[Edaily Reporter KIM SAE-MI ] Celltrion(068270)posted its best-ever quarterly earnings in the third quarter of this year, demonstrating rapid growth. SAMSUNG BIOLOGICS(207940)is gaining recognition for its corporate value based on high profitability and a stable contract development and manufacturing organization (CDMO) business model, while expectations are also growing for Celltrion to be revalued following its improved earnings. The gap in market capitalization between the two companies stands at 19 trillion won.

According to the biotech industry on the 30th, Celltrion posted consolidated revenue of 1.5755 trillion won and operating profit of 525.3 billion won for the third quarter of this year. These figures represent year-over-year increases of 53.1% and 74.3%, respectively, and both mark all-time quarterly highs. Compared to the preliminary results announced on the 12th, revenue increased by 75.5 billion won and operating profit by 15.3 billion won.

Notably, the operating profit growth rate exceeded the revenue growth rate by 21.2 percentage points (p). Analysts attribute this to a combination of expanded sales of high-margin new products, an improved product mix, and greater efficiency in fixed costs driven by revenue growth, resulting in profitability improvements that outpaced revenue growth.

SAMSUNG BIOLOGICS Excels in Profitability, Celltrion in Growth Rate

SAMSUNG

BIOLOGICS

and

Celltrion

have established themselves as the two leading companies in the domestic biotech industry. Both companies are aiming to achieve annual revenue in the 5 trillion won range this year. However, they differ in terms of business structure, profitability, and growth drivers.

On the 21st, SAMSUNG BIOLOGICS announced that it recorded consolidated revenue of 1.4903 trillion won and operating profit of 640.1 billion won for the third quarter of this year. These figures represent year-over-year increases of 19% and 1%, respectively. These results reflect changes in the company’s business scope following last year’s spin-off of Samsung Bioepis.

SAMSUNG BIOLOGICS continued its revenue growth, driven by the full operation of Plants 1 through 4, an expanded utilization rate at Plant 5, and the inclusion of revenue from its Rockville, U.S., production facility. In particular, the company maintained high profitability with an operating margin of approximately 43% in the third quarter. Celltrion’s operating margin for the same period was 33.3%, meaning SAMSUNG BIOLOGICS’ margin was 9.7 percentage points higher.

In terms of third-quarter revenue, Celltrion reported 85.2 billion won more, while SAMSUNG BIOLOGICS posted 114.8 billion won more in operating profit. Conversely, Celltrion’s growth was relatively more pronounced in terms of year-over-year growth rates for both revenue and operating profit.

This is also linked to the differences in the two companies’ business structures. SAMSUNG BIOLOGICS is expanding its production capacity and order volume by focusing on its CDMO business targeting global pharmaceutical companies. Its cumulative order value since its founding has reached $22 billion (approximately 29.41 trillion won). In contrast, Celltrion operates a business model that encompasses everything from the development and production of its own biopharmaceuticals to direct global sales, growing through the launch of new products and the expansion of market share.

While SAMSUNG BIOLOGICS has secured high profitability based on its large-scale production facilities and global order base, Celltrion is simultaneously boosting both revenue and profits by expanding sales of high-margin new products.

These business structures and growth expectations are reflected in the companies’ market capitalizations. As of the 29th, SAMSUNG BIOLOGICS’ market capitalization stood at 63.002 trillion won, while Celltrion’s was 43.7689 trillion won, resulting in a gap of 19.2331 trillion won.

Since market capitalization comprehensively reflects not only current performance but also future profit-generating capacity, business stability, and growth prospects, it is difficult to make a simple comparison based solely on revenue or growth rates. However, analysts suggest that there is ample room for Celltrion’s corporate value to be reevaluated, given its recent earnings growth and improved profitability driven by the expansion of new products.

SAMSUNG BIOLOGICS raised its annual revenue growth forecast for this year from the previous range of 15–20% to 20% and set a revenue target of 5.4684 trillion won. Celltrion has also set a revenue target of 5.3 trillion won for this year. Both companies plan to sustain their growth momentum through the expansion of their global operations.

