Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 677

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 16K
Chunk 677
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 are recognized over time using a percentage-of-completion method. Royalties are recognized as future sales occur as they meet the requirements for the sales-usage based royalty exception.
Revenue recognized under the Takeda Agreement is as follows:
Year Ended December 31,
2024 2023
───────────────────────────────────────────────────────────────────────────────────────────────────────
(in US$ ’ 000)
Manufacturing supply - Invoiced Marketed Products sales 51,378 5,053
 - Allocated from upfront payment 10,392 4,718
Services - Research and development 18,949 33,892
 - Allocated from upfront and milestone payments 25,384 28,494
Royalties - Marketed Products 39,386 2,092
Licensing - Allocated from upfront and milestone payments 32,300 278,855
177,789 353,104
License and collaboration agreement with Eli Lilly
On October 8, 2013, the Group entered into a licensing, co-development and commercialization agreement in China with Eli Lilly and Company (“ Lilly”) relating to Elunate (“ Lilly Agreement”), as the China brand name for fruquintinib. Under the terms of the Lilly Agreement, the Group is entitled to receive a series of payments up to US$86.5million, including upfront payments and development and regulatory approval milestones. Development costs after the first development milestone are shared between the Group and Lilly. Elunate was successfully commercialized in China in November 2018, and the Group receives tiered royalties in the range of15% to20% on all sales in China.

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Table of Contents

In December 2018, the Group entered into various amendments to the Lilly Agreement (the “2018 Amendment”). Under the terms of the 2018 Amendment, the Group is entitled to determine and conduct future life cycle indications (“ LCI”) development of Elunate in China beyond thethreeinitial indications specified in the Lilly Agreement and will be responsible for all associated development costs. In return, the Group will receive additional regulatory approval milestones of US$20million for each LCI approved, for up tothreeLCI or US$60million in aggregate, and will increase tiered royalties to a range of15% to29% on all Elunate sales in China upon the commercial launch of the first LCI. Additionally, through the 2018 Amendment, Lilly has provided consent, and freedom to operate, for the Group to