Continued Expansion of Follow-up Product Sales... Expected to Exceed 60% of Year-End Sales
Four High-Profit New Products to Launch in the Second Half... Aiming for Quantitative and Qualitative Growth
Progress in Discovering New Growth Engines... Achievements in Both Biosimilars and New Drugs
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 robust growth across global markets. In particular, follow-up products such as RemsimaSC (ingredient: infliximab, subcutaneous injection), Yuflyma (ingredient: adalimumab), and Vegzelma (ingredient: bevacizumab) led first-quarter sales growth, with sales of these products 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 distribution rights resulting from past mergers, as well as simultaneous improvements in inventory and sales integration. Additionally, the cost of goods sold ratio continued to improve as high-cost inventory generated by the merger was quickly depleted, while sales of high-margin follow-up products expanded.
Continued Expansion of Follow-up Product Sales... Expected to Exceed 60% of Year-End Sales
As Celltrion continues to expand sales in major global markets such as Europe and the United States, prescriptions for follow-up products are accelerating. According to pharmaceutical market research firm IQVIA, as of the fourth quarter of last year, RemsimaSC recorded a 25% market share in the five major European countries (Germany, Spain, 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, representing more than 1.6 times growth compared to the same period last year. Despite being the latest entrant in the European market among oncology biosimilars, Vegzelma maintained the top prescription position with a 28% market share (IQVIA) as of the fourth quarter last year, thanks to the local subsidiary's direct sales capabilities and product competitiveness.
With 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% of total sales by the end of the year, and marketing activities aimed at achieving annual sales of 5 trillion KRW are expected to be further strengthened.
Four High-Profit New Products to Launch in the Second Half... Aiming for Quantitative and Qualitative Growth
Celltrion plans to achieve both quantitative and qualitative growth this year through the launch of new products and improvement of the cost of goods sold ratio. In particular, four products scheduled for release in the second half of this year (Omriclo, Idengelt, Aptozma, Stoboclo & Osenbelt) will enter newly created biosimilar markets, offering high profit potential.
The most recently launched Stekima is rapidly expanding its sales channels in the United States, the world's largest pharmaceutical market, further raising expectations for new products. Within just one month of its U.S. launch, Celltrion signed a formulary listing agreement with one of the three largest pharmacy benefit managers (PBMs), which together control 80% of the market.
Improvement in the cost of goods sold ratio is also expected to continue. The cost of goods sold ratio, which stood at 63% at the time of the merger at the end of 2023, dropped to 47% in the first quarter of this year. This improvement is expected to be further driven by the depletion of high-cost inventory due to increased sales and the full-scale production of yield-improved (TI: Titer Improvement) products starting in the second quarter.
Progress in Discovering New Growth Engines... Achievements in Both Biosimilars and New Drugs
Celltrion is also focusing on discovering new growth engines to achieve sustainable growth. The company is developing next-generation pipelines, including biosimilars for four products currently in development?Ocrevus, Cosentyx, Keytruda, and Darzalex?with the goal of building a portfolio of 22 biosimilars by 2030.
Visible achievements are also being made in new drug development. Last month, at the world's largest cancer conference, 'AACR (American Association for Cancer Research) 2025' held in Chicago, Celltrion presented preclinical results of its multi-antibody-based anticancer new drug 'CT-P72 (ABP-102)' in an oral session. The preclinical results showed that CT-P72 selectively targeted cancer cells in HER2-overexpressing tumor models, demonstrating strong tumor inhibition, while exhibiting low toxicity to normal cells. These results indicate both safety and efficacy at the preclinical stage.
A Celltrion official stated, "With the growth of follow-up products such as RemsimaSC, the end of intangible asset amortization, and improvement in the inventory-sales mix, operating profit improved by more than 870%, establishing a foundation for both quantitative and qualitative growth this year. With the launch of high-profit new products in the second half and continued progress in new drug development as a core growth driver, we will make company-wide efforts to sustain performance growth."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
