The essence of the 'Integrated Celltrion' ship is imminent as Celltrion and Celltrion Healthcare, managed under CMS, achieved their highest quarterly sales in the third quarter of this year, raising expectations for their merger.
Celltrion announced on the 7th that it recorded consolidated sales of KRW 672.292 billion and operating profit of KRW 267.629 billion in the third quarter of this year. Both sales and operating profit set the highest quarterly records ever. Sales increased by 4.1% and operating profit by 25.2% compared to the same period last year. Accordingly, the operating profit margin also rose by 6.7 percentage points compared to the same period last year. The cumulative performance for this year was recorded at KRW 1.7938 trillion in sales and KRW 633.058 billion in operating profit. Sales increased by 1.2% and operating profit by 15.8% compared to last year, making it highly likely to achieve annual sales of KRW 2 trillion for two consecutive years.
The company explained, "In the third quarter, the expansion of market share for key biopharmaceuticals in global markets such as the United States and Europe and the full-scale market sales of new products led to balanced sales growth across product lines, resulting in performance growth." They added, "In particular, major biosimilar products such as 'Remsima' maintained steady market share, while next-generation products like 'Remsima SC' and 'Yuflyma' showed rapid growth, driving growth. Additionally, contract manufacturing organization (CMO) sales from Israel's Teva contributed to significant growth in sales and operating profit compared to the same period last year."
Celltrion Healthcare also achieved its highest quarterly sales with KRW 647.757 billion, as sales of major products expanded. Sales increased by 30.5% compared to the same period last year. However, operating profit was KRW 50.53 billion, down 30.3% from the same period last year. The company explained, "As direct sales regions expanded globally, costs related to workforce expansion and pharmaceutical transportation increased." They also analyzed that "the gross profit margin declined this quarter due to purchase price settlements with Celltrion caused by stronger-than-expected market price maintenance," which contributed to the profit decline. On a cumulative basis this year, sales reached KRW 1.6769 trillion and operating profit KRW 135.549 billion, bringing the company close to achieving its first-ever annual sales of KRW 2 trillion since its founding.
Celltrion's key biosimilar products, including Remsima, Truxima, and Herzuma, continue to grow in major global markets. According to IQVIA, a pharmaceutical market research firm, in the second quarter, the combined market share of Remsima and its subcutaneous (SC) formulation Remsima SC in the five major European countries (Germany, the United Kingdom, France, Italy, and Spain) reached 69.8%. Notably, Remsima SC alone surpassed an 18.8% market share.
Remsima SC recently received new drug approval from the U.S. Food and Drug Administration (FDA) under the name 'Zimpentra' (U.S. product name), further raising expectations. It was recognized as the only SC formulation in the infliximab market, and despite being a biosimilar product, it was exceptionally granted new drug approval. Accordingly, it is expected to enjoy exclusive new drug status through various patent protections until around 2040. Celltrion explained that self-administration at home without visiting medical institutions can significantly reduce costs, and as a new drug, it can command a high price, maximizing profits.
Additionally, Yuflyma's entry into the U.S. market is also accelerating. Celltrion Healthcare explained that Yuflyma has established itself as a key product driving performance improvement by setting a record for highest quarterly sales. It is listed as a 'preferred drug' by major pharmacy benefit managers (PBMs), including Optum, and plans to expand coverage to 40% of the total population by the end of this year.
Among these, this earnings announcement by Celltrion Healthcare is expected to be the last under the name 'Celltrion Healthcare.' The Celltrion Group currently plans for Celltrion to absorb Celltrion Healthcare and launch the 'Integrated Celltrion' within this year, followed by merging Celltrion Pharm within next year to create a fully unified company. The merger date for Celltrion and Celltrion Healthcare is set for December 28. Through the merger, the Celltrion Group aims to enhance transparency by simplifying the transaction structure, improve cost of sales ratio, and expand market dominance, presenting a goal of KRW 12 trillion in sales by 2030.
A Celltrion official said, "We are continuing our growth trend by achieving the highest quarterly sales ever and a high operating profit margin approaching 40%." They added, "In particular, the global market share expansion and stable market entry of key products, including next-generation products such as Yuflyma and Remsima SC, are rapidly securing future growth engines." A Celltrion Healthcare official also stated, "As a result of expanding prescriptions of existing products and profitable follow-up products worldwide, we recorded the highest cumulative sales of KRW 1.677 trillion through the third quarter, continuing sales growth." They added, "We are positively negotiating with major payors in the world's largest pharmaceutical market, the United States, for the inclusion of Yuflyma and Vegzelma in prescription formularies. We plan to maintain growth in the remaining fourth quarter and continue expanding sales and improving profitability based on cost ratio improvements through the merger with Celltrion, including the high-profit new drug 'Zimpentra,' which is scheduled for U.S. launch in the first quarter of next year."
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