[Click eStock] "Celltrion Falls Short of Earnings Expectations... Target Price Down"

On the 6th, Samsung Securities slightly lowered the target price for Celltrion from the previous 211,921 KRW to 210,000 KRW.

Celltrion's sales in the fourth quarter of last year amounted to 510.6 billion KRW (consolidated basis), down 17.9% compared to the same period last year. Operating profit for the same period fell nearly 55% to 100.6 billion KRW. Although biosimilar sales increased, sales of COVID-19 treatments and diagnostic kits significantly declined. Additionally, due to decreased related demand, a one-time inventory provision of 50 billion KRW related to COVID diagnostic kits was reflected, and temporary costs such as bonus payments resulted in performance that fell significantly short of market expectations.

However, this year, sales are expected to increase by 9% year-on-year to 2.4894 trillion KRW, and operating profit is projected to rise by 23% to 798.3 billion KRW, driven by increased market share of major biosimilar products and new product launches.

Geunhee Seo, a researcher at Samsung Securities, stated, "The completion of Celltrion's third plant at the end of 2023 is expected to contribute to next year's sales," adding, "The Uplima approval by the U.S. Food and Drug Administration (FDA) is anticipated in May, and normal U.S. launch is expected on July 1." However, Seo noted, "Uplima's U.S. sales will fully commence in 2024 after listing on Pharmacy Benefit Manager (PBM), and the target price is slightly adjusted due to sales changes following the price reduction trend of Truxima." The investment opinion was maintained as 'Buy.'

Meanwhile, regarding the announcement on the 3rd that Honorary Chairman Jungjin Seo will return to the front lines of management, it was mentioned that "this is for quick decision-making in response to changes in the business environment and new investments," and it was judged that "this is a positive point for business strategy as it is an important milestone ahead of Uplima's U.S. launch."