HUTCHMED Announces US$608 million Divestment of Non-Core Joint Venture
HUTCHMED has agreed to sell its 45% stake in Shanghai Hutchison Pharmaceuticals (SHPL) for US$608 million in cash. The sale involves two transactions: GP Health Service Capital will acquire 35% for US$473 million, and Shanghai Pharma will acquire 10% for US$135 million. HUTCHMED will retain a 5% stake in SHPL.
The divestment aligns with HUTCHMED's November 2022 strategy to focus on its core business of developing novel cancer and immunological disease therapies. The company plans to use the proceeds to advance its pipeline, including its antibody-targeted therapy conjugate (ATTC) platform, with first candidates expected to enter clinical trials in H2 2025.
HUTCHMED expects to record a gain of approximately US$477 million before taxation. The deal includes a three-year transition period where HUTCHMED will guarantee SHPL's minimum net profit growth of 5% annually. The transaction is expected to close by Q1 2025, subject to shareholder and regulatory approvals.
HUTCHMED ha concordato di vendere la sua partecipazione del 45% in Shanghai Hutchison Pharmaceuticals (SHPL) per 608 milioni di dollari USA in contante. La vendita coinvolge due transazioni: GP Health Service Capital acquisirà il 35% per 473 milioni di dollari, e Shanghai Pharma acquisirà il 10% per 135 milioni di dollari. HUTCHMED manterrà una partecipazione del 5% in SHPL.
La dismissione è in linea con la strategia di HUTCHMED di novembre 2022, mirata a concentrarsi sul suo core business nello sviluppo di nuove terapie per il cancro e le malattie immunologiche. L'azienda prevede di utilizzare i proventi per far progredire il proprio portafoglio, inclusa la piattaforma di terapia coniugata mirata agli anticorpi (ATTC), con i primi candidati attesi per entrare in sperimentazione clinica nel secondo semestre del 2025.
HUTCHMED si aspetta di registrare un guadagno di circa 477 milioni di dollari USA prima delle tasse. L'accordo include un periodo di transizione di tre anni in cui HUTCHMED garantirà una crescita minima dell'utile netto di SHPL del 5% annuo. Si prevede che la transazione si chiuda entro il primo trimestre del 2025, soggetta all'approvazione degli azionisti e delle autorità di regolamentazione.
HUTCHMED ha acordado vender su participación del 45% en Shanghai Hutchison Pharmaceuticals (SHPL) por 608 millones de dólares estadounidenses en efectivo. La venta implica dos transacciones: GP Health Service Capital adquirirá el 35% por 473 millones de dólares, y Shanghai Pharma adquirirá el 10% por 135 millones de dólares. HUTCHMED retendrá una participación del 5% en SHPL.
La desinversión se alinea con la estrategia de HUTCHMED de noviembre de 2022 para centrarse en su negocio principal de desarrollo de nuevas terapias para el cáncer y enfermedades inmunológicas. La compañía planea utilizar los ingresos para avanzar en su pipeline, incluida su plataforma de terapia conjugada dirigida por anticuerpos (ATTC), con los primeros candidatos que se espera ingresen a ensayos clínicos en la segunda mitad de 2025.
HUTCHMED espera registrar una ganancia de aproximadamente 477 millones de dólares estadounidenses antes de impuestos. El acuerdo incluye un período de transición de tres años donde HUTCHMED garantizará un crecimiento mínimo de las ganancias netas de SHPL del 5% anual. Se espera que la transacción se cierre para el primer trimestre de 2025, sujeta a la aprobación de los accionistas y regulaciones.
HUTCHMED는 상하이 허치슨 제약(SHPL)에서 45% 지분을 6억 8백만 달러에 현금으로 판매하기로 합의했습니다. 이번 매각은 두 건의 거래로 나뉘어 있으며, GP Health Service Capital은 35%를 4억 7천 3백만 달러에 인수하고, 상하이 제약은 10%를 1억 3천 5백만 달러에 인수할 것입니다. HUTCHMED는 SHPL에서 5%의 지분을 유지합니다.
이번 매각은 HUTCHMED의 2022년 11월 전략과 일치하며, 이는 새로운 암 치료제 및 면역 질환 치료제 개발에 주력하는 것입니다. 회사는 수익을 통해 항체 표적 치료제 접합체(ATTC) 플랫폼을 포함한 파이프라인을 발전시키는 데 사용할 계획이며, 첫 번째 후보는 2025년 하반기에 임상 시험에 들어갈 것으로 예상됩니다.
