Celltrion Holdings and Celltrion Skincure
Decide to Purchase 100 Billion KRW and 50 Billion KRW Worth of Shares, Respectively
Celltrion announced on the 9th through a public disclosure that Chairman Seo Jung-jin plans to acquire approximately 50 billion KRW worth of shares on the market using his personal funds. Chairman Seo intends to purchase 306,561 shares of Celltrion on the market.
On the same day, Celltrion Holdings, the holding company of the Celltrion Group, and Celltrion Skincure, an affiliate within the group, also decided to purchase approximately 100 billion KRW and 50 billion KRW worth of Celltrion shares, respectively. Accordingly, major shareholders including Chairman Seo Jung-jin plan to sequentially acquire a total of 200 billion KRW worth of Celltrion shares starting from the 9th of next month, in accordance with the 'Report on Trading Plans of Executives and Major Shareholders for Specific Securities.'
Celltrion explained, "Chairman Seo Jung-jin's decision to acquire shares reflects the fact that Celltrion's stock price has been excessively undervalued due to recent domestic and international issues compared to its intrinsic value, and it also demonstrates the top management's confidence in future growth as well as their active commitment to enhancing shareholder value."
Celltrion holds the view that concerns in the stock market related to the recent US tariff issues are somewhat excessive. As previously announced on the official website, preparations for tariff risks have been steadily underway since last year, and short- and mid-to-long-term countermeasures have already been systematically established.
In the short term, more than one year's worth of inventory has been transferred to the US local site. In the mid-to-long term, collaboration procedures with a US-based CDMO (Contract Development and Manufacturing Organization) company have been completed, and a decision regarding securing local production facilities is expected to be finalized by the end of the year. In addition, the business plans announced at the beginning of the year are progressing sequentially without any setbacks.
A Celltrion representative stated, "The top management's decision to purchase shares reflects their judgment that the current stock price is significantly undervalued compared to intrinsic value, expressing confidence in business growth and a commitment to strengthen responsible management. Since the growth potential and value of the company's key businesses remain unchanged, we plan to continue responsible management aimed at preserving corporate value and enhancing shareholder value."
Meanwhile, Celltrion decided on the 3rd of this month to repurchase approximately 100 billion KRW worth of treasury shares, and has been acquiring treasury shares worth about 350 billion KRW since the beginning of the year. The company is actively engaging not only in share repurchases but also in share cancellations. The total scale of treasury shares canceled or in the process of cancellation this year has already exceeded 800 billion KRW.
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