTCHMED's strategic focus remains on global expansion and advancing its R&D pipeline. The company continues to explore opportunities to monetize its SHPL joint venture and is committed to embedding sustainability into its operations. HUTCHMED's financial guidance for the full year 2024 remains unchanged, with a strong balance sheet to support its ongoing efforts to become a self-sustaining biopharmaceutical business, delivering innovative treatments to patients worldwide.

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