HUTCHMED (China) Limited Q4 FY2021 earnings call

• The company has over 4,600 personnel, with 1,500 in oncology and immunology, and a global mobile drug discovery and manufacturing operation in China. • Created 12 innovative small molecule drug candidates with over 800 R&D staff. • Currently running over 45 clinical studies globally. • 2021 was exceptional with commercial success in oncology, clinical portfolio progress, and global ambition. • Financials: Group revenues up over 50% to over $350 million, R&D investments up over 70% to around $300 million, net loss $195 million. • Building world-class leadership team, expanding oncology team, and engaging in strategic partnerships.

In 2021, ELUNATE achieved US$71 million in market sales with 111% growth versus 2020, treating over 22,000 third-line CRC new patients and having 4,800 educational events. SULANDA was launched in January 2021, achieving US$11.6 million in market sales for the first year, with about 4,800 patients treated. ORPATHYS was launched in July 2021 by AstraZeneca in China, with about US$60 million in the second half of 2021 and US$7.4 million in market sales in the first two months of 2022.

• Guidance for 2022 is $160 million to $190 million revenues from oncology business in China. • 2022 to be a transformative year with potential surufatinib approval and launch, and fruquintinib FRESCO-2 readout and potential filing. • China to have studies ongoing in 2022 and potential regulatory submissions in 2023.

• Regulatory review uncertainties for surufatinib in U.S., EU, Japan, including pending inspections. • Competition in oncology market, such as with regard to NRDL inclusion for savolitinib. • Potential challenges with virtual inspections and BMA issues during manufacturing inspections.

Q: Could you talk about choosing toripalimab for the SURTORI-02 study versus other PD-1s and combination strategies?

A: SURTORI-02 is a registration study planned for this year. Combination with tisle is in exploratory stage. PD-1s are a win of opportunity, but going forward, preference is to combine with own products.

Q: Why the immediate change in CEO with no longer transition period?

A: Personal family responsibility led to informing the Board five months ago. Weiguo has been deeply involved in the business over 16 years, no need for extended transition as I'll be a strategic adviser.

Q: Thoughts on global sales potential of oncology portfolio and capital allocation?

A: Global sales potential based on patient populations and targeted therapies. Capital allocation to R&D, manufacturing, and organization expansion.

Q: Color on surufatinib FDA review process, inspections, and label?

A: Regulatory review is long and complex. Pending inspections, but FDA prefers physical inspections. Labeling pending based on SANET-p and SANET-ep studies.

Q: Impact of fruquintinib Phase I data on FRESCO-2 trial and U.S. commercial buildup?

A: Phase I data is encouraging but doesn't change FRESCO-2 timeline. U.S. commercial team building with 54+ personnel and expanding for launch.