HUTCHMED (China) Limited (HCM): Business Model Canvas [Dec-2025 Updated]

You're digging into HUTCHMED (China) Limited's (HCM) structure right now, especially after their H1 2025 results and that big push into the Antibody-Targeted Therapy Conjugate (ATTC) platform. Honestly, what you'll see below isn't just a standard pharma model; it's a dual engine of proprietary R&D-backed by a $1.36 billion cash position as of June 30, 2025-and high-value global partnerships like the one with Takeda. They are turning China-originated science into global revenue streams through product sales, royalties, and milestone payments, like the $11.0 million from AstraZeneca in H1 2025. It's a complex but clear blueprint for growth. Dive into the nine blocks to see exactly how they are structuring the commercialization and development costs against those revenue targets.

HUTCHMED (China) Limited (HCM) - Canvas Business Model: Key Partnerships

You're looking at how HUTCHMED (China) Limited structures its external relationships to bring its discovered assets to market, which is a huge part of its value proposition. These alliances share risk, fund development, and provide global reach where HUTCHMED focuses its commercial strength.

AstraZeneca for co-development and commercialization of ORPATHYS® (savolitinib).

HUTCHMED (China) Limited and AstraZeneca share development costs for ORPATHYS in China, with HUTCHMED leading that development effort. AstraZeneca leads and funds the development outside of China. The agreement includes a fixed royalty on all sales in China and double-digit tiered royalties on all sales made outside of China. A recent event in H1 2025 was the China approval of ORPATHYS for a third lung cancer indication on June 30, 2025, which resulted in a milestone payment to HUTCHMED (China) Limited of $11.0 million from AstraZeneca.

Takeda for global ex-China commercialization of FRUZAQLA® (fruquintinib).

Under this exclusive license agreement, HUTCHMED (China) Limited is eligible for additional payments based on regulatory, development, and commercial sales milestones, as well as royalties on net sales outside of China. For the six months ended June 30, 2025, in-market sales of FRUZAQLA ex-China by Takeda reached $162.8 million, marking a 25% increase over the prior year period (H1-24: $130.5m). Takeda's geographical coverage expanded to more than 30 countries, including over 10 new markets in 2025. Revenue recognized by HUTCHMED (China) Limited from Takeda for upfront, regulatory milestones, and R&D services in H1 2025 was $29.5 million.

Eli Lilly for co-development and commercialization of ELUNATE® (fruquintinib) in China.

HUTCHMED (China) Limited shares the costs of future development of fruquintinib in China with Eli Lilly. HUTCHMED (China) Limited receives upfront payments, development and regulatory approval milestone payments, and double-digit tiered royalties. For the first half of 2025, ELUNATE revenue was $43.0 million, compared to $61.0 million for the first half of 2024. ELUNATE is set to continue inclusion on China's National Reimbursement Drug List (NRDL) effective January 1, 2026.

Ipsen for tazemetostat development and commercialization in Greater China.

HUTCHMED (China) Limited collaborates with an Ipsen subsidiary to develop and commercialize tazemetostat in Greater China, with HUTCHMED (China) Limited responsible for commercialization there upon approval. Tazemetostat was launched in mainland China in July 2025. TAZVERIK revenue for H1 2025 was $0.7 million.

ImageneBio and Miragene for novel immunological drug candidates.

HUTCHMED (China) Limited granted exclusive options for IMG-007 (with ImageneBio) and IMG-004 (with Miragene) for worldwide development and commercialization, with HUTCHMED (China) Limited retaining first right to co-commercialization in mainland China. HUTCHMED (China) Limited is entitled to milestone payments and royalties.

The potential payments structure for each of the two drug candidates is as follows:

Payment Type	Maximum Potential Payment Per Candidate (USD)
Development Milestones	$92.5 million
Commercial Milestones	$135 million

HUTCHMED (China) Limited holds an approximate 3.67% shareholding in ImageneBio, Inc. In April 2025, positive results for IMG-007 in atopic dermatitis showed an EASI-75 response rate of 54% at week 16.

