Celltrion Q3 Operating Profit Soars 70% to Record KRW 510 Billion

Revenue reaches KRW 1.5 trillion, up 45.8%
Operating margin rises 4.7 percentage points
"Driven by a higher share of high-margin follow-on products"

Celltrion posted record-high quarterly revenue and operating profit in the third quarter of this year. Boosted by expanded sales of new high-margin products and improvements to its cost structure, operating profit exceeded KRW 500 billion for the first time in the company's history.

Celltrion disclosed preliminary consolidated results on Oct. 12, reporting revenue of KRW 1.5 trillion and operating profit of KRW 510 billion for the third quarter of this year. The figures were up 45.8% and 69.2%, respectively, from the same period last year. Its operating margin rose 4.7 percentage points year over year to 34%.

Celltrion has now exceeded its earnings targets for three consecutive quarters. At the start of this year, it set operating profit targets of at least KRW 300 billion for the first quarter, KRW 400 billion for the second quarter and KRW 500 billion for the third quarter. The company said the results reflect expanded sales of highly profitable follow-on products alongside stable sales of existing products, as well as the effects of improved production efficiency and cost reductions.

In Europe, sales grew mainly on the strength of Remsima SC, a treatment for autoimmune diseases, and Omlyclo, a treatment for allergic diseases. Omlyclo, which is sold in 26 European countries, had a market share of more than 90% in Spain as of July this year. Celltrion also expects it to achieve a market share of at least 98% in Denmark by year-end, supported by national tender wins.

In the U.S. market, existing and follow-on products alike posted steady growth. As of August, Steqeyma and Yuflyma had market shares of 15% and 11%, respectively. Celltrion's established flagship products, Truxima and Inflectra, also maintained shares of 39% and 31%, respectively. Analysts say sales synergies are strengthening as the company's direct local sales network, built around its existing products, expands to include new products.

Omlyclo, newly launched in the United States, is expected to provide an additional growth driver in the fourth quarter. Earlier this month, Celltrion launched Omlyclo in the U.S., making it the first omalizumab biosimilar to enter the market. Upon launch, it was listed as a preferred drug on the private insurance formulary of Optum, one of the three largest pharmacy benefit managers (PBMs) in the United States, and is now awaiting reimbursement coverage in the fourth quarter. Expanded tender wins and supply volumes in major European countries are also expected to contribute to earnings growth.

A Celltrion official said, "We will continue to increase the share of high-margin follow-on products and improve our cost structure. At the same time, we will do our utmost to meet our fourth-quarter and full-year business targets, supported by the launch of Omlyclo in the United States and expanded supply in Europe."

This content was produced with the assistance of AI translation services.