Hutchmed to receive $10m milestone payment from partner Takeda

(Sharecast News) - Hutchmed China announced on Friday that it would receive a $10m milestone payment from its partner Takeda, following a national reimbursement recommendation for 'Fruzaqla', or fruquintinib, in Spain. The AIM-traded company said the recommendation was the first of its kind for the treatment of previously treated metastatic colorectal cancer (CRC) in Europe.

CRC is the second leading cause of cancer-related deaths on the continent.

Fruzaqla was approved by the European Commission in June, with the recommendation based on data from the phase three multiregional FRESCO-2 trial, the results of which were published in the Lancet in June 2023.

Takeda holds the exclusive worldwide license for the development, commercialization, and manufacturing of fruquintinib outside mainland China, Hong Kong, and Macau.

The drug had seen a series of regulatory successes globally, with approvals in the United States in November 2023, followed by the EU, Switzerland, Canada, Japan, the United Kingdom, and other countries throughout 2024.

Regulatory applications remained underway in several additional jurisdictions.

"We are delighted for both our partner, Takeda, and patients in Spain who will now be able to receive reimbursement for this innovative treatment," said chief executive and chief scientific officer Dr Weiguo Su.

"This is an important step forward in improving patient access across Europe more broadly.

"It also underscores our ongoing collaboration with Takeda and reinforces our shared commitment to addressing the needs of patients with metastatic colorectal cancer."

At 0919 GMT, shares in Hutchmed China were up 0.38% at 251.95p.

Reporting by Josh White for Sharecast.com.