Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 123

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 1
Chunk 123
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 (2023: $309.4m). Consolidated net income attributable to HUTCHMED from our Other Ventures decreased by 5% to $47.7 million (2023: $50.3m) due to disposal of interests in consumer products business in December 2023, lower COVID-related prescription drug distribution sales and fluctuation in net income contributed from Shanghai Hutchison Pharmaceuticals.

Distribution Business (a 51%-held joint venture with Sinopharm): Revenue from the provision of services to third-party pharmaceutical companies in China decreased by 11% to $262.8 million (2023: $295.4m), primarily as a result of lower COVID-related prescription drug distribution sales in 2024. This excluded commercial services provided for our own products.

Shanghai Hutchison Pharmaceuticals (a non-consolidated joint venture with Shanghai Pharmaceuticals): Sales of this own-brand prescription drugs business increased by 2% to $393.5 million (2023: $385.5m) as volume growth offset price reduction in preparation for potential national implementation of volume-based procurement. Our share of equity in earnings of equity investee slightly decreased by 2% to $46.5 million (2023: $47.4m) mainly due to an increase in clinical trial investment for new products. Shanghai Hutchison Pharmaceuticals’ main product is MUSKARDIA® (also known as She Xiang Bao Xin or SXBX pill), an oral vasodilator prescription therapy for coronary artery disease and the largest botanical prescription drug in this indication in China. Sales increased by 4% to $362.3 million in 2024 (2023: $348.6m). MUSKARDIA® is fully reimbursed in all of China.

Shanghai Hutchison Pharmaceuticals 45% Disposal: We had been exploring opportunities to unlock the underlying value of Shanghai Hutchison Pharmaceuticals and focus resources on our global innovative drug discovery and development businesses. On December 31, 2024, we entered into two share purchase agreements to divest our 45% equity interest in Shanghai Hutchison Pharmaceuticals for approximately $608 million in cash, to GP Health Service Capital Co., Ltd. (“ GP Health”) for a 35% equity interest in Shanghai Hutchison Pharmaceuticals (“ GP Health Sale Shares”) and Shanghai Pharmaceuticals for a 10% equity interest in Shanghai Hutchison Pharmaceuticals. Subsequently, pursuant to the share purchase agreement, GP Health designated and we entered into share purchase agreements with GP Zhicheng Private Equity and Shanghai Z