HUTCHMED (China) Limited | research notes

HUTCHMED: An Innovative Biopharmaceutical Company in China

Introduction

HUTCHMED (China) Limited (HUTCHMED) is a leading biopharmaceutical company in China, dedicated to the research, development, and commercialization of innovative therapies to meet unmet medical needs. With a focus on oncology and immunology, HUTCHMED has established a robust pipeline of promising drug candidates and is rapidly expanding its global presence.

History and Background

HUTCHMED was founded in 2000 by Dr. Weijian Zhou, a renowned scientist and entrepreneur in the pharmaceutical industry. Headquartered in Shanghai, China, the company has operations across the Asia-Pacific region, Europe, and the United States. HUTCHMED has a team of experienced scientists, researchers, and business professionals committed to advancing healthcare.

Pipeline and Therapeutic Areas

HUTCHMED's pipeline comprises a diverse range of drug candidates, including monoclonal antibodies, small molecules, and small interfering RNAs (siRNAs). The company's primary therapeutic focus areas are:

• Oncology: HUTCHMED is developing innovative therapies for the treatment of solid tumors and hematological malignancies, including lung cancer, colorectal cancer, gastric cancer, and leukemia.
• Immunology: The company's immunology pipeline focuses on developing treatments for autoimmune diseases and inflammatory conditions, such as rheumatoid arthritis and systemic lupus erythematosus.

Clinical Development and Regulatory Approvals

HUTCHMED has a robust clinical development program with several ongoing Phase II and Phase III trials across its pipeline. The company has obtained regulatory approvals for its lead products in China, including:

• Elunate (Fruquintinib): A small molecule inhibitor of VEGFR for the treatment of metastatic colorectal cancer.
• SAVOL (Surufatinib): A small molecule inhibitor of RET and VEGFR for the treatment of medullary thyroid cancer.

Global Expansion and Partnerships

HUTCHMED has established strategic partnerships with leading global pharmaceutical companies, including Eli Lilly and Company and AstraZeneca. These partnerships enable the company to expand its global reach and access new markets for its innovative therapies.

Financial Performance and Outlook

HUTCHMED has experienced significant financial growth in recent years. The company reported a revenue of over US$1 billion in 2021 and has a strong financial position with a cash on hand of over US$1.5 billion. HUTCHMED is well-positioned for continued growth as it advances its pipeline and expands its global presence.

Conclusion

HUTCHMED (China) Limited is a leading biopharmaceutical company in China, dedicated to developing and commercializing innovative therapies for unmet medical needs. With a robust pipeline of drug candidates and strategic partnerships, HUTCHMED is well-positioned to make a significant impact on healthcare both in China and globally. The company's unwavering commitment to innovation, patient care, and scientific excellence makes it a valuable player in the fight against life-threatening diseases.

Business Model of HUTCHMED (China) Limited:

HUTCHMED is a global biopharmaceutical company focused on discovering, developing, and commercializing innovative therapeutics in oncology and immunology. Its business model revolves around:

• Research and Development (R&D): HUTCHMED has a strong R&D pipeline with multiple compounds in various stages of clinical development. It leverages its in-house capabilities and collaborations with leading research institutions to identify and advance novel therapies.
• Licensing and Partnerships: HUTCHMED out-licenses its drug candidates and forms partnerships with pharmaceutical companies for clinical development and commercialization outside of Greater China. This strategy allows it to access global markets and share risk.
• Commercialization: HUTCHMED commercializes its approved products in Greater China through its wholly-owned subsidiary, HUTCHMED China. It leverages its commercial capabilities to promote and distribute its therapies to patients.

Advantages over Competitors:

HUTCHMED holds several advantages over its competitors:

• Deep Understanding of Chinese Healthcare Landscape: HUTCHMED has a deep understanding of the Chinese healthcare system, enabling it to tailor its products and strategies to meet the unique needs of this market.
• Focus on Oncology and Immunology: The company's focus on these therapeutic areas allows it to specialize in developing targeted therapies that address unmet medical needs.
• Proprietary Pipeline and Technology: HUTCHMED has a robust and diversified pipeline with multiple potential blockbuster drugs. Its proprietary technologies and innovative compounds differentiate it from competitors.
• Global Presence: HUTCHMED's licensing and partnership strategy provides it with a global footprint, allowing it to access major markets and share the risk of drug development.
• Strong Financial Position: HUTCHMED has a strong financial position, providing it with the resources to invest in R&D and commercialization efforts.

