Celltrion Posts Record 510 Billion Won Quarterly Operating Profit

Celltrion’s headquarters in Songdo, Incheon, South Korea. (Celltrion) Celltrion has surpassed 500 billion won, or approximately $373.66 million, in quarterly operating profit for the first time in its history. Expanding global sales of high-margin new products, combined with improvements in its cost structure driven by greater production efficiency, pushed both revenue and operating profit to all-time highs. On Oct. 12, Celltrion disclosed preliminary consolidated results for the third quarter, reporting revenue of 1.5 trillion won and operating profit of 510 billion won. Compared with the same period last year, revenue surged 45.8% and operating profit jumped 69.2%. Its operating profit margin reached 34%, up 4.7 percentage points year on year. The results also surpassed the management targets the company announced at the beginning of the year. Celltrion had set quarterly operating profit targets of 300 billion won for the first quarter, 400 billion won for the second quarter and more than 500 billion won for the third quarter. With the latest results, the company has exceeded its targets for three consecutive quarters. Steady growth across global markets was a key driver of the record performance. In Europe, the autoimmune disease treatment Remsima SC and the allergy treatment Omlyclo are driving growth. As of July, Omlyclo had secured a market share of more than 90% in Spain, while its share in Denmark is projected to exceed 98% by year-end following a national tender win. In the U.S. market, existing flagship products and newer products are also generating synergies. As of August, SteQeyma and Yuflyma recorded market shares of 15% and 11%, respectively, establishing a solid foothold. Existing products Truxima and Inflectra also maintained solid market shares of 39% and 31%, respectively. The direct sales network established through existing products has expanded to newer products, further strengthening Celltrion’s sales competitiveness. Celltrion plans to sustain its growth momentum in the fourth quarter, supported by new product launches in the United States. Omlyclo, an omalizumab biosimilar launched in the U.S. earlier this month, was included as a preferred drug on Optum’s commercial insurance formulary immediately upon launch. Optum is one of the three largest pharmacy benefit managers (PBMs) in the United States. Additional revenue growth is expected as reimbursement coverage begins in earnest in the fourth quarter. Expanded tender volumes in major European countries and year-end inventory stocking demand are also expected to support growth. A Celltrion representative said the company would increase the share of high-margin follow-on products and continue improving its cost structure to enhance earnings quality. The representative added that Celltrion aims to achieve its annual business targets through the U.S. launch of Omlyclo and expanded supply in Europe.