Celltrion (068270.KS) posted its best-ever first-quarter earnings, driven by strong global sales of its new biosimilar products.
Celltrion announced in a preliminary regulatory filing Tuesday that first-quarter consolidated revenue reached 1.145 trillion won ($840 million), while operating profit came in at 321.9 billion won ($236 million), up 36.0% and 115.4% from a year earlier, respectively. The operating margin stood at 28.1%.
The improved results were driven by expanded sales of biosimilar products launched last year in the European and U.S. markets. Combined first-quarter revenue from five new products reached 581.2 billion won, up 67% from the same period last year. In particular, "Omlyclo," a treatment for allergic diseases, captured market shares of 98% in Denmark, 80% in Spain and 70% in the Netherlands within about four months of its European launch in September last year. "Zymfentra," the world's only subcutaneous (SC) formulation of infliximab, is recording its highest-ever monthly prescription volume in the United States, while "Steqeyma," an autoimmune disease treatment, achieved a market share of more than 10% as of March this year.
Earnings growth is expected to become more pronounced in the second half of the year. Given the nature of the biosimilar industry in which Celltrion specializes, tenders in major European countries are typically concentrated in the second and third quarters, with initial volume supplies following the tender results taking place in the second half. Inventory stocking demand from medical institutions also tends to increase toward year-end.
Expanding the sales geography of new products and plans for product development and commercialization are additional factors boosting earnings expectations. The SC formulation of "Avtozma," an autoimmune disease treatment, and Omlyclo are scheduled for U.S. market launches this year. Celltrion also plans to expand its biosimilar portfolio from the current 11 products to 18 by 2030 and to 41 by 2038. The company aims to expand its new drug pipeline to about 20 projects by 2027, centered on bispecific antibodies and obesity treatments.
Market observers say Celltrion could exceed its annual targets of 5.3 trillion won in revenue and 1.8 trillion won in operating profit set for this year. "Achieving significant year-on-year growth in the first quarter, which is a seasonal off-peak period, reflects the full-fledged market entry of our high-margin product lineup," a Celltrion official said. "With prescriptions and tender wins for new products expanding, we expect earnings growth to continue going forward."
Separately, Celltrion's board of directors decided Tuesday to cancel all of the approximately 100 billion won worth of treasury shares it recently acquired. The move follows the cancellation of about 1.8 trillion won in treasury shares last month, continuing its shareholder return measures.