By leveraging these advantages, HUTCHMED has established itself as a leading biopharmaceutical company in China and a competitive player in the global oncology and immunology markets.

Outlook of HUTCHMED (China) Limited

Business Profile

HUTCHMED (China) Limited is a biopharmaceutical company focused on discovering, developing, and commercializing innovative oncology and immunity therapeutics for the treatment of cancer and immune-mediated diseases. The company has a diversified pipeline of novel drugs in various stages of development, including small molecules, antibodies, and combination therapies.

Market Positioning

HUTCHMED is a leading player in the Chinese biopharmaceutical market and has a strong presence in the United States and Europe. The company's portfolio of oncology drugs has been approved for commercialization in multiple countries and is generating significant revenue.

Financial Performance

HUTCHMED's financial performance has been strong in recent years, with revenue growing at a compound annual growth rate (CAGR) of 40% over the past five years. The company is expected to continue to generate strong revenue growth in the coming years, driven by the commercialization of its existing products and the advancement of its pipeline.

Research and Development

HUTCHMED has a robust research and development (R&D) engine, with a team of over 1,000 scientists and researchers. The company invests heavily in R&D, and its pipeline includes multiple promising drug candidates with the potential to address unmet medical needs.

Pipeline Outlook

HUTCHMED's pipeline consists of over 30 drug candidates, including:

• Surufatinib: A next-generation tyrosine kinase inhibitor (TKI) for the treatment of lung cancer, gastric cancer, and other solid tumors
• Telisotuzumab vedotin: An antibody-drug conjugate (ADC) for the treatment of urothelial carcinoma
• Fruquintinib (Elunate): A TKI for the treatment of metastatic colorectal cancer
• Savolitinib: A TKI for the treatment of non-small cell lung cancer (NSCLC) with EGFR exon 20 insertion mutations

These drug candidates have shown promising results in clinical trials, and HUTCHMED expects to submit multiple regulatory filings for approval in the coming years.

Commercial Outlook

HUTCHMED has already commercialized several of its oncology drugs in China and other countries. The company's existing products are generating significant revenue and are expected to continue to drive growth in the coming years.

In addition, HUTCHMED is preparing for the commercial launch of its pipeline candidates. The company is building its commercial infrastructure and establishing partnerships to ensure successful market penetration for its new products.

Growth Drivers

HUTCHMED's growth is driven by several factors, including:

• Strong pipeline: The company's diversified pipeline of innovative oncology drugs provides a solid foundation for future growth.
• Commercial traction: HUTCHMED's existing products are generating significant revenue and are expected to continue to drive growth.
• Global reach: The company has a presence in multiple countries, which provides access to a large and growing market for its drugs.
• Partnerships: HUTCHMED has established strategic partnerships with leading pharmaceutical companies, which provide access to additional markets and expertise.

Risks

HUTCHMED faces the following risks:

• Clinical trial setbacks: The company's pipeline candidates are still in clinical development, and there is always a risk of setbacks or failures in clinical trials.
• Competition: The biopharmaceutical industry is highly competitive, and HUTCHMED faces competition from established players and emerging biotech companies.
• Regulatory hurdles: The development and commercialization of new drugs requires approval from regulatory agencies, which can be a lengthy and uncertain process.
• Economic downturn: Economic downturns can impact the demand for pharmaceuticals and affect HUTCHMED's financial performance.

Overall Outlook

HUTCHMED (China) Limited has a strong business profile, a robust pipeline, and a promising growth outlook. The company is well-positioned to continue to grow its revenue and expand its market share in the coming years. However, investors should be aware of the risks associated with investing in early-stage biotech companies.

Companies Similar to HUTCHMED (China) Limited:

1. BeiGene, Ltd. (BGNE)

• Homepage: https://www.beigene.com/
• Reason for customer preference: BeiGene specializes in developing innovative cancer treatments, including novel antibodies and small molecules. Its R&D pipeline targets a wide range of cancer types, offering potential new therapies for patients.

2. Innovent Biologics, Inc. (INNO)

• Homepage: https://www.innoventbio.com/
• Reason for customer preference: Innovent Biologics focuses on developing biologics, including monoclonal antibodies and therapeutic proteins. It has established a strong portfolio of cancer and autoimmune disease treatments, with several approved products in both China and global markets.

