Market News

Hutchmed Soars on Drug Deal with Takeda

On Monday, Hutchmed China (HCM) announced that Takeda (NYSE: TAK) has acquired exclusive development, commercialization and manufacturing rights to HCM’s fruquintinib outside of mainland China, Hong Kong and Macau. Fruquintinib is orally administered and can be used in the treatment of colorectal cancer.

As a part of this agreement, Hutchmed will receive $400 million as upfront payment and up to $1.13 billion on closing of this agreement including “potential regulatory, development and commercial sales milestone payments, plus royalties on net sales.”

Shares of Hutchmed soared by more than 8% following this announcement.

Hutchmed plans to complete the marketing authorization submissions in the U.S., Europe and Japan this year.

HCM stock has not fared well in the past year, tanking by more than 35%.

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