[Edaily Reporter YU JIN-HEE ] Leading biotech stock Celltrion(068270)has immediately put its pledge of shareholder returns into action by canceling all of its treasury shares, valued at 100 billion won. 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 its 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 as sell orders.

Celltrion plans to flexibly tailor its shareholder return strategy each year by comprehensively evaluating trends in stock valuation, free cash flow (FCF), its research and development (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 implementing share buybacks and cancellations when the stock price remains undervalued relative to the company’s intrinsic value, and by combining these measures with cash dividends when liquidity is needed.

A Celltrion spokesperson stated, “This decision to cancel shares reaffirms our unwavering commitment to the medium- to long-term shareholder return principles we have 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.”