HUTCHMED는 세금 공제 전 약 4억 7천 7백만 달러의 이익을 기록할 것으로 기대하고 있습니다. 거래에는 HUTCHMED가 SHPL의 연간 최소 순이익 성장률을 5% 보장하는 3년의 전환 기간이 포함됩니다. 이 거래는 주주 및 규제 당국의 승인을 조건으로 2025년 1분기까지 마무리될 것으로 예상됩니다.
HUTCHMED a accepté de vendre sa participation de 45 % dans Shanghai Hutchison Pharmaceuticals (SHPL) pour 608 millions de dollars US en espèces. La vente implique deux transactions : GP Health Service Capital acquiert 35 % pour 473 millions de dollars, et Shanghai Pharma acquiert 10 % pour 135 millions de dollars. HUTCHMED conservera une participation de 5 % dans SHPL.
Cette désinvestissement s'inscrit dans la stratégie de HUTCHMED de novembre 2022, visant à se concentrer sur son cœur de métier, qui est le développement de nouvelles thérapies contre le cancer et les maladies immunologiques. L'entreprise prévoit d'utiliser les recettes pour faire avancer son pipeline, y compris sa plateforme de thérapie ciblée par anticorps (ATTC), dont les premiers candidats devraient entrer en essais cliniques au second semestre 2025.
HUTCHMED s'attend à enregistrer un bénéfice d'environ 477 millions de dollars US avant impôts. L'accord comprend une période de transition de trois ans pendant laquelle HUTCHMED garantira une croissance minimale du bénéfice net de SHPL de 5 % par an. La transaction devrait être finalisée d'ici le premier trimestre 2025, sous réserve de l'approbation des actionnaires et des régulateurs.
HUTCHMED hat zugestimmt, seinen 45% Anteil an den Shanghai Hutchison Pharmaceuticals (SHPL) für 608 Millionen US-Dollar in bar zu verkaufen. Der Verkauf umfasst zwei Transaktionen: GP Health Service Capital wird 35% für 473 Millionen US-Dollar erwerben, und Shanghai Pharma wird 10% für 135 Millionen US-Dollar erwerben. HUTCHMED wird einen 5%-Anteil an SHPL behalten.
Die Veräußering steht im Einklang mit der Strategie von HUTCHMED aus November 2022, sich auf ihr Kerngeschäft der Entwicklung neuartiger Krebs- und Immuntherapien zu konzentrieren. Das Unternehmen plant, die Einnahmen zu nutzen, um seine Pipeline voranzubringen, einschließlich der Plattform für Antikörper-gerichtete Therapiekonjugate (ATTC), wobei die ersten Kandidaten voraussichtlich im zweiten Halbjahr 2025 in klinische Studien eintreten werden.
HUTCHMED erwartet, einen Gewinn von etwa 477 Millionen US-Dollar vor Steuern zu verbuchen. Der Deal umfasst einen dreijährigen Übergangszeitraum, in dem HUTCHMED das Mindestwachstum des Nettogewinns von SHPL von 5% pro Jahr garantieren wird. Die Transaktion soll bis zum ersten Quartal 2025 abgeschlossen werden, vorbehaltlich der Genehmigungen durch die Aktionäre und die Aufsichtsbehörden.
- Sale of non-core asset for US$608 million in cash
- Expected gain of US$477 million before taxation
- Proceeds to fund core R&D activities and pipeline development
- Retention of 5% stake in SHPL maintains some exposure to future growth
- Loss of significant dividend income stream (over US$370 million historically)
- Potential liability up to US$95 million related to profit growth guarantee
- Reduction in diversification as company focuses solely on drug development
- Loss of US$47.4 million annual net income contribution from SHPL
Insights
The
The transaction's structure, including the
This move aligns perfectly with the biotech sector's current emphasis on core competency focus and capital efficiency. The proceeds will accelerate HUTCHMED's innovative medicines pipeline, particularly the ATTC platform, potentially creating higher long-term value than the steady but slower-growth traditional pharmaceutical business.
The strategic pivot toward the ATTC platform represents a significant technological advancement in targeted cancer therapy. Unlike traditional ADCs that use cytotoxins, HUTCHMED's approach of combining antibodies with targeted therapeutics offers a more sophisticated dual-mechanism strategy. The pre-clinical data suggesting robust anti-tumor activity with single administration is particularly promising.
The timing of clinical trials in H2 2025 positions HUTCHMED well in the rapidly evolving ADC market. Their extensive experience in oncogenic pathways and small molecule development provides a competitive advantage in developing these next-generation conjugates. The potential for combining ATTCs with immunotherapy and reduced toxicity profile could address key limitations of current ADC approaches.
