Hutchmed China losses widen as it appoints new CEO

Hutchmed China reported a 56% increase in total revenues in its full-year results on Thursday, to $356.1m (£266.17m), although its losses widened, as it announced the departure of its chief executive officer and the appointment of his replacement.

The AIM-traded firm said its revenue growth was driven by commercial progress on its three in-house developed oncology drugs ‘Elunate’, ‘Sulanda’ and ‘Orpathys’.

It recorded full-year oncology and immunology consolidated revenues of $119.6m, up 296% year-on-year and in line with guidance for between $110m and $130m.

Hutchmed said its net loss for the year ended 31 December was $194.6m, widening from $125.7m in 2020.

As a result, net losses per share came in at 25 US cents, or $1.23 per American depositary share, widening from 18 cents and 90 cents in 2020, respectively.

"2021 was an exceptional year for Hutchmed," said chairman Simon To.

“Commercial success on Elunate and the launches of Sulanda and Orpathys contributed to an almost four-fold increase in consolidated oncology and immunology revenues, with momentum continuing in 2022.”

To said that, with a “strong track record” in bringing drugs to patients through clinical trials, its clinical team was now enrolling 13 registration studies for six assets, with an additional five registration studies set to begin in 2022.

“With over $1bn in cash, and the intention to divest further non-core assets, we anticipate having sufficient runway to see our plans through.

“Our strategy is to launch a stream of new products in both the China and global markets over the coming years, helping patients with unmet needs and creating value for all our stakeholders.”

In a separate announcement on Thursday, Hutchmed said Christian Hogg was retiring after almost 22 years with the company, including 15 years as its executive director and CEO.

The company said Dr Weiguo Su, who had been with the firm for around 17 years, including 10 years as its chief scientific officer and almost five as an executive director, would be its new CEO.

“Christian was the first employee of Hutchmed 22 years ago, and he has worked tirelessly to build the company from its very beginning into the truly globally-facing biopharmaceutical company it is today,” said Simon To.

“Christian will remain as a strategic advisor to the Company, with an emphasis on organisational development, relations with our partners, global commercialization strategy and investor relations matters.

“On behalf of the board, I would like to congratulate Dr Su on his appointment to CEO of Hutchmed, and wish him great success in this well-deserved appointment.”

At 1418 GMT, shares in Hutchmed China were down 2.64% at 387.5p.