Hyundai Motor Securities on Thursday maintained its “buy” rating on Celltrion and kept its target price at 270,000 won, saying rapid growth in the company’s new biosimilar lineup is expected to lead sales gains.
Kim Hyeon-seok, an analyst at Hyundai Motor Securities, said most of the new products were launched in the second half of last year, and he expects growth to accelerate further in the second half of this year.
He added that factors expected in the second half — including Omliclo’s U.S. launch and an expansion of Stekima’s indication for ulcerative colitis — should support sales growth.
Kim said that from the second quarter, Celltrion should see a larger revenue contribution from the new products and no longer face one-time costs tied to losses from a production halt caused by maintenance at its U.S. Branchburg plant in the first quarter, raising expectations for further improvement in operating margins.
He also said a favorable environment, including streamlined biosimilar clinical requirements, is translating into tangible benefits. Kim said regulators approved a sharp reduction in the number of patients required for Phase 3 trials of Cosentyx and Keytruda biosimilars, and he expects such benefits to continue.
Kim said shorter development timelines and lower costs should help convert the pipeline into revenue more quickly and improve operating margins. He added that the company is pursuing aggressive capacity expansion to boost sales volumes of new biosimilars and to scale up its contract manufacturing (CMO) business.
* This article has been translated by AI.
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