Benzinga | Jul 13, 2021 06:50AM EDT

Hutchmed Gets $25M In Sales Milestone Payment For Orpathys From AstraZeneca

* Hutchmed (China) Limited (NASDAQ:HCM) announces the first commercial sale in China of Orpathys (savolitinib), a selective small-molecule inhibitor of MET, a receptor tyrosine kinase.

* It follows less than three weeks after the approval of Orpathys in China to treat patients with locally advanced or metastatic non-small cell lung cancer with MET exon 14 skipping alterations, who have progressed following prior systemic therapy or are unable to receive chemotherapy.

* The event has triggered a $25 million milestone payment under the terms of the license and collaboration agreement between Hutchmed and AstraZeneca Plc (NASDAQ:AZN).

* Hutchmed is responsible for the clinical development, marketing authorization, manufacturing, and supply of Orpathys in China,

* AstraZeneca is responsible for commercialization, in return for fixed royalties of 30% based on all China sales.

* Price Action: HCM shares closed at $37.46 on Monday.