Revenue rose 21% to $216.1mln in the year to 31 December 2016 from $178.2mln a year earlier, as a 43% increase in commercial platform revenue offset a 32% decline in innovation platform revenue.
The commercial platform business was boosted by its consolidated joint venture Hutchison Whampoa Sinopharm Pharmaceuticals Company Ltd in Shanghai, which supplies prescription drugs.
Net income increased 46% to $11.7mln from $8.0mln, even as research and development expenses rose to $76.1mln from $55.8mln.
During the period, the company said it had accelerated and expanded work on c-MET inhibitor candidate savolitinib through an amended license deal with AstraZeneca (LON:AZN) that covers a Phase III global trial for treatment of kidney, lung and gastric cancers.
Under the amended deal with AstraZeneca in August, Chi-Med agreed to provide up to $50mln for the joint-development costs of savolitinib in return for a five percentage point increase in royalties payable on the drug’s sales across indications in all markets outside of China.
The company reported positive results from the phase III study of fruquintinib for the treatment of colorectal cancer and expects to launch the product in 2018.
Hutchison is also conducting phase I studies on multiple novel drug candidates including HMPL-523 against spleen tyrosine kinase and HMPL-453 against fibroblast growth factor receptors.
At the end of the year the group held cash resources of $173.7mln, compared to $38.8mln the prior year, which Hutchison believes is sufficient to fund its activities, including the increased cash requirements following the amendment to the savolitinib collaboration with AstraZeneca.
Shares rose 3.54% to 2,498p in morning trading.
Story by ProactiveInvestors