Hutchmed Eyes 36% Upside as CICC Lifts Profit Forecast 59%

CICC Boosts Hutchmed's 2026 Profit Forecast by 59%

In a research report published on March 12, 2026, CICC maintained its "Outperform" rating for Hutchmed, holding its price target at HK$30. This target represents a potential 36.5% upside from the current share price. The bank upgraded its 2026 net profit forecast for the company by a substantial 59% to $55.39 million, citing improving operational efficiency and profitability. CICC also introduced a 2027 net profit forecast of $88.91 million, underscoring a positive long-term outlook.

The updated analysis followed Hutchmed's 2025 financial results, which showed total revenue of $549 million, a 13% decrease year-over-year. However, after adjusting for a one-time asset sale, the company's underlying net profit was approximately $41 million, meeting the bank's expectations. Hutchmed's own guidance for 2026 projects oncology and immunology revenue between $330 million and $450 million, slightly exceeding CICC's forecast due to potentially higher-than-expected R&D income.

FRUZAQLA's Overseas Sales Grew 26% to $362M

Strong international commercial performance is the primary driver of Hutchmed's growth. In 2025, the company's flagship oncology product, FRUZAQLA, generated overseas sales of $362 million, a 26% increase from the prior year. This expansion, particularly in European and Japanese markets, successfully counteracted the impact of Medicare price reductions in the United States.

In contrast, domestic sales of the drug, marketed as ELUNATE in China, declined 13% year-over-year to $100 million. Despite the annual drop, a positive trend emerged in the second half of 2025, with sales growing 33% compared to the first half. This rebound suggests that a recent restructuring of the company's commercial team in China is beginning to yield positive results.

Key Savolitinib Trial Data Expected in H2 2026

Hutchmed's clinical pipeline contains several key catalysts expected in the near term. The company anticipates releasing data from the global SAFFRON registration trial for Savolitinib in the second half of 2026. Positive results from this study are critical to support a future marketing application in the United States. Another study for the drug, SANOVO, is also expected to produce data within the next 12 months.

Beyond Savolitinib, the company is advancing other assets. Its application for Sovleplenib to treat immune thrombocytopenia (ITP) in China was accepted in February 2026, and a filing for its use in treating warm antibody autoimmune hemolytic anemia (wAIHA) is planned for the first half of 2026. The company also announced it will seek a major international partner in 2026 to co-develop its novel ATTC platform, a move that could unlock significant commercial value and support its optimistic financial guidance.