Key financial and commercial data points related to these partnerships for the first half of 2025:

• ORPATHYS (savolitinib) China approval triggered a $11.0 million milestone payment from AstraZeneca in H1 2025.
• FRUZAQLA (fruquintinib ex-China) in-market sales by Takeda reached $162.8 million in H1 2025.
• ELUNATE (fruquintinib China) revenue was $43.0 million in H1 2025.
• Takeda upfront, regulatory milestones, and R&D services revenue recognized was $29.5 million in H1 2025.
• TAZVERIK revenue in H1 2025 was $0.7 million.

HUTCHMED (China) Limited (HCM) - Canvas Business Model: Key Activities

In-house discovery and development of novel targeted therapies and immunotherapies.

• The ATTC platform integrates monoclonal antibodies with proprietary small-molecule inhibitor payloads to deliver dual mechanisms of action.
• Lead ATTC candidate, HMPL-A251, harnesses a selective PI3K/PIKK inhibitor payload.
• HMPL-A251 preclinical activity assessment covered 130 tumor cell lines in vitro.
• Preclinical models showed HMPL-A251 free payload plasma exposure in vivo with a mass ratio <1:500,000.

Global and China-focused clinical trial execution (e.g., HMPL-306 Phase III).

Trial/Candidate	Phase/Status	Key Metric/Endpoint	Value/Result
HMPL-306 (Ranosidenib)	China Phase III (RAPHAEL) initiated May 2024	Phase 1 RP2D (Cycle 1/Cycle 2+)	250 mg QD / 150 mg QD
HMPL-306 (Ranosidenib)	Phase 1 Median Overall Survival (mOS)	mIDH1: 13.4 months; mIDH2: 13.1 months
ORPATHYS (Savolitinib) + TAGRISSO	SACHI China Phase III (2L EGFRm NSCLC, MET amp)	mPFS (ITT population)	8.2 months vs Chemotherapy 4.5 months
ORPATHYS (Savolitinib) + TAGRISSO	SAVANNAH Global Phase II (2L EGFRm NSCLC, MET amp/overexpression)	mPFS	7.4 months (with ORPATHYS+TAGRISSO)
Fruquintinib + Sintilimab	FRUSICA-2 Phase III (RCC)	Progression-Free Survival (PFS)	22.2 months vs Standard-of-Care 6.9 months
Fruquintinib + Sintilimab	FRUSICA-2 Phase III (RCC)	Objective Response Rate (ORR)	60.5% vs Standard-of-Care 24.3%

Recruitment for the SAFFRON global Phase III trial for ORPATHYS is expected to complete in the second half of 2025.

Manufacturing and supply chain management for commercial products.

HUTCHMED (China) Limited had a cash balance of $1.36 billion as of June 30, 2025.

Commercialization and marketing of approved oncology products in China.

• Total in-market sales in China for ELUNATE^®, SULANDA^® and ORPATHYS^® decreased by 4% in the first half of 2025 compared to the first half of 2024.
• ELUNATE^® (fruquintinib China) H1 2025 in-market sales were $43.0 million (H1-24: $61.0 million).
• ORPATHYS^® (savolitinib) secured its third China indication on June 30, 2025, triggering a $11.0 million milestone payment from AstraZeneca.
• ELUNATE, ORPATHYS, and SULANDA are included in the updated National Reimbursement Drug List (NRDL) effective Jan 1, 2026.

For context, FRUZAQLA^® (fruquintinib ex-China) in-market sales by Takeda were $162.8 million in H1 2025, up 25%.

Advancing the next-generation Antibody-Targeted Therapy Conjugate (ATTC) platform.

• HUTCHMED plans to initiate China and global clinical trials for the first ATTC drug candidate around the end of 2025.
• The ATTC platform leverages over 20 years of expertise in targeted therapies with small molecules inhibitors.

As of November 28, 2025, HUTCHMED's stock price was $2.94, with a Market Cap of $2.53B.

