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Hutchmed China Ltd on Thursday reported a jump in profit during the first half of its current financial year, and forecasts a full-year decline in its key Oncology/Immunology segment. The Hong Kong-based developer of treatments for cancer and immunological diseases said net income multiplied to $455.6 million in the six months that ended June 30, from $25.8 million the year before. This was largely driven by a one-off $477.5 million gain on the disposal of a 45% stake in Shanghai Hutchison Pharmaceuticals, agreed in January for a cash total of $608.5 million. Hutchmed retains a 5.0% stake in the joint venture, which used to be split evenly between Hutchmed and Shanghai Pharmaceuticals Holding Co Ltd. GP Health Services Capital Co Ltd acquired 35% of the business, while Shanghai Pharma bought the remaining 10%. Hutchmed’s pretax income before equity in earnings of the equity investee swung to positive $495.6 million, from a $4.8 million loss a year earlier. Revenue, on the other hand, declined 9.2% to $277.7 million from $305.7 million. Total operating expenses were down 16% to £281.2 million from £333.2 million. ‘With a strong balance sheet, robust operations and an exciting new [antibody-targeted therapy conjugates] platform, Hutchmed is ready to enter a new phase of growth. Partnering is still a strategic focus, with multinational pharmaceutical companies remaining favourable towards such licensing opportunities with China biotech companies,’ said Non-Executive Chair Dan Eldar. ‘In recent months we have seen markets’ sentiment and performance have significantly improved. China domestic drug policy and pricing environment also manifest strengthened support for innovative drug development, with the potential introduction of a commercial insurance drug list later this year, targeting a diversified, multi-layered healthcare social security payment system down the road.’ Shares in Hutchmed China were 4.2% lower at 250.00 pence in London on Thursday afternoon. The stock has fallen 20% over the past year. Eldar continued: ‘We intend to prudently and actively deploy resources to expedite the development of a series of drug candidates from our novel ATTC platform, including synchronous clinical development in China and overseas.’ Hutchmed guides for $270 million to $350 million in consolidated revenue for its Oncology/Immunology segment in 2025. This is due to the phasing of milestone income from Hutchmed’s partners to 2026 and onwards, as well as the delayed completion of a new drug application review in China for sovleplenib, which is now expected after 2025. At the top end, this would be 3.7% lower than $363.4 million in 2024. At the lower end, this would represent a 26% decline. The company reported revenue of $143.4 million for Oncology/Immunology in the first half, down 15% from $168.6 million the year before. Revenue from other ventures slipped 2.0% to $134.2 million from $137.0 million. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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