HUTCHMED (China) Limited Q4 FY2025 earnings call

• Highlights of 2025 achievements: ExChina Fuseca sales 26% growth to $366 million, rolled out to over 38 countries; China sales rebounded in second half with 21% growth; cash position $1.4 billion to accelerate global ATTC development; advanced two ATTC programs into clinic; pursuing potential business development opportunities. - Financial review 2025: Total Oncology revenue $286 million, including $71 million R&D-related upfront and milestone revenues; net income $457 million mainly due to HHPL divestment gain of $460 million, core operations profitable excluding one-time gain; R&D expenses $148 million, lower as late stage trials in completion stage. - 2026 outlook: Oncology revenue guidance $330 - $450 million, driven by China commercial products growth, new indications, global expansions, and potential partnership opportunities for new drug candidates. - China commercial overview: Fuseca's 26% growth in 2025 with second half acceleration due to market expansion; China Elunet's performance in first half and rebound in second half; Opacities and Surrender's performance and progress. - R&D pipeline progress: Oncology: salvalinib reached critical milestones, Saqi approved, Sanova and Safran completed phase three enrollment and filed NDA; Hematology: sublopalinib resubmitted NDA, ATTC platform with 8251 and 580 in clinic; other pipeline progresses like fluoroquinib, ferrogradnib, sulfanib in phase three.

Total Oncology revenue was $286 million, including $71 million R&D-related upfront and milestone revenues. Oncology products revenue had a rebound from China Oncology products with 21% growth in in-market sales in the second half. ExChina Fuseca sales had 26% growth versus last year, resulting in $366 million in in-market sales and has rolled out to over 38 countries. China sales rebounded in the second half with 21% in-market sales growth versus first half. R&D expenses for 2025 was $148 million, lower as late stage trials are in completion stage. Cash position was about $1.4 billion. 2026 oncology revenue guidance is in the range of $330 million to $450 million. China commercial: Fuseca had 26% growth in 2025 with second half acceleration due to market expansion; China Elunet had -13% growth in first half but 33% growth in second half; Opacities and Surrender had soft performance due to competition but some progress like Opacities adding first-line metascapine to NRDL and Surrender maintaining market leader position in TK markets and renewing NIDL with no price cut. Hematology portfolio: First medicine for EZH2 mutant follicular lymphoma approved in China, TASVERIC in China's commercial insurance drug list, sort of minibar to launch early 2027, ITP resubmitted, Y-high indication potentially submitting in first half of 2026, and additional pipeline in hematology.

2026 oncology revenue guidance is in the range of $330 million to $450 million, reflecting strong growth from 2025 driven by China commercial products growth, new indications, global expansions, and potential partnership opportunities for new drug candidates.

Q: Regarding oncology guidance in 2026, elaboration on key drug sales modeling; Saffron's readout delay; ATTC platform indication of first two candidates into clinics.

A: For guidance, 2025 had product sales decline but second half recovery expected to continue in 2026 with new indications and global expansions contributing; Saffron's readout expected in mid-2026; 8251 is enrolling HER2-expressing solid tumor patients not restricted to post-INHER2 patients.

Q: On Saffron readout location of medical meeting vs company event; ATTC initial clinical data patient number and scope; commercial dynamics in first half headwinds and 2026 stabilization.

A: Saffron readout data to be shared as soon as AZ informs results; ATTC trial at early stage with no definitive data readout timeline; commercial headwinds in first half due to gc setback, Salesforce reorg, but turnover rate reduced, vacancy filled, momentum carrying over to 2026.

Q: On sorofatinib partner strategy; R&D guidance in 2026; R&D cash position and in-license/M&A plans.

A: No intention to partner sorofatinib program currently; R&D expenses to ramp up to 250 - 300 million; cash position $1.4 billion, open to in-license and M&A for late stage commercial assets or complementary portfolio assets but no fixed target.

Q: On move into hematology products and sales/marketing infrastructure changes; impact of US Medicare Part D changes on 2026 sales.

A: Hematology has dedicated sales, marketing, and medical capability team and will expand with future pipeline; US Medicare Part D changes impact factored into 2025, still expect US to grow with ex-US expansion and NRDL expansion in other countries.

Q: On revenue guidance breakdown between oncology product sales and R&D milestones payment; thought on appointment of permanent CEO.

A: No guidance on particular items within revenue guidance, guidance reflects solid growth from 2025 with organic growth, new indications, and potential licensing; company has interim arrangement with Dr. Xu focusing on health, management team running smoothly.

Q: On savalitinib ticarizzocevalitinib combination sequencing and guidelines.

A: Savalitinib provides oral, two oral products for EGFR-resistant meta-amplification patients, depends on doctor's perception regarding treatment paradigm shifts like precision medicine and testing.