Celltrion Inc. is breaking from tradition by announcing its first combined cash and stock dividend program, marking a shift in the Korean biosimilar maker’s shareholder return strategy.
The company plans to distribute 153.7 billion won ($116 million) in cash dividends, offering 750 won per share to stockholders. Additionally, investors will receive a stock dividend of 0.05 won per share, resulting in 12.5 million new shares being issued.
This move follows Celltrion’s recent share buyback initiatives, with the company having repurchased 430 billion won worth of shares since the beginning of the year. The biotech firm has also committed to retiring approximately 563 billion won of treasury stock in January.
Looking ahead, Celltrion aims to increase dividend payments to 30% of post-investment profits, signaling a more aggressive approach to shareholder returns. The dividend distribution remains subject to shareholder approval at the annual general meeting in March, with the record date set for December 31.
The announcement represents a notable development for the Korean biotech sector, where companies traditionally prioritize research and development investments over shareholder distributions.
