Zhītōng Cáijīng APP learned that Open Source Securities issued a research report stating that it initiated coverage of Hutchmed (China) (00013) and gave a “buy” rating. The forecasted net income for the 2024-2026 period was -648 million/18 million/1.131 billion yuan, respectively. Hutchmed’s Fruquintinib was approved for sale in the United States in 2023, with Takeda Pharmaceutical responsible for its commercial sales in overseas markets. Over the next few years, multiple indications for multiple product pipelines are expected to gradually be approved in global markets, and the company has already entered a period of global harvest. The bank is bullish on the company's long-term development, and based on already approved and expected pipeline sales calculations, the pipeline's peak sales are estimated to be 24.061 billion yuan, with corresponding equity earnings of 8.749 billion yuan.
The major viewpoints of Open source Securities are as follows:
Fruquintinib opened the US market ahead of its peers and the solid tumor field has entered a period of global harvest.
Fruquintinib has been approved in China for third-line treatment of colorectal cancer and has strongly occupied the Chinese market due to its efficacy. Applications for marketing authorization for combination chemotherapy or immunotherapy for gastric cancer and endometrial cancer were also accepted by the Center for Drug Evaluation (CDE) in 2023 and 2024, respectively. Since its approval by the FDA in November 2023, Fruquintinib has quickly gained market momentum in the United States, and the company has simultaneously submitted applications for marketing authorization in Europe and Japan. Fruquintinib has entered a period of global harvest.
Savolitinib was approved for second-line treatment of patients with MET mutation NSCLC in 2021, making it the first approved MET inhibitor in China. First-line treatment regimens were accepted by the CDE in 2024. Applications for NDA for the treatment of EGFRTKI-resistant NSCLC patients with Savolitinib in combination with Osimertinib are expected to be submitted to the FDA and CDE in 2024 and 2025, respectively. Savolitinib may become the company's second drug approved overseas.
The company has a comprehensive layout in hematologic malignancies, with its first-line therapy has already been accepted by the CDE.
The company covers various subtypes of hematological malignancies, and the hematologic malignancies pipeline is about to enter a period of intensive approval. Among them, the application for the marketing authorization of the SYK inhibitor Soplindipine was accepted by the CDE in January 2024, making it China's first applied-to-market SYK inhibitor. The EZH2 inhibitor Tazisetat will be rapidly applied for marketing authorization through bridging trials. HMPL-306 has initiated registration Phase III clinical trials for relapsed/refractory acute myeloid leukemia.
Risk warning: Failure of clinical drug development, drug safety risks, loss of core personnel, and deterioration of industry competition.