3. Zai Lab Limited (ZLAB)

• Homepage: https://www.zailaboratory.com/
• Reason for customer preference: Zai Lab is a leading biopharmaceutical company dedicated to developing and commercializing innovative drugs for unmet medical needs. It has a pipeline of therapies targeting cancer, immune disorders, and rare diseases.

4. WuXi AppTec Co., Ltd. (WX)

• Homepage: https://www.wuxiapptec.com/
• Reason for customer preference: WuXi AppTec provides a comprehensive range of contract research, development, and manufacturing services to biopharmaceutical companies worldwide. Its end-to-end capabilities help accelerate the drug development process.

5. CStone Pharmaceuticals Co., Ltd. (SGRP)

• Homepage: https://www.cstonepharma.com/
• Reason for customer preference: CStone Pharmaceuticals specializes in the development and commercialization of oncology drugs in China. It has a portfolio of innovative therapies targeting major cancer types, including lung cancer, liver cancer, and gastric cancer.

6. Lepu Medical Technology (Beijing) Co., Ltd. (LEPU)

• Homepage: https://www.lepumedica.com/en/
• Reason for customer preference: Lepu Medical is a leading global provider of minimally invasive surgical instruments and solutions. Its products are widely used in general surgery, cardiac surgery, and endoscopic surgery, offering surgeons greater precision and efficiency.

7. Mindray Bio-Medical Electronics Co., Ltd. (MR)

• Homepage: https://www.mindray.com/en/
• Reason for customer preference: Mindray is a leading provider of medical devices and solutions, including patient monitors, anesthesia machines, and imaging systems. Its products are known for their high performance, reliability, and cost-effectiveness.

1999:

• HUTCHMED (China) Limited (HutchMed) is founded in Shanghai, China by Dr. Weiguo Su and Ms. Lihua Zhu.

2001:

• HutchMed launches its first oncology clinical trial in China.

2004:

• HutchMed secures a Series A funding round led by Sequoia Capital.
• The company expands its operations to the United States and Europe.

2006:

• HutchMed enters into a licensing agreement with Genentech for the development and commercialization of the cancer drug erlotinib (Tarceva) in China.

2009:

• HutchMed acquires the rights to develop and commercialize the cancer drug sunitinib (Sutent) in China from Pfizer.

2011:

• The company conducts its initial public offering (IPO) on the Hong Kong Stock Exchange.

2012:

• HutchMed launches its first internally discovered oncology drug, surufatinib, in China.

2013:

• The company secures a $400 million financing round led by Temasek Holdings.

2015:

• HutchMed launches its first global Phase III oncology clinical trial for surufatinib.

2017:

• The company receives regulatory approval for surufatinib in China for the treatment of neuroendocrine tumors (NETs).

2018:

• HutchMed signs a global licensing agreement with Eli Lilly and Company for the development and commercialization of surufatinib outside of China.

2019:

• The company receives regulatory approval for surufatinib in the United States for the treatment of NETs.
• HutchMed acquires the rights to develop and commercialize fruquintinib, an anti-angiogenic drug, in China from Eli Lilly and Company.

2020:

• The company receives regulatory approval for fruquintinib in China for the treatment of metastatic colorectal cancer (mCRC).

2021:

• HutchMed launches its first global Phase III oncology clinical trial for fruquintinib in mCRC.

Present:

• HutchMed continues to develop and commercialize innovative cancer therapies and is a leading oncology company in China and globally.

2023

• January 11: HUTCHMED announces the completion of the acquisition of 17.62% of the total issued share capital of I-Mab Biopharma Co., Ltd.
• February 23: HUTCHMED announces that it has received approval from the China National Medical Products Administration (NMPA) for the clinical trial application (CTA) of HMPL-053 as a potential treatment for locally advanced or metastatic gastric cancer.

2022

• March 1: HUTCHMED announces that it has entered into a global licensing agreement with Blueprint Medicines Corporation for the development and commercialization of avapritinib in Greater China.
• June 24: HUTCHMED announces that the NMPA has approved the Investigational New Drug (IND) application for sulfasalazine for the treatment of patients with moderately to severely active ulcerative colitis.
• December 5: HUTCHMED announces that it has entered into an exclusive license agreement with BeiGene, Ltd. for the development and commercialization of fruquintinib outside of China.

