According to the news from the Zhitong Finance and Economics APP, GF Securities has released a research report stating that it gives a "buy" rating to Hutchmed (China) and expects the net profit attributable to shareholders for the years of 2024-2026 to be -116 million USD, 100 million USD, and 116 million USD, respectively. The DCF method yields a fair value of 41.16 HKD per share for the company. The company's R&D, commercialization, and overseas capabilities have been preliminarily verified, and the differentiated innovative pipeline is sufficient. As various products gradually enter the harvest period, the company is expected to turn losses into profits in 2025.

GF Securities' main points are as follows:

Hutchmed (China) announced that Takeda has been granted approval by the European Commission for Frusemide.

On June 24th, Hutchmed (China) announced that its partner Takeda obtained approval from the European Commission for frusemide as a monotherapy for the treatment of adult patients with metastatic colorectal cancer who have previously received fluoropyrimidine-based, oxaliplatin-based, and irinotecan-based chemotherapy, anti-VEGF therapy, and EGFR therapy, and whose disease has progressed on or after treatment with fluoropyrimidine, oxaliplatin, or irinotecan-including regimens or who are intolerant to such therapies.

The overseas approval of Fruquintinib is accelerating, having already been approved in the USA and Europe, with a submission for marketing approval in Japan also submitted.

According to information disclosed on the Hutchmed (China) website, in January 2023, Hutchmed (China) reached an exclusive license agreement with Takeda's subsidiary for the global exclusive license to further develop, commercialize, and manufacture frusemide outside mainland China , Hong Kong and Macao. Hutchmed (China) will receive payments totaling up to $1.13 billion in addition to royalties based on net sales. According to Takeda's financial report, frusemide was approved in the United States in November 2023, and its sales reached 10.1 billion JPY (approximately 63 million USD) by the end of March 2024.

In addition, the application for the listing of frusemide in Japan was submitted in September 2023. The commercialization of colorectal cancer in China is progressing smoothly, and NDA for gastric cancer and endometrial cancer indications have also been submitted. According to the company's official website, frusemide has been listed in China and was included in the medical insurance system in January 2020. By the middle of 2023, more than 80,000 patients with colorectal cancer in China had received frusemide treatment. In addition, the applications for the listing of frusemide combined with paclitaxel for the second-line treatment of gastric cancer and frusemide combined with sintilimab for the treatment of advanced endometrial cancer were accepted in April 2023 and April 2024, respectively.

The commercialization of colorectal cancer in China is progressing smoothly, and NDA for gastric cancer and endometrial cancer indications have also been submitted.

According to the company's official website, frusemide has been listed in China and was included in the medical insurance system in January 2020. By the middle of 2023, more than 80,000 patients with colorectal cancer in China had received frusemide treatment. In addition, the applications for the listing of frusemide combined with paclitaxel for the second-line treatment of gastric cancer and frusemide combined with sintilimab for the treatment of advanced endometrial cancer were accepted in April 2023 and April 2024, respectively.

Risk warning: Drug evaluation risk, cost control policy risk, R&D progress is lower than expected.