Celltrion Surpasses 2 Trillion Won in Sales Last Year... Chairman Seo Jung-jin Makes a 'Rescue Comeback'

Record High Sales Driven by Biosimilar Business Growth
Operating Profit Declines Due to One-Time Diagnostic Kit Expenses
Chairman Seo Jeong-jin Returns to Management After Over Two Years

Celltrion surpassed 2 trillion KRW in sales last year, breaking its record for the highest-ever revenue. Seo Jung-jin, Honorary Chairman of Celltrion, will return to the forefront of management to lead the group.

Incheon Songdo Celltrion Plant 2 Overview. / Incheon - Photo by Hyunmin Kim kimhyun81@

Celltrion announced on the 3rd that its consolidated sales last year were preliminarily estimated at 2.2839 trillion KRW, a 20.63% increase compared to the previous year. This is the largest annual scale in the company's history. However, operating profit during the same period decreased by 13.03% to 647.1 billion KRW, and net profit fell by 9.72% to 537.9 billion KRW. The operating profit margin was recorded at 28.3%.

On a quarterly basis, in the fourth quarter of last year, sales reached 510.6 billion KRW and operating profit was 100.6 billion KRW. These figures represent decreases of 15.37% and 50.25%, respectively.

Celltrion explained that it achieved the highest annual sales ever thanks to growth in its core biosimilar business. In particular, sales increased due to the rising market share of 'Remsima IV' in the U.S. and the launch of new products, while chemical drug sales also grew by more than 30%, driving overall sales growth.

The decrease in operating profit was attributed to the increased sales proportion of Remsima IV, which has relatively lower profitability, and temporary costs related to diagnostic kits. Celltrion stated that excluding the temporary diagnostic kit costs, it maintained an operating profit margin in the 30% range for the year. The evaluation losses related to diagnostic kits were fully processed by the fourth quarter of last year, and the company expects minimal impact from this going forward.

Celltrion plans to continue its growth this year through ▲launching new biosimilar products ▲differentiating biosimilar formulations and devices ▲and developing biopharmaceuticals.

First, it will expand its presence in the U.S. market with products such as the Humira biosimilar 'Uplima (CT-P17)' and 'Remsima SC,' which are preparing to enter the U.S. market. Celltrion completed the FDA approval application for Remsima SC at the end of last year and expects to obtain approval by the end of this year. Uplima has reached a patent agreement with the original drug developer and is expected to receive FDA approval in May this year.

The company also announced plans to further strengthen its core business centered on biosimilars and biopharmaceuticals. Celltrion is preparing to apply for approval for up to five biosimilar products this year, including ▲Stelara biosimilar CT-P43 ▲Eylea biosimilar CT-P42 ▲Prolia biosimilar CT-P41 ▲Actemra biosimilar CT-P47. Additionally, it plans to accelerate biopharmaceutical development by continuing technology investments and expanding technology licensing agreements in areas such as antibody-drug conjugates (ADC) and bispecific antibodies.

A Celltrion representative said, "Thanks to steady growth in the biosimilar business, we achieved record-high sales last year, and this year we plan to continue product launches, approval applications, and differentiation strategies to solidify our position as a leader in biosimilars. We will also accelerate ongoing biopharmaceutical development and do our best to make this year another year of new leaps forward."

Seo Jung-jin, Honorary Chairman of Celltrion Group. [Photo by Celltrion Group]

Seo Jung-jin, Honorary Chairman of Celltrion, is scheduled to return to the forefront of management after about two years to lead the group.

On the same day, Celltrion Group held board meetings for its affiliates and resolved to recommend Honorary Chairman Seo as a candidate for inside director and co-chairman of the board of directors for a two-year term. Seo’s appointment as inside director and co-chairman will be finalized after approval at the shareholders' meetings and board meetings of each company scheduled for the 28th.

Celltrion Group explained that amid increasing global economic uncertainties, the current management, which is working on overcoming crises and reorganizing future strategies, requested the temporary return of the founder Seo Jung-jin to management. Seo had previously stepped down from frontline management in March 2021 but promised to return if rapid changes occurred in the group’s environment.

A Celltrion Group official said, "With many significant issues piling up, Seo’s quick judgment and decision-making are urgently needed, so the board actively pursued his temporary return to management. Once this appointment is finalized, Seo’s unique leadership will greatly help overcome the economic crisis and turn challenges into opportunities, laying the foundation for sustainable future growth."