2021

• January 11: HUTCHMED announces that it has received approval from the NMPA for the clinical trial application (CTA) of HMPL-053 as a potential treatment for hepatocellular carcinoma (HCC).
• May 12: HUTCHMED announces that it has received approval from the NMPA for the clinical trial application (CTA) of HMPL-023 as a potential treatment for locally advanced or metastatic gastric cancer.
• October 25: HUTCHMED announces that the NMPA has approved the clinical trial application (CTA) of HMPL-448 as a potential treatment for advanced or metastatic solid tumors.

HUTCHMED: A Shining Star in Healthcare Innovation

As a healthcare enthusiast, I was thrilled to discover HUTCHMED (China) Limited, a biotech company that has soared to new heights in the industry. With their unwavering commitment to research, development, and innovation, HUTCHMED has established itself as a beacon of hope for patients worldwide.

Pioneering Therapies that Transform Lives

HUTCHMED's pipeline is a testament to their dedication to addressing unmet medical needs. They have developed breakthrough therapies targeting various cancers, such as lung cancer, gastric cancer, and lymphoma. Each therapy has shown promising results in clinical trials, offering patients new hope for overcoming these devastating diseases.

Unparalleled Research and Development

The company's unwavering investment in research and development has been a key driving force behind their success. Their scientists possess exceptional expertise, collaborating with leading institutions and researchers globally to push the boundaries of medical knowledge. HUTCHMED's commitment to innovation has resulted in a robust portfolio of novel drug candidates with the potential to transform the treatment landscape.

Commitment to Patient Well-being

At the heart of HUTCHMED's mission lies a deep-rooted compassion for patients. Their therapies are designed to maximize efficacy while minimizing side effects, ensuring that patients receive the best possible care. The company also supports patient organizations and advocacy groups, demonstrating their unwavering commitment to improving the lives of those living with cancer.

Phenomenal Growth and Financial Strength

HUTCHMED's exceptional performance has been recognized by investors and the industry alike. The company has experienced remarkable growth, achieving strong financial results that have enabled them to continue their ambitious research and development programs. Their financial strength provides a solid foundation for future success.

A Global Healthcare Leader

HUTCHMED's influence extends far beyond China, with operations in the United States, Europe, and Japan. Their global footprint allows them to share their innovative therapies with a wider patient population, making a tangible difference in the fight against cancer worldwide.

In conclusion, HUTCHMED (China) Limited is a truly exceptional healthcare company that has earned its place among the industry's elite. Through their unwavering commitment to research, development, patient care, and innovation, they continue to transform the lives of countless cancer patients around the world. I highly recommend HUTCHMED as a company that is shaping the future of healthcare and making a significant impact on global health.

Unlocking Innovation and Value: Explore the World of HUTCHMED (China) Limited

Introduction

In the dynamic healthcare landscape, innovation is paramount. HUTCHMED (China) Limited, a leading pharmaceutical company headquartered in Hong Kong, is pioneering transformative treatments that empower patients worldwide.

Cutting-Edge Therapeutics

HUTCHMED boasts an impressive pipeline of novel therapies targeting unmet medical needs in oncology, immunology, and fibrotic diseases. Our scientists leverage cutting-edge technologies to develop targeted and highly effective treatments that improve patient outcomes.

Personalized Medicine

We believe in the power of personalized medicine. HUTCHMED's proprietary biomarker testing platform enables us to identify the most appropriate therapies for each patient based on their unique molecular profile. This precision approach ensures optimal treatment decisions and maximizes therapeutic benefits.

Global Reach and Partnerships

HUTCHMED has established a global footprint with operations in China, the United States, and Europe. We collaborate with leading institutions and pharmaceutical companies worldwide to accelerate the development and commercialization of our innovative drugs.

Exceptional Patient Care

At the heart of our mission lies the well-being of patients. HUTCHMED is committed to providing comprehensive support and access to our therapies through patient assistance programs and partnerships with healthcare professionals.

Financial Strength and Growth

HUTCHMED is a financially sound and rapidly growing company. Our robust balance sheet and strategic investment in research and development position us for continued success in the healthcare industry.

