[Weekly HOT Stocks] 'Celltrion' Leaps to Comprehensive Pharmaceutical Company... Record High Rally

On the 12th, despite the declining market, Celltrion closed at 297,500 won, hitting a 52-week high.

The view of Celltrion Plant 2 (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] Celltrion recorded an all-time high despite the declining market as it announced its merger and acquisition (M&A) news with Japan's Takeda Pharmaceutical.

According to the Korea Exchange on the 14th, Celltrion's closing price on the 12th reached 297,500 KRW, setting a 52-week high. This represents a 3.3% (9,500 KRW) increase compared to the previous trading day. This contrasts with the KOSPI index, which fell by 2.04% (44.48 points) on the same day.

On the 11th, Celltrion disclosed that it had acquired the Asia-Pacific pharmaceutical business division of Takeda, Japan's top pharmaceutical company. Takeda is known to have been selling off premium business divisions to secure cash liquidity following its acquisition of Shire in 2018. This contract involves Celltrion's 100% subsidiary acquiring the brand rights of 12 original prescription drugs and 6 over-the-counter drugs in nine Asia-Pacific countries including Korea, Australia, Taiwan, Thailand, Hong Kong, Singapore, and the Philippines. Among these are diabetes treatments Nesina and Actos, hypertension treatment Edarbi, comprehensive cold medicine Hwaituben, and stomatitis treatment Albothyl.

The securities industry evaluated this contract positively, especially viewing it as an opportunity for Celltrion to leap from a biosimilar company to a comprehensive pharmaceutical company. Shin Jaehoon, a researcher at Hanwha Investment & Securities, stated, "Through this contract, Celltrion will generate stable sales in the Asia-Pacific region with original products. After patent expiration, it will be possible to develop combination drugs and enter the global market. The diversification of products will allow the company to build a portfolio across various therapeutic areas, preparing it to become a global pharmaceutical company." He added, "Production of these products will be handled by Celltrion Pharm, which will secure cost competitiveness through increased operating rates and production internalization." Last year, sales in the nine countries amounted to approximately 160.5 billion KRW.

Kim Taehee, a researcher at Mirae Asset Daewoo, also explained, "Although the contribution to this year's and next year's performance is not significant, Celltrion has taken its first step as a comprehensive pharmaceutical company. While it previously had strengths in the US and Europe, it is now officially entering the Asia-Pacific market." He continued, "With the establishment of a pharmaceutical portfolio and sales network, launching new products has become easier. When the insulin biosimilar currently under development is released, synergy effects with Nesina and Actos are expected."

This content was produced with the assistance of AI translation services.