HUTCHMED (China) Limited (HCM) - Canvas Business Model: Key Resources

You're looking at the core assets HUTCHMED (China) Limited (HCM) relies on to execute its strategy, which is heavily focused on in-house discovery and global partnerships. These aren't just line items; they are the engine for their next wave of growth.

The financial foundation is solid, giving them the runway to push their pipeline forward. As of June 30, 2025, HUTCHMED (China) Limited reported a strong cash balance of $1.36 billion. This figure was significantly boosted by a $416.3 million divestment gain, net of tax, from the disposal of a partial equity stake in a non-core joint venture (SHPL) in April 2025.

The company's intellectual property is centered around its proprietary in-house R&D platforms. This includes the new Antibody-Targeted Therapy Conjugate (ATTC) technology, which leverages over 20 years of expertise in targeted therapies with small molecule inhibitors. The ATTC platform is designed to offer a dual mechanism of action, combining monoclonal antibodies with proprietary small-molecule inhibitor payloads, aiming for synergistic anti-tumor activity and durable responses. The lead candidate from this platform is HMPL-A251, which HUTCHMED (China) Limited expected to advance into clinical development starting in late 2025.

HUTCHMED (China) Limited maintains a portfolio of drug candidates that have reached significant clinical and commercial milestones. This pipeline depth is a critical resource, supporting their long-term goal of delivering targeted and immuno-oncology therapies.

Here's a snapshot of their late-stage and commercial assets:

• Cash Balance (as of June 30, 2025): $1,364.5 million.
• ATTC Platform Lead Candidate: HMPL-A251, expected to enter clinical development in late 2025.
• Recent China Approval: ORPATHYS® (savolitinib) secured its third lung cancer indication approval on June 30, 2025.
• Recent China Launch: TAZVERIK® (tazemetostat) launched in mainland China in July 2025.
• Upcoming Filings: Fanregratinib for intrahepatic cholangiocarcinoma (IHCC) filing planned for the first half of 2026.

The company's ability to secure and manage global licensing and co-development agreements is a major resource, validating their science externally and providing significant non-dilutive funding through milestones. Key partners include:

Partner Product/Area Scope of Agreement AstraZeneca Savolitinib (ORPATHYS®) Global co-development and commercialization; HUTCHMED leads China development. Eli Lilly Fruquintinib (ELUNATE®) Licensing, co-development, and commercialization in China. Takeda Fruquintinib (FRUZAQLA®) Exclusive license for global development, commercialization, and manufacture outside of China. Epizyme (Ipsen subsidiary) Tazemetostat (TAZVERIK®) Collaboration for research, development, manufacture, and commercialization in Greater China. ImageneBio and Miragene IMG-007 (OX40 antibody) and IMG-004 (BTK inhibitor) Partnerships to develop two novel drug candidates for immunological diseases.

Finally, the human capital-the specialized scientific and clinical development talent-is crucial, with operations spanning across China and the US, including locations like Hong Kong, Shanghai, and Florham Park, NJ. This geographically diverse team supports both in-house discovery and the execution of global clinical trials, which is a stated intent for their ATTC platform candidates.

Finance: draft 13-week cash view by Friday.

HUTCHMED (China) Limited (HCM) - Canvas Business Model: Value Propositions

HUTCHMED (China) Limited offers targeted therapies and immunotherapies addressing significant unmet needs in oncology and immunology.

Innovative, targeted oral therapies for difficult-to-treat cancers (e.g., ORPATHYS®)

• ORPATHYS® (savolitinib) secured China approval for its third lung cancer indication on June 30, 2025.
• ORPATHYS® in-market sales in China for the full year 2024 were $45.5 million.
• HUTCHMED recognized a regulatory milestone payment of $11.0 million from AstraZeneca following the June 2025 China NDA approval for ORPATHYS® combined with TAGRISSO®.

