Celltrion achieved its strongest second-quarter performance on record, with operating profit jumping 234% to 242.5 billion won ($174 million) while sales reached 961.5 billion won, up nearly 10% year-over-year. The Korean biosimilar manufacturer’s operating margin expanded to 25%, marking a dramatic turnaround from previous quarters.
The surge was driven by accelerating demand for high-margin biosimilars including Remsima SC (marketed as Zymfentra in the US), Yuflyma, Vegzelma and Stequema. First-half sales totaled 1.80 trillion won, another company record.
The results reflect easing pressures from Celltrion’s December 2023 merger with sales affiliate Celltrion Healthcare. Following the merger, direct costs initially surged but the impact has eased as high-cost inventories were depleted, production yields improved and utilization at its third plant increased.
Key drivers of improved profitability include the sell-off of high-cost inventories prior to the merger, improvements in production yields, higher utilization rates at its third plant, reduced reliance on outsourced active pharmaceutical ingredient production, and completion of amortization for development costs on existing products.
The company expects momentum to continue with the sequential global launch of four new high-margin products — Omlyclo, Eydenzelt, Stoboclo, and Osenvelt — in Europe, the US, and other key markets during the second half. Analysts forecast Celltrion could reach 5 trillion won in annual sales for 2025, its highest ever.
Reflecting confidence in its outlook, Celltrion announced its eighth share buyback program of the year, totaling 100 billion won, bringing cumulative buybacks to about 750 billion won.