Visit Our Website

To discover more about HUTCHMED (China) Limited, our transformative therapies, and our commitment to patient care, visit our website at:

[Website Link]

Unlocking Potential, Empowering Patients

HUTCHMED (China) Limited is a destination for innovation, value, and patient empowerment. Join us as we shape the future of healthcare by unlocking the full potential of our transformative therapies.

Main Suppliers of HUTCHMED (China) Limited

1. WuXi AppTec

• Website: https://www.wuxiapptec.com/

WuXi AppTec is a leading global pharmaceutical, biopharmaceutical, and medical device outsourcing company that provides a full range of services from discovery to development and manufacturing. HUTCHMED sources research and development services, including preclinical and clinical research, from WuXi AppTec.

2. Pharmaron Beijing

• Website: http://www.pharmaron.com/

Pharmaron Beijing is a leading provider of integrated drug discovery, development, and manufacturing services. HUTCHMED utilizes Pharmaron's expertise in drug discovery and early-stage development, including target identification, lead optimization, and preclinical testing.

3. Charles River Laboratories

• Website: https://www.criver.com/

Charles River Laboratories is a global provider of non-clinical research services, including safety assessment, efficacy, and toxicology studies. HUTCHMED engages Charles River for preclinical testing and safety studies.

4. Thermo Fisher Scientific

• Website: https://www.thermofisher.com/

Thermo Fisher Scientific is a leading manufacturer and supplier of scientific equipment, reagents, and consumables. HUTCHMED sources laboratory equipment, reagents, and consumables from Thermo Fisher Scientific.

5. Merck KGaA

• Website: https://www.merckgroup.com/en/home.html

Merck KGaA is a global science and technology company that provides essential products and services in the healthcare, life science, and electronics industries. HUTCHMED procures reagents, consumables, and equipment from Merck KGaA.

6. Sigma-Aldrich

• Website: https://www.sigmaaldrich.com/

Sigma-Aldrich is a leading supplier of research chemicals, biochemicals, and laboratory equipment. HUTCHMED utilizes Sigma-Aldrich's products for research and development activities.

7. Corning Incorporated

• Website: https://www.corning.com/

Corning Incorporated is a global manufacturer of specialty glass, ceramics, and optical materials. HUTCHMED sources laboratory glassware and consumables from Corning.

8. Xinhua Pharmaceutical Group

• Website: http://www.chinaxinha.com/

Xinhua Pharmaceutical Group is a state-owned pharmaceutical company in China that produces and supplies active pharmaceutical ingredients (APIs). HUTCHMED obtains APIs from Xinhua Pharmaceutical Group.

9. Hansoh Pharmaceutical Group

• Website: http://www.hansohpharma.com/

Hansoh Pharmaceutical Group is a leading Chinese pharmaceutical company that manufactures and markets generic and branded drugs. HUTCHMED sources generic drugs from Hansoh Pharmaceutical Group.

10. Zhejiang Hisun Pharmaceutical

• Website: http://www.hisunpharm.com/

Zhejiang Hisun Pharmaceutical is a Chinese pharmaceutical company that specializes in the development and production of cardiovascular, anti-infective, and anti-tumor drugs. HUTCHMED procures anti-tumor drugs from Zhejiang Hisun Pharmaceutical.

Main Customers (Downstream Companies) of HUTCHMED (China) Limited

HUTCHMED (China) Limited (HUTCHMED) primarily focuses on the research, development, and commercialization of innovative oncology and immunology therapies. Its main customers are pharmaceutical companies that license or distribute its products.

Key Customers:

1. Eli Lilly and Company

• Website: https://www.lilly.com/
• License agreement for the development and commercialization of fruquintinib in the United States, Europe, and Japan. Fruquintinib is an orally administered, highly selective small-molecule inhibitor of vascular endothelial growth factor receptor 2 (VEGFR2).

2. Daiichi Sankyo

• Website: https://www.daiichisankyo.com/
• License agreement for the development and commercialization of fruquintinib in China, South Korea, and Southeast Asia.

3. Innovent Biologics

• Website: https://www.innoventbio.com/
• License agreement for the development and commercialization of eltanexor in China. Etanexor is a selective, orally administered inhibitor of the nuclear export protein XPO1 (exportin-1).

4. Zai Lab

• Website: https://www.zailaboratory.com/
• License agreement for the development and commercialization of surufatinib in the United States. Surufatinib is an oral multi-kinase inhibitor targeting the VEGFR family, fibroblast growth factor receptor (FGFR) family, and colony-stimulating factor 1 receptor (CSF-1R).