Chemotherapy-free combination treatment options for lung cancer patients

The combination of ORPATHYS® and TAGRISSO® is positioned as the only oral, chemotherapy-free approach for a sizable patient segment, estimated at approximately ~30% of EGFRm NSCLC patients following progression on an EGFR tyrosine kinase inhibitor.

Global development of novel drugs originating from China

HUTCHMED is focused on globalizing its pipeline, evidenced by the success of its fruquintinib franchise:

Metric	Product/Region	Value (H1 2025)	Comparison/Context
In-market Sales	FRUZAQLA® (ex-China)	$162.8 million	Up 25% compared to H1-24 ($130.5m)
Revenue	ELUNATE® (China)	$43.0 million	Reflecting competitive pressures
Total Oncology/Immunology Consolidated Revenue	All Products (H1 2025)	$143.5 million	Including milestone and service income

Potential for superior efficacy and safety via the new ATTC platform

The next-generation Antibody-Targeted Therapy Conjugate (ATTC) platform is moving rapidly toward clinical application. HUTCHMED plans to initiate global clinical trials for its lead candidate, HMPL-A251, around the end of 2025.

• HMPL-A251 is a PAM-HER2 ATTC utilizing a PI3K/PIKK inhibitor payload.
• The platform is expected to lead to collaboration and licensing opportunities in the future based on positive initial responses from potential partners.

Addressing unmet medical needs in oncology and immunological diseases

The commitment to discovery and development is supported by a strong financial position, allowing for continued investment despite streamlining efforts. R&D investment in China for the first half of 2025 was $64.4 million, with total R&D Expenses reduced by 24% to $72.0 million (H1-24: $95.3m).

The Company maintained a robust balance sheet as of June 30, 2025, with a cash balance of $1.36 billion.

HUTCHMED (China) Limited (HCM) - Canvas Business Model: Customer Relationships

You're looking at how HUTCHMED (China) Limited builds and maintains its critical connections across partners, doctors, and patients. It's a multi-pronged approach, balancing global strategy with deep local execution in China.

Strategic, long-term co-development relationships with global pharma partners.

HUTCHMED (China) Limited structures its external development around established, long-term collaborations. For instance, the agreement with AstraZeneca for savolitinib (ORPATHYS® in China) has already resulted in $91 million in upfront, development, and approval milestones paid to HUTCHMED (China) Limited. More recently, an approval in June 2025 triggered an additional $11.0 million milestone payment from AstraZeneca. The partnership with Eli Lilly for fruquintinib involves sharing future development costs in China and entitles HUTCHMED (China) Limited to up to double-digit royalties upon commercialization. Outside of China, Takeda, marketing FRUZAQLA®, reported sales up 25% to $162.8 million in the first half of 2025. Furthermore, the company is actively cultivating relationships for its new Antibody-Targeted Therapy Conjugates (ATTC) platform, with initial responses from potential partners being very positive, aiming to initiate China and global clinical trials for the first ATTC candidate around the end of 2025.

These relationships are formalized through specific agreements:

• Global licensing, co-development, and commercialization with AstraZeneca for savolitinib.
• Licensing, co-development, and commercialization in China with Eli Lilly for fruquintinib.
• Collaboration with Ipsen subsidiary Epizyme for tazemetostat in Greater China.
• Partnerships with ImageneBio and Miragene for IMG-007 and IMG-004, retaining up to double-digit royalties.

Direct, science-driven engagement with oncologists and specialists in China.

The company relies on a substantial, dedicated internal sales force to connect directly with the Chinese medical community. This team is built for science-driven conversations, which is key in targeted therapy. You should note the scale of this direct engagement:

Metric	Number as of Late 2025 Data
Oncology-Specialized Salespeople	Approximately 740
Provinces and Municipalities Covered	30
Key Hospitals and Cancer Centers Covered	Approximately 3,200
Oncology Physicians Reached	Over 22,000+

This team is currently responsible for the commercialization of three approved oncology drugs in China: ELUNATE® (fruquintinib), SULANDA® (surufatinib), and TAZVERIK® (tazemetostat). Still, competition is felt; in-market sales in China for ELUNATE®, SULANDA®, and ORPATHYS® decreased in the first half of 2025 compared to the first half of 2024, contributing to a total in-market sales drop of 4% for those products.

