[Click e-Stock] "Celltrion's New Products Gain Momentum... Target Price Raised"

Hyundai Motor Securities Raises Celltrion Target Price to 300,000 Won

On October 28, Hyundai Motor Securities raised its target price for Celltrion from 280,000 won to 300,000 won, saying growth in its new product lineup was steeper than expected, and maintained its “Buy” rating.

Celltrion posted revenue of 1.5755 trillion won (+53.1% year over year) and operating profit of 525.3 billion won (+74.3%) in the third quarter, beating market expectations for the third consecutive quarter.

“While market shares for existing products remained solid, growth in the new product lineup and increased contract manufacturing organization (CMO) volumes for Eli Lilly drove revenue growth,” said Kim Hyunseok, an analyst at Hyundai Motor Securities. “New products accounted for 67% of total biosimilar revenue, and five new products, including Omlyclo, contributed 77% of the quarter-over-quarter increase in biosimilar revenue.”

The new product lineup is growing rapidly. Omlyclo generated 132.1 billion won in revenue in the third quarter in Europe alone, and stronger growth is expected in the fourth quarter following its U.S. launch. Hyundai Motor Securities said Omlyclo was gaining market share in the absence of competing products, as its shelf life and room-temperature storage period have been extended compared with existing products.

Among Celltrion’s biosimilars, Stoboclo and Osenvelt posted the strongest growth. They were listed as preferred drugs by three of the five largest pharmacy benefit managers (PBMs) in the United States, and revenue surged from 74 billion won in the second quarter to 112 billion won. The company is also expected to expand its market penetration by leveraging the sales network of Gipre, the French healthcare company it recently acquired.

Aptozma and Zymfentra are also expected to drive future earnings growth. “Although Eydenzelt’s revenue is not as high as that of the other products, it is expected to begin growing in earnest in 2027 as supply volumes increase alongside its U.S. launch in the fourth quarter,” Kim said. “Zymfentra’s prescription volume is rising, but its revenue fell quarter over quarter in the third quarter, following a decline in the second quarter. Revenue growth is expected from the fourth quarter, when collaboration with Pfizer is set to begin.”

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