Celltrion (068270.KS) achieved its highest-ever revenue on a half-year basis, driven by sales of high-margin new products. The company expects to exceed its initial annual targets of 5.3 trillion won in revenue and 1.8 trillion won in operating profit set at the start of the year.
Celltrion reported revenue of 2.5387 trillion won and operating profit of 773.7 billion won for the first half of this year, the company said in a regulatory filing on the 27th. Revenue rose 40.77% and operating profit increased 97.42% from a year earlier. The revenue marks a record high on a half-year basis, while operating profit was the second-highest after the 776.6 billion won recorded in the second half of last year.
In detail, the company recorded revenue of 1.3937 trillion won and operating profit of 451.8 billion won in the second quarter of this year. Revenue increased 45.0% and operating profit rose 86.3% from a year earlier. Following the first quarter, the company achieved a record quarterly revenue in the second quarter, with revenue exceeding preliminary earnings released on the 3rd of this month by 93.7 billion won and operating profit by 21.8 billion won.
Celltrion explained that the growth was due to an increased share of new products in its overall product portfolio. Second-quarter sales of new products, which include Remsima SC, Yuflyma, Vegzelma, Steqeyma, Stoboclo and Osenvelt, Avtozma, Omlyclo and Eydenzelt, grew 76% from a year earlier. Their share of total biosimilar product sales expanded to 65%. The company plans to increase the sales share of new products to 70% in the second half by expanding the number of launch countries and indications. The second-quarter cost-of-goods-sold ratio was 38%, an improvement of 5.4 percentage points from a year earlier.
The company expects to exceed its initial annual targets of 5.3 trillion won in revenue and 1.8 trillion won in operating profit set at the start of the year. If it surpasses its annual targets, the company will enter the "5 trillion won revenue club" for the first time since its founding. No Korean biotech company has recorded annual revenue of 5 trillion won to date. "As the supply of tender volumes in major countries and the expansion of new products' market share begin in earnest in the second half, we expect earnings growth exceeding the first half," a Celltrion official said.
Meanwhile, Celltrion plans to build a portfolio of a total of 18 products by 2030. To this end, it is developing biosimilars including autoimmune disease treatments such as Ocrevus, Cosentyx and Taltz, and anticancer drugs such as Keytruda and Darzalex. In the new drug segment, it is also continuing to expand its portfolio in areas such as antibody-drug conjugates (ADC), multispecific antibodies and obesity treatments.