Investor relations and transparent R&D updates to the financial community.

HUTCHMED (China) Limited provides regular, detailed updates to ensure the financial community understands the pipeline and commercial trajectory. For example, the management hosted the 2025 Interim Result Presentation on August 7, 2025. The company reported a record high net income attributable to HUTCHMED of $455.0 million for the first half of 2025, significantly boosted by a $416.3 million divestment gain from a partial joint venture disposal. The cash balance as of June 30, 2025, stood at $1.36 billion. The updated full year 2025 guidance for Oncology/Immunology consolidated revenue was set between $270 million - $350 million. As of November 28, 2025, the stock was trading at $2.94, reflecting a market capitalization of $2.53B.

Key investor touchpoints include:

• Announcing 2024 final results on March 19, 2025.
• Hosting the 2025 Interim Result Presentation on August 7, 2025.
• Providing R&D updates, such as anticipating data readout for the surufatinib PDAC Phase II trial in late 2025.

Patient access programs via inclusion on national reimbursement lists.

Securing national reimbursement is vital for patient access in China, where, as of the end of 2024, about 95% of the population, or 1.33 billion people, had basic medical insurance coverage. HUTCHMED (China) Limited successfully renewed contracts for its key products:

Drug Name	Reimbursement Status (Effective Jan 1, 2026)	List Type
ELUNATE® (fruquintinib)	Continued Inclusion	National Reimbursement Drug List (NRDL)
ORPATHYS® (savolitinib)	Continued Inclusion	National Reimbursement Drug List (NRDL)
SULANDA® (surufatinib)	Continued Inclusion	National Reimbursement Drug List (NRDL)
TAZVERIK® (tazemetostat)	Inclusion	National Commercial Health Insurance Innovative Drug List

Inclusion on the NRDL is subject to renewal every two years. The establishment of the new Commercial Insurance Drug List in July 2025 creates a multi-level system to cover medicines with high innovation that fall beyond basic insurance scope.

HUTCHMED (China) Limited (HCM) - Canvas Business Model: Channels

You're looking at how HUTCHMED (China) Limited gets its value propositions to the customer, which involves a mix of direct selling in China and leveraging global partners outside of it. It's a dual-pronged approach to market access, which is critical in the pharma space.

The ex-China commercial channel relies heavily on established partners. For instance, the fruquintinib partnership with Takeda is a prime example of this channel strategy. Takeda holds the exclusive worldwide license to develop, commercialize, and manufacture fruquintinib outside mainland China, Hong Kong, and Macau, where it is marketed as FRUZAQLA®.

The direct commercial channel in China is focused on proprietary sales and marketing staff targeting key prescribers for their in-house marketed drugs. HUTCHMED has been actively optimizing this structure; for example, in the first half of 2025, the company stated it has streamlined its sales force to establish a more efficient commercial organization and enhance productivity.

Market access within China is heavily influenced by government inclusion programs, which act as a massive channel for volume. The continuation of key products on these lists is a major channel validation event.

For pipeline advancement, the channel involves global clinical trial sites, which are essential for gathering the data needed for future regulatory submissions and commercial launches worldwide.

Here is a breakdown of the key channel metrics and status as of late 2025:

