Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 276

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 1
Chunk 276
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 prepared in accordance with IFRS as issued by the IASB and audited under auditing standards generally accepted in the United States and included elsewhere in this annual report. The presentation of financial data for our business units excludes certain unallocated costs attributed to expenses incurred by our corporate head office. For more information on our corporate structure, see Item 4. A. “ History and Development of the Company.”

Factors Affecting our Results of Operations

Research and Development Expenses

We believe our ability to successfully develop innovative drug candidates through our Oncology/Immunology operations will be the primary factor affecting our long-term competitiveness, as well as our future growth and development. Creating high quality global first-in-class or best-in-class drug candidates requires significant investment of resources over a prolonged period of time, and a core part of our strategy is to continue making sustained investments in this area. As a result of this commitment, our pipeline of drug candidates has been steadily advancing and expanding, with 13 in active clinical development. In addition, we are proactively making a strategic shift to focus on the most advanced assets from our internal developed pipeline, that are most likely to drive near-term value. For more information on the nature of the efforts and steps necessary to develop our drug candidates, see Item 4. B. “ Business Overview - Our Clinical Pipeline” and “ Business Overview - Regulations.”

The drug candidates of our Oncology/Immunology operations are still in development, and we have incurred and will continue to incur significant research and development costs for pre-clinical studies and clinical trials. We expect that our research and development expenses will significantly increase in future periods in line with the advancement and expansion of the development of our drug candidates.

Research and development expenses include:

  employee compensation related expenses, including salaries, benefits and equity compensation expense;  

  expenses incurred for payments to CROs, investigators and clinical trial sites that conduct our clinical studies;  

  the cost of acquiring, developing, and manufacturing clinical study materials;  

  facilities, depreciation, and other expenses, which include office leases and other overhead expenses; and  

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  costs associated with pre-clinical activities and regulatory operations.  

Research and development expenses incurred by our Oncology/Immunology operations totaled $386.9 million, $302.0 million and $212.1 million for the years ended December 31, 2022, 2023 and 2024, respectively, representing approximately 90.7%, 36.0% and