FAST NEWS: Hutchmed swings to profit on strong revenue growth

The latest: Hutchmed (China) Ltd. (HCM.US; 0013.HK) announced Monday a net profit of $169 million in the first half of 2023, reversing a loss of $163 million in the same period last year.

Looking up: The company’s first-half revenue jumped 164% to $533 million, driven by a 294% increase in consolidated oncology/immunology revenue to $359.2 million and the partial down payment received from Takeda Pharmaceuticals on the drug licensing agreement, which was recognized as revenue in the period.

Take Note: Its R&D expenses decreased by 20% to $145 million, which management explained was mainly due to optimization of the product portfolio and strategic prioritization of pipeline products.

Digging Deeper: Founded in 2000, Hutchmed is a biopharmaceutical company owned by Hong Kong billionaire Li Ka-shing that develops and sells innovative cancer drugs. As of the end of June this year, three of the company’s drugs have been approved for marketing in China and have been included in China’s National Reimbursement Drug List, helping to achieve its first profit since listing in Hong Kong. In addition, the company has 13 other oncology drug candidates in clinical trials in China, with four of them in clinical development in the U.S. and Europe.

Market Reaction: Hutchmed’s New York-listed shares sank 4.4% to $14.07 on Monday. Its Hong Kong shares rose on Tuesday, closing up 2.6% at HK$23.6 by the midday break.

Translation by A. Au

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