[Click eStock] "Celltrion Maintains Solid Growth Despite Tariff Concerns"

Daishin Securities stated that although Celltrion's stock price has recently declined due to concerns over U.S. pharmaceutical tariffs and sluggish sales of Zymfentra, the company's core business growth remains solid. The firm maintained its target price at 240,000 won and its "Buy" investment rating.

Celltrion is expected to report first-quarter sales of 836.3 billion won (up 13.5% year-on-year) and operating profit of 150.7 billion won (up 876% year-on-year) this year. Lee Heeyoung, a researcher at Daishin Securities, said, "While follow-up products such as Yuflyma and Vegzelma have shown strong sales growth, sales of existing products like Remsima IV are expected to decline, falling short of market expectations." She added, "Operating profit is also expected to miss market forecasts due to several factors: increased use of external CMO (contract manufacturing organizations), higher fixed costs related to preparations for the third plant inspection, and cost ratio pressures from securing DS (drug substance) in response to U.S. tariffs."

Recently, President Donald Trump signed an executive order to simplify the approval process for biosimilars as part of efforts to reduce healthcare costs in the United States, leading the market to weigh the potential impact on the company. Lee explained, "The site-neutral pricing policy is being considered to reduce the price gap for prescription drugs between hospitals and clinics, and if prescriptions at clinics increase, Zymfentra, which is administered subcutaneously, could benefit." She added, "Simplifying the biosimilar approval process is also positive for the company, but it is important to also consider the possibility of increased competition."