China-based HutchMed (NASDAQ: HCM) has released its financial report for the first half of 2024, showing a 41% year-on-year decrease in total revenues to $305.7 million, in constant currency terms. The company’s oncology products segment reported a 64% increase in revenues to $127.8 million, while the oncology/immune business saw a significant decline of 52% to $168.7 million. Net profits for H1 2024 reached $25.8 million, with a cash balance of $802.5 million as of June 30, 2024, reflecting the company’s continued emphasis on key R&D projects and commercial efficiency.
Product sales and collaboration revenues were bolstered by the in-market sales of HutchMed’s novel oncology products, which grew by 145% year-on-year to $243.3 million. The growth was primarily driven by the successful launch of Fruzaqla (fruquintinib), contributing $61 million in China and $130.5 million in the US. Sulanda (surufatinib) and Orpathys (savolitinib) also saw increased in-market sales, up 17% and 22% year-on-year, respectively.
During the period, revenue from Takeda for upfront payments, milestones, and R&D services decreased to $33.8 million. HutchMed exercised its option for an exclusive license with Inmagene, securing approximately 7.5% of shares (fully diluted) for IMG-007, a nondepleting anti-OX40 antibody, and IMG-004, a highly selective oral BTK inhibitor. Other R&D services revenue totaled $7.1 million, mainly from AstraZeneca and Lilly for development and regulatory management.
R&D expenses were reduced by 34% to $95.3 million, attributed to strategic prioritization of the pipeline, particularly outside China. Clinical and regulatory expenses in the US and Europe amounted to $14.9 million, while R&D expenses in China were $80.4 million. Sales and administration expenses were $57.8 million, a decrease primarily due to stricter spending control and leveraging existing infrastructure to support revenue growth.- Flcube.com
