HUTCHMED (China) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 31, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to HUTCHMED 2023 Half Year Financial Results Presentation. [Operator Instructions].

I'd now like to hand the conference over to Mr. Mark Lee, Senior Vice President, Corporate Finance and Development of HUTCHMED. Please go ahead, sir.

Mark Lee

Thank you, Amber. Thank you, everybody, and welcome. At this time, I will remind you that the statements we have are forward-looking in nature and the results and operations of the HUTCHMED Group are historical in past performance. There's no guarantee of future results and that this presentation is intended for investors only and should be read in conjunction with the announcement we just made regarding the results for the 6 months ended June 30, 2023, and our various other filings in annual reports.

Now I'll hand you over to Dr. Wei-Guo Su, our Chief Executive Officer and Chief Science Officer.

Wei-Guo Su

Thank you, Mark. Good evening, good morning, everyone. Welcome to HUTCHMED First Half 2023 Results Conference Call.

Next slide, please. Well, during the first half 2023, we focused on executing on our strategy for the long-term growth and also reaching profitability by 2025 goal, including China commercial growth and spending control. We also delivered on our key objectives with our pipeline, highlighted by fruquintinib U.S. NDA and EU MAA submissions, an advancement of multiple programs into pivotal registration studies, including savolitinib second-line gastric and also HMPL-453, our selective FGFR1, 2 and 3 inhibitor in second-line cholangiocarcinoma.

Fruquintinib U.S. NDA was granted priority reviews designation with a PDUFA date of November 30, 2023. That means the potential approval before the end of 2023. We are working with our partner, Takeda, closely to prepare for the launch in the U.S. China commercial of the 3 approved oncology products continued to grow in spite of the pandemic outbreak at the beginning of the year.

Next slide. Today, I'm joined by the HUTCHMED senior management team. Johnny Cheng will lead off with a financial update. Johnny, over to you.

Johnny Cheng

Thank you, Dr. Su. And may I turn to Page 5, please. Yes. Okay, a quick review of our balance sheet. Two points I would like to highlight here. One is that we have a strong cash position of over $850 million, mainly contributed by the $400 upfront payment from Takeda. Secondly, we have completed the construction of our Shanghai Factory, of which we have utilized the banking facilities supported by the local authorities. This results a loan balance of about $14 million at favorable interest rate of around 3.5%, which is much lower than our deposits rate from the cash debt that we have on hand.