[Click eStock] "Celltrion Minimizes Impact of US Tariffs... Also Expects Merger Benefits"

On the 14th, Korea Investment & Securities analyzed that Celltrion is confirming performance in sales along with strengthened competitiveness in biosimilar bidding in Europe due to merger expectations. The investment opinion was maintained as 'Buy' with a target price of 220,000 KRW.

Celltrion plans to launch five new biosimilar products this year, including Stekima (a Stelara biosimilar) which was launched in Europe and North America, as well as Actemra, Xolair, Prolia, and Eylea. Researcher Wi Haeju from Korea Investment & Securities stated, "From 2024, the merger effect is expected to increase the market share of existing products in Europe, along with additional sales from new products and Zimpenetra," forecasting 2025 sales to increase by 18% year-on-year to 4.2081 trillion KRW and operating profit to rise by 153% to 1.2429 trillion KRW. Wi explained that since the launch of high-priced new products will begin in the second half of the year, the gross profit margin (GPM) is expected to improve quarter by quarter.

It is also evaluated that measures have been prepared to minimize the impact of U.S. pharmaceutical tariffs. Researcher Wi said, "By completing shipment of nine months' worth of inventory by the end of January, the impact on U.S. sales this year has been minimized," and anticipated that the tariff impact would be limited since finished drug production has been carried out locally through CMO (Contract Manufacturing Organization) from the past.

Wi further added, "The U.S. government, aiming to reduce medical expenses in the mid to long term, cannot help but continue the trend of expanding biosimilar prescriptions," and "In addition, the merger expectation effect is strengthening the competitiveness of biosimilar bidding in Europe, and the results are also confirmed in sales." The expected performance for the first quarter of this year is sales of 913.4 billion KRW and operating profit of 210 billion KRW.