The transaction transforms HUTCHMED's business model from a hybrid traditional/innovative pharma company to a pure-play innovative drug developer. The cardiovascular market in China, while stable, offers growth potential compared to the oncology and immunology sectors. By divesting SHPL, which has provided over
The deal structure with GP Health Service Capital (35%) and Shanghai Pharma (10%) optimally balances strategic and financial interests. Shanghai Pharma's increased stake to
— HUTCHMED continues to deliver on its strategy outlined in November 2022 to create value, prioritize its portfolio and bring innovative medicines to patients globally —
— Divestment proceeds to advance HUTCHMED’s pipeline and core innovative medicines business —
— Focused R&D investment includes HUTCHMED’s proprietary antibody-targeted therapy conjugate platform, with first candidates expected to enter clinical trials in the second half of 2025 —
HONG KONG and SHANGHAI and FLORHAM PARK, N.J., Jan. 01, 2025 (GLOBE NEWSWIRE) -- HUTCHMED (China) Limited (“HUTCHMED”) (Nasdaq/AIM:HCM; HKEX:13) announces that it has entered into two agreements to divest its
HUTCHMED will host a short update call on Tuesday, January 7, 2025. Details will be available at www.hutch-med.com/event in due course.
SHPL primarily manufactures, sells and distributes its own-brand prescription medicines in China, predominantly for cardiovascular diseases. SHPL is a 50:50 joint venture established between HUTCHMED and Shanghai Pharma in 2001. In 2023, the consolidated net income attributable to HUTCHMED from SHPL was US
HUTCHMED plans to invest the proceeds from these transactions to further develop its internal pipeline and drive its core business strategy forward. This pipeline and strategy includes its next-generation antibody drug conjugate (“ADC”) platform, which builds on HUTCHMED’s extensive knowledge from pursuing oncological pathways and proven expertise in small molecule targeted therapeutics. By combining antibodies with targeted therapeutics instead of cytotoxins, these antibody-targeted therapy conjugates (“ATTCs”) offer dual mechanisms for addressing a target. Pre-clinical research has shown robust anti-tumor activity with durable response following a single administration, and stronger anti-tumor activity compared to administration with the individual antibody and targeted therapy components, improving tolerability associated with targeted therapy. HUTCHMED plans to move the first of these ATTCs into clinical trials in the second half of 2025.
“This transaction to divest most of our holding in SHPL is another example of HUTCHMED delivering on the strategy outlined in 2022, accelerating our path to profitability and focusing on core operations. SHPL is a well-established business, having delivered over US
GP Health Service Capital is a China-based private-equity firm with no prior interest in SHPL. Prior to the transactions, HUTCHMED and Shanghai Pharma each holds a
HUTCHMED expects to record a gain on disposal of approximately US
HUTCHMED expects to convene an Extraordinary General Meeting (EGM) for its shareholders to consider and, if thought fit, to approve the transactions. The transactions are expected to close by the end of the first quarter of 2025, conditional upon the satisfaction (or, where applicable, waiver) of certain conditions including approval by HUTCHMED shareholders and regulatory approvals. Closing of both transactions are also conditional upon the simultaneous closing of each other.
Dr Weiguo Su, Chief Executive Officer and Chief Scientific Officer of HUTCHMED, said: “We continue to invest in our prolific in-house R&D platform, including our new ATTC programs that we believe have significant potential impact on the treatment of cancers. This divestment brings us additional resources and further focus.”
“Our continual approach to engineer our own innovative, highly selective drug candidates has delivered several medicines with enhanced selectivity and limited off-target activity, allowing sustained target inhibition and flexibility for use as part of combination therapies. We also gained substantial knowledge of these oncogenic pathways, and the issues involved in addressing them. In contrast to traditional cytotoxin-based ADCs, we believe that our antibody-targeted therapy synergistic approach may also be combinable with immunotherapy- or chemotherapy-based frontline standards of care, could overcome chemotherapy resistance, and could avoid cytotoxin-related toxicities that limit long-term administration. This platform also maximizes on our long history of addressing patients with genetic drivers, who benefit less from traditional ADC therapies.”
All transaction-related figures stated in US dollars (US$) are included for illustrative purposes only, and are based on an assumed exchange rate of US
About HUTCHMED
HUTCHMED (Nasdaq/AIM:HCM; HKEX:13) is an innovative, commercial-stage, biopharmaceutical company. It is committed to the discovery and global development and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. Since inception it has focused on bringing drug candidates from in-house discovery to patients around the world, with its first three medicines marketed in China, the first of which is also approved in the US, Europe and Japan. For more information, please visit: www.hutch-med.com or follow us on LinkedIn.
