HUTCHMED NASDAQ: HCM executives highlighted 2025 financial results, commercial momentum for its marketed oncology portfolio, and upcoming clinical and regulatory catalysts during a presentation at the 30th Deutsche Bank deposit receipts virtual investor conference.
2025 financial performance and liquidity
Matthew Kwong, VP of Finance, said the company was “pleased how the year ended,” citing FRUZAQLA as “the main driver,” with 26% in-market sales growth year-over-year. He also pointed to a rebound in China sales in the second half, with sales up 21% versus the first half.
Kwong said HUTCHMED ended the year with $1.4 billion in liquidity, which he said provides flexibility “to explore in-licensing, M&A, and opportunities to accelerate internal R&D.”
On the income statement, Kwong reported oncology revenue of $286 million, noting the year-over-year decrease was partly due to 2024 including more collaboration-related upfront and milestone income. He also said HUTCHMED generated bottom-line profit of $457 million, including a $416 million gain from the divestment of SHPL, which he described as a non-core investment. Kwong added that the company was profitable even excluding that one-time gain.
R&D expense was $148 million, down year-over-year. Kwong attributed the decline mainly to the timing of the company’s ATTC clinical trials, saying spending “should be ramping up as those move forward.”
2026 revenue guidance and commercial updates
Kwong said HUTCHMED issued 2026 revenue guidance of $330 million to $450 million, which he said reflects “solid growth from China for FRUZAQLA” and “potential new partnerships that we’re exploring.”
He added that Takeda, HUTCHMED’s collaboration partner for FRUZAQLA, has launched the product in 38 countries. He also highlighted ELUNATE as a key driver of China revenue, saying in-market sales increased 33% in the second half versus the first half, benefiting from the streamlining and refocusing of the China sales force earlier in the year.
Kwong said the company remained upbeat on ORPATHYS and SULANDA, citing an upcoming SAFFRON readout for ORPATHYS and that a pancreatic ductal adenocarcinoma (PDAC) Phase III trial is enrolling for SULANDA.
Savolitinib milestones and upcoming readouts
David Ng, Head of Investor Relations and Capital Strategies, reviewed 2025 progress for savolitinib, noting approval of the SACHI indication in China in mid-2025. He said two Phase III trials are ongoing: SANOVO in China for first-line lung cancer, with enrollment completed, and the global SAFFRON study, with enrollment also completed and now in follow-up. Ng said AstraZeneca is running the SAFFRON trial outside China and is targeting a second-half readout this year.
Ng also said an NDA for savolitinib in third-line gastric cancer has been accepted in China. Looking ahead, he emphasized the potential significance of SAFFRON, describing it as a controlled Phase III trial that, if successful, “should lead to a filing to the FDA later this year,” which could make it the company’s second innovative drug commercialized globally via AstraZeneca.
Discussing overall survival expectations, Ng referenced results from the China SACHI Phase III study, which has already supported approval in China. He said overall survival in the treatment arm was 22.9 months versus 7.9 months in the control group when excluding crossover patients, and cited a hazard ratio of 0.32. He noted that while crossover was allowed in SACHI, SAFFRON “is not supposed to allow crossover,” and said the SACHI overall survival figures “should be quite representative” of what may be seen in SAFFRON.
Sovleplenib regulatory plans and hematology expansion
Ng said the company resubmitted a China NDA for sovleplenib in immune thrombocytopenia (ITP) in February after previously encountering a CMC issue. He also said a Phase III trial in Warm AIHA met its endpoint, with an NDA submission targeted in the first half of this year. Ng said that if everything proceeds smoothly, the company hopes for a China launch in 2027, potentially with two indications.
He also described efficacy data he highlighted for sovleplenib, including a 48.4% durable response rate in patients who had tried and failed TPO or TPO-RA therapy and then switched to sovleplenib. For ex-China markets, Ng said the company is sharing data with potential partners and is “actively pursuing” partnering for overseas clinical development.
ATTC platform: early clinical progress and strategy
Ng described ATTC as a “chemo-free modality” that uses an antibody to target tumor cells but replaces the typical ADC chemotoxin payload with a small-molecule drug payload. He said the approach could allow previously potent but too-toxic small molecules to be used by directing them to tumor cells via conjugation, and suggested the platform could potentially support future frontline use and combination with chemotherapy if safety is favorable.
Ng said the company’s first ATTC candidate, A251, enrolled its first patient in December, and the second candidate, A580, recruited its first patient in March 2026. He said a third ATTC candidate is expected to enter clinical trials in the second half of this year, with additional details to be shared at that time.
Ng described A251’s design as a HER2-targeted conjugate using trastuzumab paired with an in-house PI3K/PIKK inhibitor payload intended to hit multiple nodes in the PAM pathway. He said preclinical work suggests activity in HER2-positive tumors even without PAM alteration, and that in HER2-low tumors activity may require PAM alterations, adding that ongoing Phase I testing will help determine both safety and efficacy.
Key watch items highlighted by management
- Savolitinib: SAFFRON data readout targeted for the second half of this year; SANOVO readout expected late this year or early 2027, according to Ng.
- Sovleplenib: Resubmitted ITP NDA in China; Warm AIHA NDA submission targeted for the first half of this year, with potential China launches discussed for 2027 if timelines hold.
- Fruquintinib: Ng said a potential third China indication in renal cell carcinoma could come mid-year, adding to colorectal and endometrial cancer indications already approved and included in the insurance program.
- Surufatinib: Ng said a Phase III pancreatic cancer trial is underway in first-line combination with chemotherapy, with recruitment hoped to complete toward the end of this year or early next year.
- ATTC: Two candidates in clinical trials and active pursuit of global development partnerships.
In Q&A, Ng addressed competitive pressures in China, arguing that “superior efficacy is a key differentiator” and pointing to new indications and insurance coverage as drivers. He also said Takeda is making progress internationally, citing Japan volume gains, anticipated reimbursement expansion in Europe, and U.S. uptake in fourth-line use with hopes for increased third-line penetration.
On business development, Ng said the company has “a strong cash balance” and is looking at potential assets “to complement and to obtain more synergies in our sales efficiency.” On pipeline risk, he said ATTC is a new modality that must demonstrate safety and efficacy in Phase I, while expressing confidence based on preclinical data and the company’s existing clinical and regulatory progress in the savolitinib franchise.
About HUTCHMED NASDAQ: HCM
HUTCHMED NASDAQ: HCM is a fully integrated biopharmaceutical company focused on discovering, developing, manufacturing and commercializing targeted therapies and immunotherapies for the treatment of cancer and other diseases. The company leverages in-house capabilities in small-molecule chemistry, biologics engineering and translational medicine to advance candidates through all stages of development. HUTCHMED's integrated model encompasses early discovery research, clinical development, regulatory filings and commercial launches, enabling seamless progression from laboratory to market.
HUTCHMED's commercial portfolio includes several in-market oncology therapies approved in China, including fruquintinib for metastatic colorectal cancer, surufatinib for neuroendocrine tumors and savolitinib for non-small cell lung cancer.
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