Channel Component	Metric/Status	Data Point/Value
Partner Commercial Network (Ex-China)	FRUZAQLA® (Fruquintinib) Net Sales by Takeda (H1 2025)	$162.8 million
Partner Commercial Network (Ex-China)	FRUZAQLA® (Fruquintinib) Net Sales by Takeda (2024)	$290.6 million
Partner Commercial Network (Ex-China)	Geographical Coverage for FRUZAQLA® (as of H1 2025)	Over 30 countries, including over 10 new markets in 2025
Direct Commercial Sales Force (China)	Total Personnel (as of Nov 2025)	1,811 total employees
Direct Commercial Sales Force (China)	Oncology/Immunology Personnel (as of mid-2024)	About 1,800
NRDL/Reimbursement Channel	NRDL Inclusion Effective Date (ELUNATE®, ORPATHYS®, SULANDA®)	January 1, 2026
NRDL/Reimbursement Channel	China Population with Basic Medical Insurance (End of 2024)	1.33 billion people, representing about 95%
Pipeline Development Channel	Total Clinical Stage Investigational Drug Candidates (as of Oct 31, 2025)	More than ten

The key elements supporting the China commercial channel are:

• Inclusion of ELUNATE®, ORPATHYS®, and SULANDA® on the NRDL effective January 1, 2026.
• Inclusion of TAZVERIK® in the first edition of the National Commercial Health Insurance Innovative Drug List.
• ORPATHYS® secured a third China approval on June 30, 2025, making it eligible for potential national reimbursement negotiation.
• HUTCHMED has been focusing on a more efficient commercial organization following streamlining of its sales force.

The global clinical trial channel is actively progressing late-stage assets:

• Recruitment for the SAFFRON global Phase III study (savolitinib) is expected to complete in late 2025.
• Data readout for the Phase II part of the SULANDA® (surufatinib) Phase II/III trial for metastatic pancreatic cancer is targeted for the second half of 2025.
• HUTCHMED plans to advance its lead ATTC candidate, HMPL-A251, into clinical development starting in late 2025.

For the ex-China channel, the partnership with Takeda for FRUZAQLA® (fruquintinib) has been a significant revenue driver, including a $20 million milestone payment received in late 2024 after Takeda's net sales surpassed $200 million for the nine months ending September 2024. This partnership also saw Takeda's in-market sales grow by 25% in the first half of 2025.

HUTCHMED (China) Limited (HCM) - Canvas Business Model: Customer Segments

You're looking at the patient populations and partners HUTCHMED (China) Limited targets with its innovative therapies, which is the core of their business now that they've streamlined operations.

HUTCHMED (China) Limited focuses its commercial and development efforts on specific patient groups where their in-house discovered medicines, or those developed with partners, offer a differentiated treatment option. This focus is sharpened following the January 2025 divestment of its 45% equity interest in Shanghai Hutchison Pharmaceuticals Limited (SHPL) for approximately US$608 million (RMB4,478 million) in cash, allowing a pivot to core oncology and immunology assets.

The primary customer segments are:

• Oncology patients in China with specific genetic markers or tumor types.
• Global oncology patients reached through commercial partners.
• Patients with chronic immunological diseases, particularly ITP.
• Other pharmaceutical companies looking to access or partner on China-originated assets.

The company has its first three medicines marketed in China, with the first one also approved in key global markets.

Oncology Patients in China with Metastatic Colorectal Cancer, NSCLC, and Neuroendocrine Tumors

This segment is served by medicines like ELUNATE®, ORPATHYS®, and SULANDA®, all included on the updated National Reimbursement Drug List (NRDL) effective January 1, 2026. For Non-Small Cell Lung Cancer (NSCLC), ORPATHYS® (savolitinib) in combination with TAGRISSO® targets EGFRm NSCLC patients with MET amplification after progression on EGFR inhibitor treatment, a population representing a sizable percentage, approximately ~30%, of these patients. For Neuroendocrine Tumors (NETs), SULANDA® is indicated for progressive non-functional well-differentiated NETs. The China sales for ELUNATE® (fruquintinib China) reached $43.0 million in the first half of 2025.

Global Oncology Patients in Markets like the US, EU, and Japan via Partners

Global reach is primarily driven by partnerships, most notably with Takeda for FRUZAQLA® (fruquintinib ex-China). In-market sales for FRUZAQLA® by Takeda were up 25% to $162.8 million in the first half of 2025, expanding coverage to more than 30 countries. Reimbursement was secured in the US and Japan in 2024, and a positive recommendation for NHS reimbursement in England and Wales was received in July 2025. HUTCHMED's first medicine is approved in the US, Europe, and Japan.

