Celltrion Reports Record Quarterly Operating Profit Exceeding 500 Billion Won

Celltrion has reported its first quarterly operating profit exceeding 500 billion won in the third quarter of this year. Both sales and operating profit reached record highs for a quarter. The company had set quarterly operating profit targets of 300 billion won for the first quarter, 400 billion won for the second quarter, and 500 billion won for the third quarter, surpassing these goals for three consecutive quarters.

On October 12, Celltrion announced its preliminary results for the third quarter, reporting consolidated sales of 1.5 trillion won and an operating profit of 510 billion won. This represents a 45.8% increase in sales and a 69.2% increase in operating profit compared to the previous year. The operating profit margin rose to 34%, an increase of 4.7 percentage points from the same period last year.

The faster growth of profits compared to sales is attributed to an increased share of high-margin follow-up products and improved cost structure due to production efficiency.

In Europe, the subcutaneous formulation of 'Remsima SC' (ingredient: infliximab) and the allergy treatment 'Omnipklo' (ingredient: omalizumab) drove performance. Omnipklo, sold in 26 European countries, surpassed a 90% market share in Spain as of July. In Denmark, a national bidding win is expected to yield over 98% market share by the end of the year.

In the United States, as of August, 'Stakima' (ingredient: ustekinumab) and 'Uplima' (ingredient: adalimumab) recorded market shares of 15% and 11%, respectively. Existing products 'Truxima' (ingredient: rituximab) and 'Inflectra' (ingredient: infliximab) maintained solid market shares of 39% and 31%. Analysts attribute the success to the established local direct sales network and sales channels expanded through follow-up product sales.

The outlook for the fourth quarter is also positive. In Europe, major country bids and supply schedules are concentrated in the second half of the year, and there is an increased demand for inventory replenishment at year-end. Earlier this month, Omnipklo was launched in the U.S. as a 'first mover.'

Omnipklo was immediately listed as a preferred drug in the formulary of 'Optum,' one of the three largest pharmacy benefit managers (PBM) in the U.S., with reimbursement expected to be implemented in the fourth quarter. This means the company has secured the necessary insurance foundation for expanding prescriptions from the outset.

With the company consistently exceeding its quarterly operating profit targets set at the beginning of the year, market attention is now focused on whether it can achieve its fourth-quarter target of 600 billion won. If successful, the annual operating profit is expected to exceed 1.8 trillion won.

A Celltrion official stated, "We will continue to enhance the quality of profit growth by increasing the share of high-margin follow-up products and improving costs, while leveraging the launch of Omnipklo in the U.S. and expanding supply in Europe to achieve our fourth-quarter and annual business plans."