NH Investment & Securities projected on October 13 that Celltrion will continue to experience significant earnings growth driven by increased sales of its new biosimilars. The firm maintained a 'Buy' rating and a target price of 270,000 won.
Han Seung-yeon, a researcher at NH Investment & Securities, stated, "Celltrion is a company that offers both stability as a defensive stock and growth potential in earnings. Considering the structural growth potential of the biosimilar industry, the buy recommendation remains valid."
Celltrion announced the previous day that its preliminary revenue for the third quarter of this year reached 1.5 trillion won, with an operating profit of 510 billion won. This aligns with market consensus, as the growth of new biosimilars offset negative impacts from currency fluctuations.
Han projected that Celltrion's operating profit will increase by 62% compared to the previous year. He also expects a growth rate in the mid-to-high 30% range for operating profit next year. He noted that Celltrion's stock price has declined by about 6% this year, which is relatively stable compared to the 27% drop in the KOSPI pharmaceutical sector.
Additionally, he highlighted the growth potential of the global biosimilar market. Global competitor Sandoz presented a strategy at its Capital Markets Day in September to expand its biosimilar development targets from primarily large pharmaceuticals to include smaller products. The company aims to increase its biosimilar offerings from the current 13 to 100 by 2028.
Han anticipates that regulatory easing, such as exemptions from Phase 3 clinical trials, will expand the market for biosimilars. He analyzed that the industry is likely to undergo restructuring, particularly among large companies that have vertically integrated their operations from development to production and sales. He stated, "Structural growth is expected for large biosimilar companies like Celltrion."
* This article has been translated by AI.
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