HUTCHMED Divests 45% Stake in Shanghai Hutchison Pharmaceuticals for $608 Million to Focus on Core Oncology Pipeline

Divestment Agreement:
HUTCHMED has signed agreements to sell its 45% equity stake in Shanghai Hutchison Pharmaceuticals (SHPL) for approximately $608 million in cash to GP Health Service Capital and Shanghai Pharmaceuticals1 2 3.

Transaction Structure:
GP Health Service Capital will acquire 35% of SHPL for $473 million, and Shanghai Pharma will purchase 10% for $135 million, increasing its ownership to 60%. HUTCHMED will retain a 5% stake in SHPL1 3 4.

Expected Profit:
HUTCHMED anticipates generating $477 million in profit from the sale, subject to withholding taxes1 3 4.

Strategic Focus:
The divestment aligns with HUTCHMED’s strategy to focus on its core business of discovering, developing, and commercializing novel therapies for cancers and immunological diseases, particularly advancing its next-generation antibody-targeted therapy conjugate (ATTC) programs2 3 5.

Future Plans:
HUTCHMED plans to invest the proceeds from the transaction to further develop its internal pipeline and advance its core business strategy, aiming to begin clinical trials for its first ATTC in the second half of 20251 3 4.

Transition Period:
A three-year transition period will follow the transaction, during which HUTCHMED will continue to propose the General Manager for SHPL and ensure the company’s net profit grows by at least 5% annually. In return, HUTCHMED will receive up to $95 million over three years1 3.