HUTCHMED records US$360.8 million annual loss by slow returns on drug investments
- By: Nga Ying LAU、Ho Yi CHEUNGEdited by: Lok Yi CHU、Bella Ding
HUTCHMED (China) Ltd (0013), a Hong Kong-based biopharmaceutical company, released its 2022 full-year results today, recording a net loss of US$360.8 million (about HK$2.8 billion) amid slow returns on drug investment.
The operating loss climbed 24.2% to US$407.7 million (about HK$3.2 billion) affected by the increased input in research and development, driving the net loss up US$166.2 million (about HK$1.3 billion), or 85 %, year-over-year.
“Our oncology and immunology operations have not generated profits and have operated at a net loss, as creating potential global first-in-class or best-in-class drug candidates requires a significant investment of resources over a prolonged period of time,” said Simon To Chi-keung, the Chairman of HUTCHMED, in the full-year results.
Clinical studies and the development process of drugs were hampered in 2022 by hospital closures, travel restrictions and shipping difficulties resulting from COVID-19, according to the full-year results.
The company’s revenue advanced by 19.7%, or US$70.3 million (about HK$548.3 million), to US$426.4 million (about HK$3.33 billion) in 2022, benefiting primarily from the sales of marketed products in its main businesses of oncology and immunology. It was then offset by the surge in research and development expenses of US$87.8 million (about HK$684.8 million) within the year.
HUTCHMED announced its annual results after the market closed. Its stock price, increased by 2.4%, closed at HK$ 25.85 Tuesday. However, HUTCHMED’s stock price dropped 15% in February.
“The significant return would not appear until the final stage of the drug development, which is concerned by shareholders,” said Alvin Cheung Chi-wai, the stock commentator at Prudential Brokerage Limited.
HUTCHMED is developing another six anti-tumour drugs in early clinical trials and plans to enter registrational trials in 2023 and early 2024, while the company also reached a US$1.1 billion (about HK$8.6 billion) deal with Japan’s Takeda Pharmaceutical to license its colon cancer drug, fruquintinib, in oversea markets last month.
To said that the expected proceeds from the deal with Takeda Pharmaceutical would extend the company’s cash runaway and better serve its business expansion in China.
The company also expected the revenue will reach US$450 million (about HK$3.5 billion) to US$550 million (about HK$4.3 billion) from the combined oncology and immunology business in 2023.
《The Young Reporter》
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