Celltrion announced on May 21 that it will implement a series of measures, including a stock split, share buybacks, and the acquisition of shares by its largest shareholder, to enhance shareholder value and reassess corporate value.
This comprehensive response plan follows the company's review of strategies to improve shareholder value in light of recent market changes, as disclosed on its website on May 19. The measures aim to bolster both corporate and shareholder value.
For the second consecutive year, Celltrion will conduct a stock split, allocating 0.05 new shares for every common share held, totaling approximately 10.92 million shares. The new shares are expected to be listed on June 30.
Additionally, the company plans to buy back shares worth 100 billion won (approximately 55,000 shares). This follows a previous share buyback and cancellation of about 1.8 trillion won (approximately 9.11 million shares). By combining share buybacks with cancellations, Celltrion aims to address short-term market volatility while increasing shareholder returns in the long term.
If the current buyback is completed by the end of the year, the total cancellation for 2026 is projected to reach around 2 trillion won. The company has already canceled approximately 3.43 million shares in 2024 and about 4.97 million shares in 2025, bringing the cumulative cancellation over three years to approximately 18.56 million shares, or about 8.4% of the total issued shares.
Celltrion Holdings, the largest shareholder, and Celltrion employees will also participate in enhancing shareholder value. Celltrion Holdings plans to acquire additional shares worth about 100 billion won, and the employee stock ownership association will conduct its 12th stock subscription.
Celltrion believes that its export-focused business structure and treatment-centered portfolio will limit the impact of external environmental changes. The company stated that its sensitivity to exchange rate and economic fluctuations is low, reducing the risk of fundamental deterioration.
The comprehensive market response policy reflects the company's confidence in future growth. Celltrion has established a stable revenue base with 11 biosimilar products currently sold in the global market, and sales of high-revenue new products have increased by 67% compared to the same period last year, achieving the highest first-quarter performance to date. The company is focused on strengthening its business competitiveness and securing a sustainable growth foundation, with plans to quickly disclose its second-quarter results.
Celltrion Group's shareholder return policy continues to be robust. The company announced record-high dividends last year, stating, "We will continue to pursue a balanced approach to our mid- to long-term growth strategy and shareholder return policy, becoming a representative company that achieves sustainable growth." Moving forward, it plans to enhance shareholder value through tax-exempt dividends and cash dividends.
A Celltrion representative stated, "Despite macroeconomic uncertainties, we will maintain stable growth based on solid fundamentals and will continue to expand our shareholder-friendly policies to enhance corporate value."
* This article has been translated by AI.
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