[Edaily Reporter KIM SAE-MI ] Celltrion set a new quarterly record with third-quarter revenue of 1.5 trillion won and operating profit of 510 billion won. Driven by an increased share of high-margin biosimilar products and improvements in the cost structure, operating profit exceeded 500 billion won for the first time. The company plans to continue its growth momentum in the fourth quarter, backed by the launch of new products in the U.S. and expanded supply in Europe.

Celltrion(068270)announced on the 12th that its consolidated operating profit for the third quarter of this year was 510 billion won, a 69.2% increase compared to the same period last year. Revenue for the same period rose 45.8% to 1.5 trillion won. The operating profit margin stood at 34%, up 4.7 percentage points (p) year-over-year. Both revenue and operating profit reached record highs on a quarterly basis.

Compared to the previous quarter, revenue increased by 7.6% and operating profit by 12.9%. Cumulative revenue for the first three quarters of this year reached 4.0387 trillion won, up 42.6% year-over-year, while cumulative operating profit rose 85.2% to 1.2837 trillion won. The cumulative operating profit margin stood at 31.8%, an improvement of 7.3 percentage points from the same period last year (24.5%).

Earlier this year, Celltrion announced its future business and management plans, setting quarterly operating profit targets of 300 billion won for the first quarter, 400 billion won for the second quarter, and over 500 billion won for the third quarter. Actual operating profits were 321.9 billion won in the first quarter, 451.8 billion won in the second quarter, and 510 billion won in the third quarter, exceeding the targets for three consecutive quarters.

Expanding

the Share of High-Margin Follow-On Products… Achieving a 34% Operating Profit Margin

The improvement in earnings was largely driven by an increase in the sales

share of

relatively high-margin follow-on biosimilar

products

. The product mix improved as sales of existing products remained stable in major global markets, while prescriptions and tender wins for new products expanded. The company explained that continued efforts to enhance production efficiency and improve the cost structure also contributed to the increase in operating profit.

In particular, the trend toward improved profitability became evident as the operating profit growth rate exceeded the revenue growth rate. Celltrion is enhancing sales efficiency by expanding the global direct sales and sales networks established through its existing products to include new products. The company expects these improvements in product mix and cost-saving measures to have a positive impact on future performance.

In Europe, prescription and tender results for follow-on product lines—centered on “Remsima SC” and “Omriclo”—have expanded. In particular, Omriclo is sold in 26 European countries and is rapidly increasing its market share in key markets.

As of last July, Omriclo recorded a market share of over 90% in Spain. Spain is one of the five major European markets (EU5), along with Germany, France, Italy, and the United Kingdom. The company expects Omriclo to achieve a market share of over 98% in Denmark by the end of the year, based on its success in winning a national tender.

The European market is characterized by pharmaceutical tenders and product supply schedules in major countries being concentrated in the second half of the year. Celltrion forecasts that sales will increase in the fourth quarter, as tender success for new products leads to actual supply expansion, coupled with year-end demand for inventory buildup.

Sales of both existing and new products are also expanding in the U.S. As of last August, “Stecima” and “Uplima” recorded market shares of 15% and 11%, respectively. The market shares of existing products “Truxima” and “Inflectra” stood at 39% and 31%, respectively.

Celltrion is pursuing a strategy to maintain the market position of its existing products while expanding the market share of its new products. The company is strengthening sales synergies across its entire portfolio by leveraging the local direct sales network and business networks with healthcare professionals and insurance companies—established through its existing products—for its subsequent products.

'Omriclo'

Launched

in the U.S. and Listed as a Preferred Drug by Optum… Growth Expected in Q4

In

the fourth quarter

, the sales performance of Omriclo—which was launched in

the U.S.

earlier this month—is seen as a key variable. Omriclo was launched using a “first-mover” strategy, entering the U.S. market ahead of competing biosimilars.

Upon launch, Omriclo was listed as a “preferred drug” in the private insurance formulary of Optum, one of the three major U.S. pharmacy benefit managers (PBMs). PBMs are organizations that, on behalf of insurers in the U.S., handle formulary listings and negotiate drug prices and rebates, playing a crucial role in securing access to insurance coverage.

Celltrion expects insurance reimbursement for Omriclo to begin in the fourth quarter. Based on this, the company plans to gradually expand actual prescriptions and increase the revenue contribution of new products in the U.S.

In Europe as well, the company expects to continue expanding product supply through tenders in major countries and driving market penetration for new products. Celltrion plans to focus on achieving its fourth-quarter and full-year business targets by continuously increasing the revenue share of its highly profitable follow-on product portfolio, while also improving production efficiency and optimizing its cost structure.

A Celltrion official stated, “Quarterly operating profit exceeded 500 billion won for the first time, and we have demonstrated the effectiveness of our growth strategy through our results, having exceeded the quarterly profit targets set at the beginning of the year for three consecutive quarters,” adding, “We will do our utmost to achieve our fourth-quarter and full-year business plans as well.”