[Edaily Reporter KIM SAE-MI ] Celltrion(068270)is set to make an additional purchase of 100 billion won worth of its own shares. With this decision, the cumulative value of the treasury shares Celltrion plans to purchase this year will reach 400 billion won.

Celltrion announced on the 29th that it held a board of directors meeting and decided to purchase an additional 560,853 shares of its own stock. Based on the closing price on the day prior to the board resolution, this amounts to approximately 100 billion won. The acquisition of treasury stock is scheduled to take place through on-market purchases from the 30th through December 29.

This additional purchase follows Celltrion’s recent resolution to cancel treasury stock worth approximately 100 billion won. Including this latest purchase, the total number of treasury shares Celltrion has decided to acquire this year amounts to 2,135,262 shares, valued at approximately 400 billion won.

Celltrion explained that it decided to proceed with this purchase to stabilize the stock price and enhance shareholder value, as it believes the stock price is undervalued relative to the company’s intrinsic value and medium- to long-term growth potential.

Regarding whether to cancel the purchased shares, the company plans to gather shareholder input at the annual general meeting of shareholders next March and then decide on the option—between share cancellation and an expanded cash dividend—that offers the greatest return to shareholders. Based on the annual earnings and distributable profits to be finalized at the AGM, the company plans to compare the effects of treasury stock cancellation and increased cash dividends on shareholder value and comprehensively reflect shareholder opinions and market conditions. If treasury stock cancellation is decided, the company will follow the necessary procedures, such as a board resolution, after the AGM.

Celltrion has established a principle of returning one-third (approximately 33%) of its annual consolidated net income to shareholders through share buybacks or cash dividends over the medium to long term. The company determines the allocation between buybacks and dividends each year by considering factors such as earnings, free cash flow, stock price levels, and investment plans for research and development (R&D) and production facilities.

A Celltrion official stated, “This additional share buyback is a decision based on confidence in the company’s solid fundamentals and medium- to long-term growth potential,” adding, “At the annual general meeting of shareholders next March, we will carefully evaluate which approach—share retirement or an expanded cash dividend—provides more tangible benefits to shareholders.”