China-based HutchMed Ltd (NASDAQ: HCM; HKG: 0013) has announced its unaudited financial results for the six months ended June 30, 2023, along with updates on key clinical and commercial developments. The company reported a significant increase in total revenues, which jumped by 164% (173% at constant exchange rate) to USD 532.9 million for the first half of 2023.
Oncology/Immunology Revenues Surge and Upfront Fee Recognition
The Oncology/Immunology segment saw consolidated revenues increase by 294% (301% at CER) to USD 359.2 million. This includes a USD 259 million upfront fee recognized from Takeda (TYO: 4502). In-market sales also expanded by 25% at CER to USD 101.3 million, indicating a strong performance in the company’s core therapeutic areas.
Milestone Payments and Revenue Recognition Outlook
HutchMed is eligible to receive up to USD 1.13 billion, which includes the USD 400 million upfront payment received in April 2023. The company anticipates additional potential payments of up to USD 730 million related to regulatory, development, and commercial sales milestones, as well as royalties on net sales. As a result, HutchMed expects to recognize approximately USD 280 million in revenue for the year 2023.
Active Clinical Pipeline with Multiple Registration Studies
HutchMed’s robust pipeline includes over 15 registration studies across seven drug candidates. The second half of the year is anticipated to bring readouts from registration studies for two potential new medicines in China: sovleplenib and amdizalisib. Additionally, regulatory studies for savolitinib and the FGFR inhibitor HMPL-453 in intrahepatic cholangiocarcinoma have been initiated. The SHP2 inhibitor HMPL-415 has also entered clinical trials, further expanding the company’s clinical development efforts.-Fineline Info & Tech
