[Edaily Reporter SONG YOUNG-DOO ] Celltrion(068270)reported its best-ever second-quarter earnings, driven by expanded sales of high-margin biosimilars. With new product sales accounting for over 60% of total revenue for the first time, combined with an improved cost ratio, the operating profit margin also exceeded 30%. The company believes it is highly likely to exceed its annual earnings target, taking into account seasonal factors where sales are typically concentrated in the second half of the year due to the nature of biosimilars.
On the 3rd, Celltrion announced that it recorded preliminary second-quarter revenue of 1.3 trillion won and operating profit of 430 billion won on a consolidated basis. Compared to the same period last year, revenue increased by 35.2% and operating profit by 77.3%. The operating profit margin improved significantly from 25% in the second quarter of last year to approximately 33%, marking the company’s best-ever second-quarter performance.
These results are considered significant because they reflect simultaneous improvements in both revenue growth and profitability. The company has now exceeded market expectations for two consecutive quarters, following the first quarter, and has also surpassed the second-quarter operating profit target (400 billion won) it set earlier this year.
Behind this improvement in performance lies a shift in the product portfolio. As sales of new biosimilars—including Remsima SC (U.S. product name: Zimpentra), Uplima, and Stekima—grew rapidly, the share of high-margin products exceeded 60% of total revenue.
Zimpentra continues to set new prescription records in the U.S., and Stekima is also rapidly expanding its market share there. The company explained that Aptozma, Stovoclo, and Osenvelt have also successfully established themselves in the market and have become new growth drivers.
Growth continued in Europe as well. Omriclo is maintaining its first-mover advantage, while Begzelma, despite being a later-entrant product, retained the top market share in key countries. The company expects Uplima, Aptozma, and Stovoclo·Osenvelt to contribute to improved second-half performance as they enter a phase of full-scale sales expansion.
The company also explained that profitability is improving structurally. Cost competitiveness has improved as most of the one-time costs incurred during the merger have been resolved, and factors such as the depletion of high-cost inventory, the completion of R&D expense amortization, and improved production yield (titer) have been reflected. The company explained that these changes are not one-time events but rather structural changes based on an improved product mix and enhanced production efficiency.
The company is also working to secure future growth drivers. CT-P55, a biosimilar of the autoimmune disease treatment Cosentyx, is currently undergoing the approval process in South Korea and North America, and the company is also pursuing global approval for Herzuma SC. Development of biosimilars for Keytruda and Darzalex is also proceeding smoothly, and the company plans to build a portfolio of 18 biosimilars by 2030 and a total of 41 by 2038.
New drug development is also gaining momentum. CT-P70 and CT-P71 have received Fast Track designation from the U.S. Food and Drug Administration (FDA), and the company is expanding its R&D investment with the goal of securing a total of 20 new drug pipeline candidates by next year.
The company is also expanding its production capacity. In South Korea, it is adding Plants 4 and 5, with a combined capacity of 180,000 liters, to its existing 250,000-liter production facility, and has decided to expand its Branchburg, New Jersey, plant by 75,000 liters. The company’s strategy is to expand its total production capacity in the U.S. to 141,000 liters through these measures, thereby strengthening supply stability and its ability to respond to tariffs. Industry observers believe that expanding the U.S. production base will positively contribute to mitigating future supply chain risks and expanding the contract manufacturing (CMO) business.
A Celltrion official stated, “Our strategies to expand new products and improve profitability are now being fully reflected in our financial results,” adding, “In the second half of the year, with the expansion of tenders in major countries and the growth of new products, we will strive to achieve results that surpass those of the first half.”
