Samsung Securities reported on July 6 that it expects Celltrion to continue its profit improvement in the second half of the year, driven by increased bidding volumes and rising demand for inventory as the seasonal peak approaches. The firm raised its target price for Celltrion to 260,000 won while maintaining a "buy" rating.
In a report, analyst Seo Geun-hee noted that the proportion of high-margin new products, including Jimpenda, Stekima, and Uplyma, has increased by 65%, leading to a rapid improvement in the product mix. He highlighted that cost improvements from depleting existing inventory, the end of development cost amortization, and enhanced production yields have contributed to margin growth.
Seo added that starting in the second quarter, revenue from contract manufacturing operations (CMO) at the company’s Bridgewater, New Jersey facility began to be reflected in the financials. He stated that since the second-quarter results exceeded the company’s guidance, the likelihood of achieving guidance in the second half remains high, considering the seasonal peak and increased demand for inventory.
The analyst further indicated that the downside risk to annual performance estimates is easing. He pointed out that structural performance improvements from the increased share of new products, the recognition of CMO revenue in the U.S., and the potential for expanded listings with pharmacy benefit managers (PBMs) create a favorable policy environment that could allow for further upside potential.
* This article has been translated by AI.
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