HUTCHMED Announces Completion of Sale of Non-Core OTC Joint Venture

HONG KONG and FLORHAM PARK, NJ, September 29, 2021 (GLOBE NEWSWIRE) – HUTCHMED (China) Limited (“HUTCHMED“) (Nasdaq / AIM: HCM; HKEX: 13) announces today that, following its announcement in March 2021 and after receiving regulatory approval, it has completed the sale of its entire indirect stake in Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited (“HBYS”), a non-core and unconsolidated over-the-counter (“OTC”) joint venture, to GL Mountrose Investment Two Limited, a company controlled and managed by GL Capital Group (“GL Capital ”).

The total amount that will be received by HUTCHMED is approximately US $ 169 million in cash, which is approximately 22 times the adjusted net income of HBYS attributable to HUTCHMED shareholders of US $ 7.7 million in 2020¹. Of the proceeds, approximately US $ 127 million related to its stake in HBYS was received. The balance of approximately US $ 42 million relates to expected future distributions of declared dividends related to previously announced land compensation and prior year’s retained earnings.

The transaction will allow HUTCHMED to focus the organization and resources on its primary goal of accelerating investments in oncology / immunology assets in China and beyond.

About HUTCHMED

HUTCHMED (Nasdaq / AIM: HCM; HKEX: 13) is an innovative, commercial-stage biopharmaceutical company. She is engaged in the discovery, development and global commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. A dedicated organization of more than 1,400 people has advanced eleven cancer drug candidates from in-house discovery to clinical studies around the world, with its first three oncology drugs now approved and marketed. For more information, please visit: www.hutch-med.com or follow us on LinkedIn.

About HBYS

HBYS was established in 2005 and is primarily focused on the manufacture, marketing and distribution of proprietary OTC pharmaceutical products. HBYS was HUTCHMED’s unconsolidated joint venture with Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited. HUTCHMED held a 50% stake in HBYS through a holding company in which HUTCHMED held an 80% stake.

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About GL Capital

GL Capital is a leading investment firm focused on buyout and growth opportunities in the healthcare sector in China. The company manages over US $ 2 billion in public and private private equity, through funds denominated in USD and RMB.

Founded in 2010, GL Capital strives to be the partner of choice for leading healthcare companies, generate superior returns on investment and contribute to the sustainable development of the healthcare industry in China. For more information, please visit www.gl-investment.com.

Forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect HUTCHMED’s current expectations regarding future events, including its expectations regarding the future. expected amount of proceeds, expected use of proceeds and the expected closing date of the proposed transaction. Forward-looking statements involve risks and uncertainties. These risks and uncertainties include, among others, assumptions regarding the amount and timely receipt of the final land compensation, the satisfaction of the conditions precedent to the completion of the proposed transaction (including the ability of the parties to obtain regulatory approvals). under expected conditions, at all or in a timely manner), the ability of the parties to complete the proposed transaction and the impact of the COVID-19 pandemic on general economic, regulatory and political conditions. Existing and potential investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. For a more in-depth discussion of these and other risks, see documents filed by HUTCHMED with the United States Securities and Exchange Commission, on AIM, and with the Stock Exchange of Hong Kong Limited. HUTCHMED assumes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.

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¹ HBYS ‘adjusted net income attributable to HUTCHMED shareholders (after 20% of non-controlling interests) in 2020 of US $ 7.7 million is a non-GAAP measure that represents 40% of HBYS’ net income for 2020 of $ 91.3 million less the gain of $ 72.0 million on land compensation, net of tax.