March 3, 2020

Consolidated financial results of the Group are reported under U.S. generally accepted accounting principles (“U.S. GAAP”) and in U.S. dollar currency unless otherwise stated. Chi-Med also conducts its business through three non-consolidated joint ventures, which are accounted for under the equity accounting method as non-consolidated entities in our consolidated financial statements. Within this announcement, certain financial results reported by such non-consolidated joint ventures are referred to, which are based on figures reported in their respective consolidated financial statements prepared pursuant to International Financial Reporting Standards (as issued by the International Accounting Standards Board). Unless otherwise indicated, references to “subsidiaries” mean the consolidated subsidiaries and joint ventures (excluding non-consolidated joint ventures) of Chi-Med.

OVERALL GROUP:   

• Group revenue of $204.9 million  (2018: $214.1m).
• Net loss attributable to Chi-Med of $106.0 million  (2018: net loss of $74.8m).
• Adjusted Group net cash flows excluding financing activities was -$82.3 million  (2018: -$49.1m). Cash from our Commercial Platform, as well as cash received from our multi-national partners, continued to offset a material portion of our R&D expenses.
• Recent Nasdaq follow-on strengthens cash position. We held cash, cash equivalents and short-term investments of $217.2 million as of December 31, 2019  (December 31, 2018: $301.0m). In January 2020, we conducted a Nasdaq follow-on offering, raising an additional $110.1 million in net proceeds, to further strengthen our cash position; and
• Additional unutilized bank facilities of $119.3 million  (December 31, 2018: $119.3m) and borrowings of $26.8 million  (December 31, 2018: $26.7m).

INNOVATION PLATFORM:

• Consolidated revenue was $16.0 million  (2018: $37.6m) mainly from service fee payments from AstraZeneca and Lilly. 2018 revenues included a one-time $13.5 million milestone payment from Lilly following fruquintinib approval; and
• Net loss from our Innovation Platform attributable to Chi-Med of $133.2 million  (2018: net loss of $104.4m) resulting from expansion in the development of our eight clinical drug candidates, five of which are now in global development, and establishment of sizable international clinical and regulatory operations.

COMMERCIAL PLATFORM:

• Total consolidated sales up 7%  (11% at CER) to $188.9 million  (2018: $176.5m) mainly due to continued progress on our Prescription Drugs subsidiary Hutchison Sinopharm as well as manufacturing sales and royalties from Elunate^® during its first full year on the market;
• Total consolidated net income from our Commercial Platform attributable to Chi-Med up 9%  (13% at CER) to $47.4 million  (2018: $43.4m) underpinned by the growing profits of our legacy operations in China as well as Elunate^®.