[Edaily YU JIN-HEE Reporter] Leading biotech stock Celltrion(068270)has immediately put its commitment to shareholder returns into action by retiring its entire 100 billion won worth of treasury stock. This move is intended to solidify trust with the market by promptly implementing the recently announced mid-to-long-term guideline to “return 33% of annual net income.”

Celltrion announced on the 16th that it held a board of directors meeting and resolved to cancel 544,299 shares of treasury stock (valued at approximately 100 billion won) previously acquired to enhance shareholder value. The cancellation is scheduled for September 30, and the reclassification of the company’s listing on the KOSPI following the capital reduction is expected to be finalized in October.

This treasury stock cancellation is part of Celltrion’s previously announced medium- to long-term shareholder return policy. The company recently formalized its policy to “allocate one-third (approximately 33%) of annual consolidated net income to treasury stock cancellations or cash dividends.”

With this resolution, the total value of treasury shares that Celltrion has purchased and decided to cancel this year has risen to approximately 200 billion won across two rounds. Rather than simply buying shares on the open market to prop up the stock price, the company has opted for a full cancellation, permanently removing them from its books. This decision is intended to completely dispel concerns about an “overhang” (potential selling pressure) arising from the possibility that treasury shares could re-enter the market.

Celltrion plans to flexibly structure its shareholder return strategy by comprehensively evaluating annual trends in stock valuation, free cash flow (FCF), the R&D pipeline, and the scale of investment in overseas production facilities. The strategy is to maximize the practical benefits of boosting shareholder value by initiating share buybacks and cancellations when the stock price remains undervalued relative to the company’s intrinsic value, and by supplementing these measures with cash dividends when liquidity is needed.

The solid foundation that enables Celltrion to sustain such an aggressive shareholder return strategy is its robust fundamentals. Last year, Celltrion achieved record-breaking performance, posting consolidated annual revenue of 4.1625 trillion won and operating profit of 1.1685 trillion won. In the first half of this year as well, the company posted revenue of 2.5387 trillion won and operating profit of 773.7 billion won, demonstrating a solid upward trend in performance. In major global markets such as Europe and the United States, the “Big Three” first-generation biosimilars—Remsima, Truxima, and Herzuma—are maintaining a solid market share.

In addition, the accelerating adoption of high-margin next-generation biopharmaceuticals—such as Uplima for autoimmune diseases, the anticancer drug Vegzelma, and Omriclo for asthma and hives—has ignited the company’s medium- to long-term growth engine. The company plans to establish a virtuous cycle by balancing the allocation of substantial cash generated from its core business between the discovery of future biopharmaceutical innovations and shareholder returns.

A Celltrion spokesperson stated, “This decision to cancel shares reaffirms that we are steadfastly implementing the medium- to long-term shareholder return principles we presented to the market,” adding, “Based on our record-breaking earnings and cash generation capabilities, we will continue to invest in future growth engines while consistently maintaining our shareholder return ratio to simultaneously enhance corporate value and shareholder interests.”