HUTCHMED Announces Closing of Divestment of Non-Core OTC Joint Venture

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

The aggregate amount which will be received by HUTCHMED is approximately US$169 million in cash, representing about 22 times HBYS’ adjusted net profit attributable to HUTCHMED equity holders of US$7.7 million in 2020¹. Of the proceeds, approximately US$127 million related to its shareholding in HBYS has been received. The balance of approximately US$42 million is related to expected upcoming distributions of declared dividends related to previously announced land compensation and prior year undistributed profits.

The transaction will allow HUTCHMED to focus the organization and resources on its primary aim of accelerating investment in the Oncology/Immunology assets in China and beyond.

About HUTCHMED

HUTCHMED (Nasdaq/AIM: HCM; HKEX:13) is an innovative, commercial-stage, biopharmaceutical company. It is committed to the discovery and global development and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. A dedicated organization of over 1,400 personnel has advanced eleven cancer drug candidates from in-house discovery into 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 focuses primarily on the manufacture, marketing and distribution of proprietary OTC pharmaceutical products. HBYS was HUTCHMED’s non-consolidated joint venture with Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited. HUTCHMED had a 50% interest in HBYS through a holding company in which HUTCHMED had an 80% interest.

About GL Capital

GL Capital is a leading investment firm specializing in buyout and growth opportunities in China's healthcare industry. The firm has over US$2 billion under management across both public and private equity, through USD and RMB-denominated funds.