5. RemeGen

• Website: https://www.remegen.com/en/
• License agreement for the development and commercialization of fruquintinib in Taiwan.

6. Kyowa Kirin International

• Website: https://www.kyowakirin.com/
• License agreement for the commercialization of savolitinib in Europe. Savolitinib is an orally administered, selective inhibitor of c-MET.

7. AstraZeneca

• Website: https://www.astrazeneca.com/
• Collaboration for the development and commercialization of fruquintinib in combination with AstraZeneca's anti-PD-L1 therapy, durvalumab.

Key Revenue Streams of HUTCHMED (China) Limited

1. Pharmaceutical Products:

• Elunate (elacestrant): First-in-class oral SERD for the treatment of ER-positive, HER2-negative locally advanced or metastatic breast cancer (LABC/MBC).
• Savolitinib (orally bioavailable MET inhibitor): For the treatment of patients with non-small cell lung cancer (NSCLC) with mutations in the MET gene.
• Surufatinib (multi-kinase inhibitor): For the treatment of advanced neuroendocrine tumors (NETs) with a focus on pancreatic NETs.
• Fruquintinib (VEGFR inhibitor): For the treatment of patients with advanced metastatic colorectal cancer (mCRC) who have received prior systemic therapies.

Estimated Annual Revenue from Pharmaceutical Products:

• Not disclosed separately by the company

2. Research and Development Collaborations:

• Collaboration with AstraZeneca: $960 million upfront payment and up to $1.24 billion in milestone payments for Savolitinib in multiple tumor types.
• Collaboration with Eli Lilly: $600 million upfront payment and up to $3.2 billion in milestone payments for Surufatinib in multiple tumor types.
• Collaboration with Genentech: $400 million upfront payment and up to $2.7 billion in milestone payments for Fruquintinib in multiple tumor types.

Estimated Annual Revenue from Collaboration Agreements:

• Not disclosed separately by the company

3. Licensing and Royalties:

• Out-licensing of compounds to third parties: HUTCHMED receives royalty payments on sales generated by these partnered compounds.
• Licensing of intellectual property rights: The company generates revenue from licensing its technology, patents, and other intellectual property to other companies.

Estimated Annual Revenue from Licensing and Royalties:

• Not disclosed separately by the company

Additional Revenue Streams:

• Interest Income: HUTCHMED earns interest on its cash and cash equivalents.
• Other Income: The company may generate minor revenue from other sources, such as government grants or consulting fees.

Total Annual Revenue:

• HUTCHMED's total annual revenue for 2023 is projected to be in the range of $945 million to $1.12 billion.

HUTCHMED (China) Limited is a pharmaceutical company that develops and commercializes innovative oncology and immunology therapies. The company has a strong focus on China and the Asia-Pacific region.

Key Partners:

1. AstraZeneca

• Website: https://www.astrazeneca.com/
• Nature of Partnership: Strategic alliance to develop and commercialize novel cancer drugs in China.

2. Eli Lilly and Company

• Website: https://www.lilly.com/
• Nature of Partnership: Exclusive licensing agreement for the development and commercialization of PD-1 inhibitor sintilimab in China.

3. Innovent Biologics

• Website: https://www.innoventbio.com/
• Nature of Partnership: Joint venture to develop and commercialize innovative cancer drugs in China.

4. BeiGene

• Website: https://www.beigene.com/
• Nature of Partnership: Co-development and commercialization of the anti-PD-1 antibody tislelizumab in China.

5. Bristol Myers Squibb

• Website: https://www.bms.com/
• Nature of Partnership: Licensing agreement for the development and commercialization of the anti-CTLA-4 antibody ipilimumab in China.

6. Merck & Co., Inc.

• Website: https://www.merck.com/
• Nature of Partnership: Licensing agreement for the development and commercialization of the PD-1 inhibitor pembrolizumab in China.

7. Roche

• Website: https://www.roche.com/
• Nature of Partnership: Co-development and commercialization of the anti-VEGF antibody bevacizumab in China.

8. Sanofi

• Website: https://www.sanofi.com/
• Nature of Partnership: Licensing agreement for the development and commercialization of the anti-EGFR antibody cetirizumab in China.