About Shanghai Pharma
Shanghai Pharma (www.sphchina.com) is a national integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical production and distribution markets. Shanghai Pharma’s business mainly covers two segments, namely, pharmaceutical industry and pharmaceutical business. The A shares and H shares of Shanghai Pharma are listed on the Shanghai Stock Exchange (stock code:601607) and the Hong Kong Stock Exchange (stock code:02607), respectively.
About GP Health Service Capital
GP Health Service Capital is a professional fund management company committed to industrial investment, mergers and acquisitions and integrations in the medical and health field. Its largest shareholder is GP Capital. It is incorporated under the laws of the PRC with limited liability.
Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect HUTCHMED’s current expectations regarding future events, including, without limitation, statements concerning: HUTCHMED’s future plans and prospects, its expectations as to the anticipated amount of proceeds, the intended use of proceeds, the anticipated closing date of the proposed transactions, and the therapeutic potential and clinical development of its R&D programs as well as the safety, efficacy, tolerability, scalability or combinability of all candidates under such programs. Forward-looking statements involve risks and uncertainties. Such risks and uncertainties include, among other things, assumptions regarding the amount and timely receipt of the considerations, satisfaction of the conditions precedent to the consummation of the proposed transactions (including the ability of the parties to secure regulatory approvals on the terms expected, at all or in a timely manner), the ability of the parties to complete the proposed transaction, the continued sufficiency of preclinical and clinical data to support development and approval of the R&D programs in China, in the United States and in other jurisdictions, their potential to gain clinical trial approvals from regulatory authorities, the safety profile of the R&D programs, HUTCHMED ability to fund, implement and complete its further clinical development and commercialization plans for the R&D programs, the timing of these events; actions of regulatory agencies, which may affect the initiation, timing and progress of clinical trials or the regulatory pathway for the ATTC programs; and HUTCHMED’s ability to successfully develop and commercialize the R&D programs. In addition, when or if used herein, the words and phrases “aims,” “anticipates,” “believes,” “continue,” “estimates,” “expects,” “intends,” “may,” “on track,” “predicts,” “plans,” “potential,” “promising,” “should,” “to be,” “will,” and similar expressions and their variants, as they relate to HUTCHMED may identify forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Although HUTCHMED believes the expectations reflected in such forward-looking statements are reasonable, HUTCHMED can give no assurance that such expectations will prove to be correct. Readers are cautioned that actual results, levels of activity, safety, performance or events and circumstances could differ materially from those expressed or implied HUTCHMED’s forward-looking statements due to a variety of risks and uncertainties, which include, without limitation, assumptions regarding the safety, efficacy, supply, continued regulatory approval of these therapeutics, and in some cases connected to the risks of the use of other drug products as combination therapeutics. Forward-looking statements are neither historical facts nor assurances of future performance. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. For further discussion of these and other risks, see HUTCHMED’s filings with the US Securities and Exchange Commission, The Stock Exchange of Hong Kong Limited and on AIM. HUTCHMED undertakes no obligation to update or revise the information contained in this announcement, whether as a result of new information, future events or circumstances or otherwise.
Inside Information
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in the European Union (Withdrawal) Act 2018).
CONTACTS
| Investor Enquiries | +852 2121 8200 / ir@hutch-med.com |
| Media Enquiries | |
| FTI Consulting – | +44 20 3727 1030 / HUTCHMED@fticonsulting.com |
| Ben Atwell / Alex Shaw | +44 7771 913 902 (Mobile) / +44 7779 545 055 (Mobile) |
| Brunswick – Zhou Yi | +852 9783 6894 (Mobile) / HUTCHMED@brunswickgroup.com |
| Panmure Liberum | Nominated Advisor and Joint Broker |
| Atholl Tweedie / Freddy Crossley / Rupert Dearden | +44 20 7886 2500 |
| HSBC | Joint Broker |
| Simon Alexander / Alina Vaskina / Arnav Kapoor | +44 20 7991 8888 |
| Cavendish | Joint Broker |
| Geoff Nash / Nigel Birks | +44 20 7220 0500 |
FAQ
What is the value of HUTCHMED's SHPL divestment announced in January 2025?
How much profit will HCM make from the SHPL sale?
When will HCM's ATTC candidates enter clinical trials?
What guarantees has HCM provided in the SHPL sale agreement?
When is the expected closing date for HCM's SHPL divestment?
