Celltrion (068270.KS) posted its highest quarterly earnings on record, driven by expanding sales of high-margin biosimilars. Quarterly operating profit topped 500 billion won for the first time since the company was founded.
Celltrion said on the 12th that third-quarter revenue reached 1.5 trillion won ($1.1 billion) and operating profit 510 billion won ($358 million) on a consolidated basis. Revenue rose 45.8% and operating profit 69.2% from a year earlier. The operating margin came to 34%, up 4.7 percentage points from the same period last year.
The improvement reflects a larger share of revenue from higher-margin follow-on biosimilars. More efficient production and a better cost structure also supported profitability.
In Europe, prescriptions and tender wins expanded across the follow-on lineup, led by Remsima SC, a treatment for autoimmune diseases, and Omlyclo, a treatment for allergic conditions. Omlyclo, sold in 26 European countries, held a market share of more than 90% in Spain as of July. In Denmark, the company expects to reach a share of more than 98% by the end of the year on the back of a national tender win.
Sales are also growing in the U.S. across both older and newer products. Steqeyma and Yuflyma, both treatments for autoimmune diseases, held market shares of 15% and 11% respectively in August. Truxima, a blood cancer treatment, and Inflectra, the U.S. brand name for Remsima, maintained shares of 39% and 31% respectively. Analysts say the direct sales and marketing network built around the company's earlier products is helping the newer ones gain ground.
Celltrion plans to sustain growth in the fourth quarter through wider global sales. In Europe, tenders and supply schedules in major markets are concentrated in the second half, and year-end inventory demand is expected to rise. A rising share of sales from higher-margin follow-on products should also support profit growth.
Omlyclo, launched in the U.S. earlier this month, is seen as another growth driver. On launch, it was listed as a preferred drug on the private insurance formulary of Optum, one of the three largest U.S. pharmacy benefit managers. Reimbursement is set to take effect in the fourth quarter, and Celltrion plans to use that to expand prescriptions in the market.
Early this year, Celltrion disclosed operating profit targets of 300 billion won for the first quarter, 400 billion won for the second and more than 500 billion won for the third. "We have exceeded our target every quarter through the third quarter, proving the profit growth plan we laid out at the start of the year," a Celltrion official said. "We will continue to raise the share of high-margin follow-on products and improve costs to lift the quality of our profit growth, while doing our utmost to meet our fourth-quarter and full-year business plans on the strength of growth drivers such as the U.S. launch of Omlyclo and expanded supply in Europe."