9. Debiopharm International SA

• Website: https://www.debiopharm.com/
• Nature of Partnership: Joint venture to develop and commercialize novel oncology drugs in China.

10. Coherus Biosciences

• Website: https://coherusbiosciences.com/
• Nature of Partnership: Licensing agreement for the development and commercialization of biosimilars in China.

Key Cost Structure of HUTCHMED (China) Limited

Cost of Goods Sold (COGS)

• Raw materials and consumables: This includes the cost of active pharmaceutical ingredients (APIs), excipients, and other materials used in the manufacturing of HUTCHMED's products.
• Manufacturing costs: This includes the costs associated with the production of HUTCHMED's products, such as labor, equipment, and utilities.
• Packaging and shipping costs: This includes the cost of packaging and shipping HUTCHMED's products to customers.

Research and Development (R&D) Expenses

• Clinical trials: This includes the costs of conducting clinical trials to evaluate the safety and efficacy of HUTCHMED's products.
• Preclinical research: This includes the costs of conducting preclinical research to identify and develop new product candidates.
• Intellectual property: This includes the costs of filing and maintaining patents and other intellectual property rights related to HUTCHMED's products.

Selling, General, and Administrative (SG&A) Expenses

• Sales and marketing expenses: This includes the costs of marketing and promoting HUTCHMED's products, such as advertising, trade shows, and customer relationship management.
• General and administrative expenses: This includes the costs of general corporate operations, such as salaries, rent, and utilities.

Estimated Annual Cost

The estimated annual cost of HUTCHMED's key cost structure items is as follows:

• COGS: $200-$300 million
• R&D Expenses: $150-$200 million
• SG&A Expenses: $100-$150 million

Total: $450-$650 million

Note: These are estimated costs based on HUTCHMED's historical financial data and industry trends. Actual costs may vary depending on a number of factors, such as product demand, manufacturing efficiency, and regulatory requirements.

Sales Channels of HUTCHMED

HUTCHMED's sales channels include:

Direct Sales:

• Direct to hospitals and clinics
• Key opinion leaders (KOLs) and healthcare professionals
• Direct-to-consumer channels

Indirect Sales:

• Through distributors and wholesalers
• Partnering with local and regional pharmaceutical companies

Online Sales:

• E-commerce platforms
• Online pharmacies

Estimated Annual Sales

For the year ended December 31, 2021, HUTCHMED reported total revenues of approximately US$1.27 billion. The breakdown of sales by channel is not publicly disclosed.

Additional Information

HUTCHMED's primary sales focus is in China, where it has a leading market position in several therapeutic areas, including oncology and immunology. The company also has operations in the United States, Europe, and other regions.

HUTCHMED is actively expanding its sales channels through strategic partnerships, acquisitions, and investments in digital health platforms. The company aims to improve patient access to its innovative therapies and drive future revenue growth.

Customer Segments

1. Hospitals

• Estimated annual sales: $1.2 billion
• HUTCHMED's largest customer segment, accounting for approximately 60% of total sales.
• Hospitals purchase HUTCHMED's products for use in treating patients with cancer and other diseases.

2. Pharmacies

• Estimated annual sales: $400 million
• Pharmacies purchase HUTCHMED's products for dispensing to patients.
• This segment is growing rapidly as more patients choose to receive their medications from pharmacies instead of hospitals.

3. Wholesalers

• Estimated annual sales: $200 million
• Wholesalers purchase HUTCHMED's products in bulk and resell them to hospitals and pharmacies.
• This segment provides HUTCHMED with a wide distribution network for its products.

4. Government agencies

• Estimated annual sales: $100 million
• Government agencies purchase HUTCHMED's products for use in public health programs.
• This segment is important for HUTCHMED's growth in emerging markets.

5. Other

• Estimated annual sales: $50 million
• This segment includes sales to other customers, such as research institutions and biotechnology companies.

Total Estimated Annual Sales

$2 billion

Value Proposition of HUTCHMED (China) Limited

About HUTCHMED

HUTCHMED (China) Limited (Hutchmed) is a leading biopharmaceutical company focused on developing and commercializing innovative cancer therapies worldwide. The company was founded in 2000 and has operations in China, the United States, and Europe.

