HUTCHMED's Milestone: Takeda's US$10M Payment for FRUZAQLA® in Europe
AInvestThursday, Dec 12, 2024 7:06 pm ET
4min read
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HUTCHMED (China) Limited (Nasdaq/AIM:HCM; HKEX:13) has announced a significant milestone with Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) set to pay a US$10 million milestone payment following the first European reimbursement for FRUZAQLA® (fruquintinib). This development underscores the potential of FRUZAQLA® as a novel oral targeted therapy for metastatic colorectal cancer (mCRC) in the European market.

The reimbursement recommendation in Spain marks a crucial step towards broader patient access to FRUZAQLA® across Europe. With CRC being the second most common cause of cancer-related deaths in Europe, this development is particularly encouraging. The milestone payment from Takeda to HUTCHMED reflects the growing market demand and potential for FRUZAQLA® in Europe.

FRUZAQLA®, a selective oral inhibitor of all three VEGF receptors (-1, -2, and -3), has demonstrated a manageable safety profile and consistent benefit among patients treated with the drug, regardless of the prior types of therapies they received. The approval by the European Commission in June 2024, based on positive results from the Phase III FRESCO-2 trial, further underscores the drug's efficacy and potential market penetration.



As more European countries adopt similar reimbursement policies, the market demand for FRUZAQLA® is expected to grow, driving further revenue for HUTCHMED and Takeda. This development not only enhances HUTCHMED's cash flow and liquidity position but also positions FRUZAQLA® as a strong competitor in the European mCRC treatment landscape.



In conclusion, the first European reimbursement for FRUZAQLA® and the subsequent US$10 million milestone payment from Takeda to HUTCHMED signal a promising future for the drug in the European market. With a manageable safety profile and consistent benefit among patients, FRUZAQLA® is poised to gain a substantial share in the European mCRC treatment market. Investors should closely monitor the progress of FRUZAQLA® and its potential impact on HUTCHMED's financial performance.
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