Patients with Immunological Diseases like Chronic Primary Immune Thrombocytopenia (ITP)

HUTCHMED (China) Limited retains worldwide rights to sovleplenib for ITP. The patient population size provides the scale for this segment:

Region	Primary ITP Patient Estimate	Basis
China	Approximately 110,000 patients	Prevalence of 9.5 per 100,000 adults.
US, Germany, France, Italy, Spain, UK, and Japan	56,000 patients	Prevalence of 9.5 per 100,000 adults.
Other Major Pharma Markets (Excluding China)	As many as 145,000 patients	Estimated chronic ITP patients.

The China Phase III trial (ESLIM-01) for sovleplenib in primary ITP enrolled 188 adult patients. The New Drug Application (NDA) for sovleplenib in China is targeted for resubmission in the first half of 2026.

Multinational Pharmaceutical Companies Seeking Novel China-Originated Assets

This segment involves strategic alliances for co-development and commercialization, evidenced by financial transactions and milestone payments. For example, the China NDA approval for ORPATHYS® combined with TAGRISSO® triggered a $11.0 million milestone payment from AstraZeneca. Furthermore, HUTCHMED's focus on its core pipeline, including the Antibody-Targeted Therapy Conjugate (ATTC) platform with its lead candidate HMPL-A251, is designed to attract future collaboration and licensing opportunities.

The company's Oncology/Immunology consolidated revenue, including milestone and service income, was $143.5 million for the first half of 2025. The full-year 2025 guidance for Oncology/Immunology consolidated revenue is set between $270 million and $350 million.

Finance: review cash runway against planned ATTC global development spend by next week.

HUTCHMED (China) Limited (HCM) - Canvas Business Model: Cost Structure

You're looking at the cost side of HUTCHMED (China) Limited's operations as of late 2025, based on the first half of the year's performance. Honestly, the numbers show a clear focus on efficiency while pushing forward the pipeline.

The total Net Expenses for the six months ended June 30, 2025, were reported at $239.0 million, which was a reduction from $279.9 million in the same period last year, showing strong cost control efforts. This aggregate figure is composed of several key areas that drive the business.

The breakdown of these expenses highlights where the capital is being deployed:

• Significant R&D expenditure for clinical trials and discovery programs.
• Costs associated with accelerating the global ATTC platform development.
• Manufacturing costs and cost of goods sold for commercial products.
• Sales, General, and Administrative (SG&A) expenses for the China commercial team.
• Costs related to regulatory filings and global market approvals.

Here's a look at the primary reported expense categories for the six months ended June 30, 2025:

Cost Category	H1 2025 Amount (US$ Millions)	H1 2024 Amount (US$ Millions)
Total Net Expenses	239.0	279.9
Cost of Revenue	167.6	180.1
Research and Development (R&D) Expenses	72.0	95.3
Selling, General, and Administrative (SG&A) Expenses	41.6	57.8

Significant R&D expenditure for clinical trials and discovery programs.

R&D Expenses saw a notable reduction, coming in at $72.0 million for the first half of 2025, down 24% from $95.3 million in H1 2024. This reduction reflects lower costs from completed studies that are now under New Drug Application (NDA) review or already achieved NMPA approval in H1 2025. The investment was split geographically:

• R&D investment in China was $64.4 million (H1 2024: $80.4m).
• R&D investment outside China reduced to $7.6 million (H1 2024: $14.9m) as global R&D operations integrated with China.

Costs associated with accelerating the global ATTC platform development.

While a specific line item for ATTC acceleration costs isn't broken out, the overall R&D spend supports this. HUTCHMED plans to initiate China and global clinical trials for its first Antibody Targeted Therapy Conjugate (ATTC) drug candidate around the end of 2025. The company stated it will leverage its strong cash resources to accelerate this global development. The prior year's R&D spend of $212.1 million for the full year 2024 included an ongoing commitment to key assets with global potential, including the next-generation ATTC platform.