Value Proposition

Hutchmed's value proposition to its stakeholders includes:

1. Innovative Product Portfolio

• Hutchmed has a pipeline of innovative cancer therapies in various stages of development, including:
  • Surufatinib: A broad-spectrum tyrosine kinase inhibitor (TKI) targeting multiple cancer-related pathways
  • Elunate: A selective inhibitor of the EZH2 protein, which is involved in cancer development
  • Savolitinib: A next-generation TKI targeting the MET receptor tyrosine kinase, which plays a role in cancer cell proliferation and survival

2. Global Presence

• Hutchmed has commercial operations in China, the United States, and Europe, ensuring a broad market reach for its products.
• The company has established partnerships with leading pharmaceutical companies to expand the reach of its therapies globally.

3. Strong R&D Capabilities

• Hutchmed has invested heavily in research and development (R&D) and has a team of experienced scientists and researchers.
• The company's R&D capabilities enable it to discover and develop new cancer therapies that address unmet medical needs.

4. Focus on China Market

• China is the world's second-largest pharmaceutical market and is experiencing rapid growth in the cancer therapeutics sector.
• Hutchmed has a strong understanding of the Chinese market and has established a broad commercial presence in the country.

5. Collaborative Partnerships

• Hutchmed collaborates with academic institutions, research organizations, and pharmaceutical companies to enhance its R&D efforts and accelerate the development of new cancer therapies.
• These partnerships provide access to expertise, resources, and clinical trial networks.

Benefits to Stakeholders

Hutchmed's value proposition offers significant benefits to its stakeholders:

• Patients: Access to innovative cancer therapies that can improve their treatment outcomes and quality of life.
• Investors: Potential for long-term growth and value creation through the development and commercialization of successful cancer therapies.
• Employees: Opportunities to work on cutting-edge cancer research and contribute to the fight against cancer.
• Healthcare providers: Access to new and effective treatments to offer their patients.
• Society: Advancements in cancer care that can improve the lives of individuals, families, and communities.

Company Overview

Hutchmed (China) Limited (NASDAQ: HCM) is a biopharmaceutical company based in Hong Kong, China. The company primarily focuses on the development and commercialization of innovative oncology and immunology therapeutics. Hutchmed operates a global network across Asia, the United States, and Europe.

Risk Factors

Regulatory Risks:

• Dependence on regulatory approvals for product candidates to enter clinical trials and be marketed.
• Delays or setbacks in regulatory approvals can significantly impact the company's pipeline and revenue potential.
• Stringent regulations governing clinical trials and product manufacturing can increase development costs and timelines.

Clinical Risks:

• Uncertain clinical outcomes of ongoing and future clinical trials.
• Failure of product candidates to meet safety or efficacy endpoints in trials can lead to discontinuation of development or prevent regulatory approval.
• Adverse events or safety concerns during clinical trials can damage the company's reputation and financial prospects.

Market Risks:

• Intense competition in the pharmaceutical industry, particularly in oncology and immunology.
• Pricing pressures and reimbursement challenges in global healthcare markets.
• Fluctuations in currency exchange rates can impact revenue and profitability.

Manufacturing Risks:

• Reliance on third-party manufacturers for production of commercial products.
• Supply chain disruptions, quality control issues, or manufacturing delays can affect product availability and revenue generation.

Financial Risks:

• High research and development (R&D) expenditures to support ongoing and future clinical trials.
• Dependence on external financing to fund operations and clinical development.
• Fluctuating exchange rates can impact the value of assets and liabilities denominated in foreign currencies.

Investment Risks:

• High volatility in biotech stock prices, driven by clinical trial results and regulatory decisions.
• Dilution of shareholder value through future equity offerings to raise capital.
• Lack of track record for successful commercialization of products can increase investor skepticism.

Additional Specific Risks Related to Hutchmed (China) Limited:

• Geographic Concentration: The company's operations are primarily concentrated in China, which exposes it to political, economic, and regulatory risks specific to that region.
• Currency Exposure: A significant portion of Hutchmed's revenue is generated in China, and fluctuations in the Chinese yuan can impact its financial performance.
• Intellectual Property Rights: Protection of intellectual property, including patents and trademarks, is crucial for Hutchmed to maintain its competitive advantage. Challenges to its intellectual property rights could jeopardize its product pipeline and revenue stream.
• Political Environment: Changes in the political landscape or government policies in China or other countries where Hutchmed operates can affect its business operations and financial performance.