Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 295

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 1
Chunk 295
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3, which was primarily due to a decrease in sales of prescription drugs products.

Cost of revenue from Oncology/Immunology increased by 1.2% to $92.8 million for the year ended December 31, 2024 from $91.7 million for the year ended December 31, 2023, primarily due to an increase in sales of Fruzaqla and Elunate (including the provision of promotion and marketing services to Eli Lilly). Cost of revenue as a percentage of oncology product revenue improved (to 34.2% in the year ended December 31, 2024 from 55.9% in the year ended December 31, 2023) due to favorable product mix and economies of scale.

Cost of revenue as a percentage of our revenue increased to 55.4% from 45.9% across these periods, primarily due to lower revenue from upfront and milestones which do not have associated costs.

Research and Development Expenses

Our research and development expenses incurred by Oncology/Immunology decreased by 29.8% to $212.1 million for the year ended December 31, 2024 from $302.0 million for the year ended December 31, 2023, which was primarily due to a $65.9 million decrease in CRO and other clinical trial related costs and a $24.0 million decrease in personnel compensation and related costs. These decreased costs were primarily due to the strategic prioritization of our pipelines and further reorganization of our U. S. Oncology/Immunology operations in 2024. Research and development expenses as a percentage of our revenue decreased to 33.7% from 36.0% across these periods, primarily due to the aforementioned decrease in spending.

Table of Contents

Selling Expenses

Our selling expenses decreased by 8.9% to $48.6 million for the year ended December 31, 2024 from $53.4 million for the year ended December 31, 2023. This was primarily due to a $3.6 million decrease in selling expenses incurred by our Other Ventures due to lower sales. Selling expenses as a percentage of our revenue increased to 7.7% from 6.4% across these periods, primarily due to lower revenue from upfront and milestones which do not have associated expenses.

Administrative Expenses

Our administrative expenses decreased by 19.4% to $64.3 million for the year ended December 31,