Celltrion Achieves Record First-Quarter Sales of 841.9 Billion KRW

Sales Up 14% and Operating Profit Up 870% Year-on-Year

A view of Celltrion Plant 2 in Songdo, Incheon./Incheon Photo by Hyunmin Kim kimhyun81@

Celltrion reported consolidated sales of 841.9 billion KRW and an operating profit of 149.4 billion KRW for the first quarter of this year. This marks the highest first-quarter sales in the company's history.

According to Celltrion's business performance announcement on May 9, the company's first-quarter sales increased by 14.2% year-on-year. Key products continued their robust growth across global markets. In particular, follow-up product lines such as RemsimaSC (ingredient: infliximab, subcutaneous injection), Yuflyma (ingredient: adalimumab), and Begzelma (ingredient: bevacizumab) led the growth in first-quarter sales, increasing by more than 62% compared to the same period last year.

Operating profit surged by 870.1% year-on-year, driven by the end of amortization for intangible assets such as license rights resulting from past mergers, as well as simultaneous improvements in inventory and sales integration. In addition, the cost of goods sold ratio continued to improve, as high-cost inventory generated by the merger was rapidly depleted and sales of high-margin follow-up products expanded.

Continued Expansion in Sales of Follow-up Products... Share of Sales Expected to Exceed 60% by Year-end

Celltrion's autoimmune disease treatment 'RemsimaSC'. Photo by Celltrion

As sales of Celltrion products continue to expand in major global markets such as Europe and the United States, prescriptions for follow-up product lines are accelerating. According to pharmaceutical market research firm IQVIA, as of the fourth quarter of last year, RemsimaSC achieved a 25% market share in the five major European countries (Germany, Spain, the United Kingdom, Italy, and France), demonstrating steady growth since its launch in 2020.

Another autoimmune disease treatment, Yuflyma, surpassed 100 billion KRW in quarterly sales for the first time, recording 108 billion KRW in the first quarter, which represents more than 1.6 times growth compared to the same period last year. Begzelma, an anticancer biosimilar, has continued to hold the top prescription position in Europe, achieving a 28% market share (IQVIA) in the fourth quarter of last year, despite being the latest entrant to the market, thanks to the local subsidiary's direct sales capabilities and product competitiveness.

With the continued strong performance of follow-up products, new products such as Stekima (ingredient: ustekinumab) are set to enter full-scale market competition starting this year. As a result, the combined sales share of follow-up and new products is expected to exceed 60% by the end of this year, and marketing activities aimed at achieving 5 trillion KRW in annual sales are expected to be further strengthened.

Four High-Profit New Products to Launch in Second Half and Full-Scale TI Product Manufacturing to Drive Quantitative and Qualitative Growth

Celltrion's strategy is to continue both quantitative and qualitative growth this year through new product launches and improvements in the cost of goods sold ratio. In particular, four products scheduled for release in the second half of the year (Omriclo, Idengelt, Aptozma, Stoboclo & Osenbelt) are expected to enter newly created biosimilar markets, offering high profit potential.

The most recently launched Stekima is also quickly expanding its presence in the United States, the world's largest pharmaceutical market, raising expectations for new products. Within just one month of its U.S. launch, Celltrion signed a formulary listing contract with one of the three largest pharmacy benefit managers (PBMs), which together control 80% of the market.

Improvements in the cost of goods sold ratio are also expected to continue. The cost of goods sold ratio, which stood at 63% at the end of 2023 when the merger was completed, dropped to 47% in the first quarter of this year. Several positive factors are expected to drive further improvement, including the depletion of high-cost inventory due to increased sales and the start of full-scale production of yield improvement (TI, Titer Improvement) products from the second quarter of this year.