• Net Profit: Achieved profitability for 2024.
• FRUZAQLA Sales: Total sales of $290.6 million.
• Consolidated Revenue: $630 million.
• Net Income: $37 million.
• Oncology Business Revenue: Over $360 million.
• Cash Resources: Over $830 million, a reduction of around $50 million from 2023.
• 2025 Oncology Revenue Guidance: $350 million to $450 million.
• In-Market Sales: Oncology portfolio sales of $0.5 billion, more than double the sales of 2023.
• ELUNATE Sales: Achieved $115 million in 2025.

• Warning! GuruFocus has detected 4 Warning Sign with HCM.

Release Date: March 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• HUTCHMED (China) Ltd (NASDAQ:HCM) reported a net profit for 2024, achieving profitability ahead of schedule.
• FRUZAQLA achieved global commercial success with total sales of $290.6 million.
• Savolitinib received full approval in China and is expanding into new indications, positioning it well for potential global registration.
• The company ended the year with cash resources of over $830 million, reflecting a strong financial position.
• HUTCHMED's ATDC platform is progressing towards clinical trials, promising long-term growth beyond 2030.

Negative Points

• The company experienced a small reduction in cash resources, around $50 million from 2023.
• Increased competition in the market, particularly with the presence of five MET inhibitors, poses challenges.
• The oncology business revenue guidance for 2025 is $350 million to $450 million, reflecting potential variability in performance.
• The market environment is becoming more complicated with the entry of generics and new competitors.
• R&D expenses were down, raising questions about future investment levels, especially with the ATDC platform development.

Q & A Highlights

Q: Can you provide details on the Phase III plans for savolitinib in combination with TAGRISSO outside China, and what are your M&A plans for 2025? A: The Phase III trial for savolitinib combined with TAGRISSO is ongoing, involving 20 countries and over 200 sites. We anticipate completing recruitment this year, which could lead to global registration. Regarding M&A, we aim to leverage our strong cash position to acquire profitable oncology and immunology products that synergize with our pipeline.

Q: How do you plan to integrate your ATDC programs into your portfolio, and what are the criteria for nominating these programs? A: Our ATDC programs target major signaling pathways with known genetic alterations. We aim to initially pursue late-line single-agent studies and eventually move these products to frontline settings. The criteria for nominating programs include targeting genetic alterations with high incidence rates in tumors, and we plan to run global trials independently or with partners.

Q: What is the expected impact of fruquintinib's EU launch on your 2025 top line, and what should we expect from the SAVANNAH study results? A: Fruquintinib's EU launch, along with Japan and continued US growth, is expected to accelerate our top line. The SAVANNAH study, being a single-arm study, will support conditional approvals in certain regions, while the Safron study will be crucial for full global approval.

Q: How do you see the Mariposa trial affecting savolitinib's position, and what is the market potential for fruquintinib in the US? A: The Mariposa trial involves a chemo combo with non-selected patients, whereas savolitinib targets a specific patient population with a convenient oral regimen. In the US, fruquintinib has significant market potential, especially in the third-line setting, due to its proven efficacy and safety profile.

Q: What are your plans for ATDC candidates moving to clinical stages this year, and how does this align with your profitability goals? A: We plan to move multiple ATDC candidates to clinical stages this year, with one or two IND filings expected. Despite increased R&D investment in ATDCs, we aim to maintain profitability, leveraging our strong cash position and potential partnerships to manage expenses.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.