Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 537

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 5
Chunk 537
---
” 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
--------------------------------------------------------------------------------------------------------------
​

●   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 33.7% of our total consolidated revenue for the respective period. These research and development figures do not include payments made by our collaboration partners directly to third parties to help fund the research and development of our drug candidates.
We have been able to fund the research and development expenses for our Oncology/Immunology operations via a range of sources, including revenue generated from our commercialized drugs, payments received from our collaboration partners, cash flows generated from our Other Ventures including dividend payments and divestment proceeds, the proceeds raised from our initial public offering and follow-on offerings on the AIM, Nasdaq and the SEHK, investments from other third parties and bank borrowings.
This diversified approach to funding allows us to not depend on any one method of funding for our research and development activities, thereby reducing the risk that sufficient financing will be unavailable as we continue to accelerate the development of our drug candidates.
For more information on the research and development expenses incurred for the development of our drug candidates, see “—Key Components of Results of Operations—Cost of Revenue and Operating Expenses—Research and Development Expenses.”
Our Ability to Commercialize Our Drug Candidates
Our ability to generate revenue from our drug candidates depends on our ability to successfully complete clinical trials for our drug candidates and obtain regulatory approvals for them in