Manufacturing costs and cost of goods sold for commercial products.

This is captured under Cost of Revenue, which was $167.6 million for H1 2025, a 7% decrease from $180.1 million in H1 2024, mainly due to lower Oncology/Immunology revenue. The cost of revenue as a percentage of oncology product revenue remained stable at 39% for the period.

Sales, General, and Administrative (SG&A) expenses for the China commercial team.

SG&A Expenses for the period were $41.6 million, down from $57.8 million in H1 2024. This reflects streamlining efforts, such as the streamlining of the China salesforce to establish a more efficient commercial organization and enhance productivity, as noted following intensifying competitive pressures for ELUNATE®, SULANDA®, and ORPATHYS® in China.

Costs related to regulatory filings and global market approvals.

Costs for regulatory filings are embedded within the R&D Expenses. The decrease in R&D spend in H1 2025 to $72.0 million reflects lower costs from studies already under NDA review or approved, such as the ORPATHYS® second-line NSCLC indication approved in H1 2025. Furthermore, the company has a contingent liability related to the divestment of its non-core joint venture, SHPL, where HUTCHMED guarantees a minimum net profit growth of SHPL of at least approximately 5% annually, subject to total compensation not exceeding approximately US$95 million over a three-year transition period.

Finance: draft 13-week cash view by Friday.

HUTCHMED (China) Limited (HCM) - Canvas Business Model: Revenue Streams

HUTCHMED (China) Limited (HCM) revenue streams in late 2025 are characterized by a mix of product commercialization, strategic partnerships, and significant one-time financial events.

The H1 2025 consolidated revenue reached $277.7 million. For the full year 2025, the guidance for Oncology/Immunology consolidated revenue was adjusted to a range of $270 million - $350 million.

Revenue Component (H1 2025)	Amount (USD)	Source/Context
Consolidated Revenue	$277.7 million	Six months ended June 30, 2025
Oncology/Immunology Consolidated Revenue (Total)	$143.5 million	Including milestone and service income
ELUNATE® Revenue	$33.6 million	Manufacturing revenue, promotion/marketing services, and royalties
FRUZAQLA® Revenue (ex-China)	$43.1 million	Royalties and manufacturing revenue from Takeda
ORPATHYS®/AstraZeneca Milestone Payment	$11.0 million	Triggered by China NDA approval
Other Revenue (includes milestone)	$14.9 million	H1 2025 Other revenue
One-time Gain from SHPL Divestment (Net Income Contributor)	$416.3 million	Recognized in H1 2025 net income

Product sales revenue from self-marketed drugs in China contributes significantly, though facing market pressures.

• ELUNATE® revenue for H1 2025 was $33.6 million, a decrease from $46.0 million in H1 2024.
• SULANDA® in-market sales for the full year 2024 were $49.0 million, with market share reaching 27%.

Royalties and manufacturing revenue from partnered products show global traction.

• FRUZAQLA® revenue (ex-China) was $43.1 million in H1 2025, reflecting royalty growth.
• Global in-market sales for FRUZAQLA® by Takeda reached $162.8 million in H1 2025, up 25% year-over-year.
• ORPATHYS® in-market sales in China were impacted by competition, though a new indication approval was secured on June 30, 2025.

Milestone payments from licensing agreements provide lumpy but substantial non-operating income.

• A milestone payment of $11.0 million was received from AstraZeneca in H1 2025 following the China NDA approval for ORPATHYS® combined with TAGRISSO®.
• Total Other revenue, which includes this milestone, was $14.9 million in H1 2025.

A major, non-recurring financial event boosted the period's bottom line, though not strictly operating revenue.

• A one-time gain from the partial divestment of SHPL, net of tax, contributed $416.3 million to the H1 2025 net income.
• HUTCHMED (China) Limited (HCM) reported a total net income attributable of $455.0 million for H1 2025.