Celltrion Chairman Seo Jung-jin speaks during a shareholders' meeting at the Songdo Convensia in Incheon, March 24. Courtesy of Celltrion
Celltrion, the Korean biotechnology titan that helped pioneer the global market for biosimilars — lower-cost, near-identical versions of expensive biologic drugs — posted record-breaking first-quarter earnings results Tuesday, signaling a robust expansion into the lucrative Western pharmaceutical landscape.
The company reported consolidated revenue of 1.15 trillion won ($834 million), a 36 percent year-on-year increase, while operating profit more than doubled to 321.9 billion won.
The surge in profitability, which represents a 115.5 percent jump, pushed the firm’s operating margin to 28.1 percent. Management noted that the margin likely would have eclipsed 30 percent if not for a brief, scheduled maintenance hiatus at its New Jersey manufacturing facility in February.
The quarterly performance was anchored by a strategic pivot toward a new generation of biosimilars, which now account for 60 percent of total product revenue — a first for the company. Leading this charge is Zymfentra, a subcutaneous formulation of the autoimmune drug infliximab. In the United States, Zymfentra’s monthly prescription volume reached an all-time high, currently pacing at triple the rate seen a year ago. The momentum extended to Europe, where Omlyclo, an asthma and allergy treatment, captured a staggering 98 percent of the market tender in Denmark and 80 percent in Spain within just four months of its debut.
Management signaled that the first-quarter results — traditionally the firm’s slowest period — place its ambitious full-year targets of 5.3 trillion won in revenue and 1.8 trillion won in operating profit “clearly within reach.” To further shore up investor confidence, Celltrion’s board approved the cancellation of roughly 100 billion won in treasury shares. This follows a historic 1.8 trillion won buyback completed last month, which the company characterized as the largest in its history.
Looking toward the second half of the year, Celltrion expects to accelerate growth as European tender awards translate into higher supply volumes. The company also anticipates a fresh revenue stream from its recently acquired Branchburg, New Jersey, plant. Formerly an Eli Lilly facility, the site is slated for a massive capacity expansion to 132,000 liters to fulfill a long-term biopharmaceutical supply agreement with the American drugmaker through 2029.
This article was published with the assistance of generative AI and edited by The Korea Times.
Source: Korea Times News
