2024-08-07 23:28:46
Operating profit ↓ due to inventory cost reflection and depreciation impact from merger
Establishing a foundation for growth through product expansion and establishment of a third factory
Next-Generation Power Zimpentra Completes Contracts with 3 Major U.S. PBMs
“Gimpentra Market Settlement, Sales Expansion Expected to Begin in Full Scale”
Celltrion announced on the 7th that it recorded consolidated sales of 874.7 billion won and operating profit of 72.5 billion won in the second quarter of this year. Sales grew 66.9% year-on-year, the highest quarterly figure ever. On the other hand, operating profit decreased 60.4%. Due to the increase in the cost of goods sold due to the inventory combination after the integration (Celltrion and Celltrion Healthcare) and the impact of follow-up measures after the merger, such as the amortization of intangible assets, overall performance has not yet reached its full potential.
In terms of sales, it recorded the highest figure ever. The biosimilar business, which is the mainstay of the business, showed a solid flow. It is said that the main products continued to perform well and the follow-up products also showed steady growth, adding strength to the performance. The biosimilar business sales amounted to 774 billion won, a 103.6% increase from last year.
Celltrion is forecasting that the performance in the second half of the year will gradually improve. It said that the large-scale intangible asset rights resulting from the merger were amortized as of this second quarter and inventory depletion is also proceeding smoothly. The solid growth of the main business is also a reason to be positive about future performance.
In terms of products, expectations are rising for ‘Zimpentra (Ramsima SC),’ which is considered a growth engine. Ahead of full-scale sales in the US, the world’s largest market, a contract for listing Zimpentra in the local prescription drug benefit management company (PBM) has been completed. Some of them are even leading to actual sales performance. The three major PBMs account for 80% of the entire US insurance market coverage (based on the number of subscribers) and are expected to have a significant impact on the future sales growth of Zimpentra.
It is also evaluated that the follow-up pipeline approval and plant expansion following Zimfentra are also proceeding smoothly. Celltrion has announced a plan to complete a portfolio of 11 biosimilar products by next year. Recently, Omriclor (Xolair biosimilar), Idenselt (Eylea biosimilar), and Stekima (Stelara biosimilar) have obtained approval, and global blockbuster product biosimilars such as Actemra and Prolia have completed phase 3 clinical trials and are in the approval process.
We are also strengthening our production base to support the expansion of our portfolio. Our third plant, with an annual production capacity of 60,000 liters, is scheduled to begin commercial production within the year. As a facility capable of producing a variety of small quantities, we expect this to have a positive impact on cost competitiveness and profitability improvement as we will be able to flexibly respond to product demand.
A Celltrion official said, “Our four main products, including Remsima, Remsima SC, Uplyma, and Begzelma, continued to show solid growth in major markets and achieved high sales performance, and the performance of follow-up items, including Zimfentra, is also starting to become visible.” He added, “The temporary amortization factor due to the merger has been resolved, and we are smoothly establishing a foundation for growth centered on next-generation products. We will make company-wide efforts to ensure that these positive factors are fully reflected in our performance.”
Kim Min-beom, Donga.com reporter [email protected]
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2024-08-07 23:28:46