Celltrion Sees Sharp Rise in Operating Profit Despite Increased R&D Investment… New Product Effects Take Full Effect

A key point to note in Celltrion’s latest earnings report is that the company succeeded in improving profitability while expanding its research and development (R&D)

investment

.

Celltrion’s third-quarter R&D expenses totaled 71 billion won, a 29% increase from 55.1 billion won in the same period last year. R&D expenses are costs incurred during the development of new drugs and next-generation products and are reflected as expenses in current-period earnings. Despite the increased burden of R&D expenses, operating profit rose by 74.3%.

Celltrion is continuing to invest in securing future growth engines, with annual R&D expenditures of 420 billion won in 2024 and 482 billion won in 2025. The company explains that it is building a business structure that sustains earnings growth by reinvesting profits generated from its existing biosimilar business into new drug development.

Expanded sales of high-margin new products also supported the improvement in profits. Celltrion’s third-quarter revenue from new product lines reached 905.8 billion won, a 74% increase compared to the same period last year. The share of new products in total biopharmaceutical revenue also rose to 67%.

In particular, “Omriclo,” a treatment for allergic diseases, expanded its sales in the European market, recording cumulative sales of 320.5 billion won in the third quarter of this year. This represents a 542.3% increase compared to the same period last year. As the product was also launched in the U.S. market this month, it is expected to contribute further to future sales growth.

Analysts note that as the operational efficiency of the global direct sales network improves and the revenue share of high-margin new products expands, the structure where revenue growth translates into profit growth is being reinforced.

Securities Firms Successively Raise Target Prices… New Drug Development Also a New Growth Engine The securities industry

is also evaluating Celltrion’s growth momentum positively. Major securities firms, including NH INVESTMENT & SECURITIES, iM Securities, DaishinSecurities, IBK Investment & Securities, and HYUNDAI MOTOR SECURITIES, have successively raised their target prices following the announcement of third-quarter earnings.

Jeong Yi-su, an analyst at IBK Investment & Securities, stated, “Growth in new biosimilars exceeded market expectations,” adding, “We forecast simultaneous growth in revenue and profitability for the fourth quarter as well.” He explained that since the growth potential of new products and the competitiveness of direct sales are being confirmed by actual results, there is room for the company’s valuation multiples to rise to the levels that reflected growth expectations at the beginning of the year.

Han Seung-yeon, an analyst at NH INVESTMENT & SECURITIES, projected Celltrion’s revenue growth rate for next year at 20%. This significantly exceeds the projected growth rates of 5–6% for global biosimilar competitors such as Sandoz and Biocon. Analyst Han noted, “Celltrion is expected to demonstrate overwhelming growth and profitability compared to its peers,” adding, “A structural premium is absolutely necessary.”

SAMSUNG BIOLOGICS is also expanding its production capacity through Plant 5 and its Rockville, U.S., facility while maintaining high utilization rates at its existing production facilities. The company’s strategy is to strengthen its foundation for mid- to long-term growth by expanding its global production hubs and securing new orders.

Celltrion is working to secure mid- to long-term growth drivers by simultaneously expanding its biosimilar business and developing new drugs. The company aims to expand its portfolio of commercialized biosimilars from the current 11 products to 18 by 2030 and 41 by 2038. In the new drug sector, it is diversifying its therapeutic areas—including oncology, autoimmune diseases, and obesity—and is currently developing 25 candidate compounds.

Next year, the company plans to announce some topline results from key clinical trials for its antibody-based anticancer drug and to begin full-scale clinical trials for its obesity treatment. There are expectations that while the expansion of global sales of existing biosimilars will drive short-term earnings growth, new drug development will serve as a catalyst for medium- to long-term increases in corporate value.

Hong Ga-hye, an analyst at DaishinSecurities, predicted, “Celltrion’s growth momentum will continue next year,” adding, “The expansion of global sales for key products is expected to drive growth.”