HUTCHMED (China) Limited Q4 FY2020 earnings call

• Fruquintinib is on track to reach $75-80 million in revenue. - SULANDA is in early stages with $35 million expected. - Savolitinib has milestones and royalties, plus service fees from partnerships. - HMPL-689 has dosed over 120 patients in China and is enrolling patients outside, with encouraging efficacy and safety data. - ELUNATE commercial team expanded to 420+ and aims to double hospital listings. - R&D spending likely to double from 2020, with China R&D spending increasing significantly.

Fruquintinib contributed approximately $55-60 million in consolidated revenues in the first quarter, with expectations to reach $75-80 million. SULANDA is in early stages with an expected ~$35 million contribution. Savolitinib has a $25 million first sale milestone and 30% royalties on China sales, plus service fees from AstraZeneca and Lilly. These elements contribute to the $110 million to $130 million revenue range projected.

• R&D spending is expected to double from 2020 levels. - Commercial team in China to expand to 600+ by end of 2021. - Expectations for savolitinib approval in first half of 2021 and NRDL inclusion in second half. - HMPL-689 to move into registration-intense studies in China and potentially globally.

• Competition in the PD-1 landscape could impact market dynamics. - Regulatory uncertainties regarding approval timelines and reimbursement negotiations. - Potential challenges in clinical trial enrollment due to competitive dynamics in certain therapeutic areas.

Q: Could you give more color on the $110 million to $130 million revenue projection?

A: Fruquintinib is at $55-60 million, SULANDA ~$35 million, savolitinib has milestones and service fees adding up.

Q: How does HMPL-689 have competitive advantage?

A: Dosed over 120 patients in China, enrolling outside, with encouraging efficacy and safety data.

Q: How to build a globally competitive franchise in the U.S.?

A: Target high unmet medical needs, build combination efforts, and have a strong team.

Q: Color on pricing for surufatinib and savolitinib?

A: Surufatinib priced similar to fruquintinib, savolitinib reference TAGRISSO's pricing.

Q: What made the difference in ELUNATE's commercial progress?

A: Larger commercial team, better coverage, and increased hospital listings.

Q: Feedback on 689 registrational trial with USFDA?

A: Preparing discussions, encouraged by China and U.S. study signals.

Q: Update on surufatinib's U.S. NDA?

A: Rolling submission under Fast Track, progressing on track.

Q: R&D spend guidance?

A: R&D spending likely to double from 2020, China R&D to increase.

Q: Perspective on EGFR non-small cell lung cancer space and savolitinib?

A: Savolitinib is biomarker-driven, different from bispecifics in patient selection and delivery.