Celltrion Reports Record Q3 Revenue and Operating Profit... 'Earnings Surprise'

Operating Profit 245.3 Billion KRW... 137.8% Increase

[Asia Economy Reporter Seo So-jeong] Celltrion achieved its highest quarterly sales and operating profit in the third quarter. This is an 'earnings surprise' far exceeding securities firms' expectations.

On the 9th, Celltrion announced consolidated third-quarter sales of 548.8 billion KRW and operating profit of 245.3 billion KRW, representing increases of 89.9% and 137.8%, respectively, compared to the same period last year.

In the third quarter, growth was driven by the expansion of the biopharmaceutical market, increased contract manufacturing organization (CMO) sales, and improved production efficiency. Stable sales of the existing Remsima IV and the preparation for sales expansion through the indication extension of Remsima SC progressed in earnest. Additionally, global growth of Teva’s migraine treatment 'Ajovy' continued, increasing CMO supply and resulting in sales growth of 89.9% year-on-year. Operating profit increased by 137.8% year-on-year due to the growth in CMO sales and improved production efficiency from the full-scale operation of the first plant expansion facilities.

Remsima 55%, Truxima 37%, Herzuma 16% Market Share in Europe

Celltrion’s main biosimilar product lineup maintains a stable market share in the European market. According to IQVIA, a pharmaceutical market research firm, and Celltrion Healthcare, as of the second quarter of this year, Remsima held a 55% market share, Truxima 37%, and Herzuma 16% in the European market.

In the United States, the world’s largest pharmaceutical market, market share continues to expand steadily. According to Symphony Health, a medical information provider, as of the third quarter of this year, Remsima sold through Pfizer achieved an 11.3% market share, and Truxima sold through Teva reached a 20.4% market share.

Remsima SC, the world’s first infliximab SC formulation, is expected to expand its market significantly after obtaining all adult indications for inflammatory bowel disease, Crohn’s disease, and ulcerative colitis from the European Medicines Agency (EMA) in July, following its rheumatoid arthritis indication.

The CMO supply contract for Teva’s migraine treatment Ajovy generated sales of 46.5 billion KRW this quarter out of a total contract amount of 115.6 billion KRW. Teva recently stated in its Q3 2020 earnings report that Ajovy is accelerating market entry in major markets such as Germany.

Dedicated to Developing COVID-19 Antibody Treatment CT-P59

Celltrion is committed to developing the COVID-19 antibody treatment CT-P59 based on early diagnosis and treatment. Celltrion demonstrated safety in a Phase 1 clinical trial with healthy subjects and recently confirmed safety and antiviral efficacy in a Phase 1 trial with mild patients through a conference presentation. Additionally, Phase 2 and 3 clinical trials targeting mild to moderate patients are underway, with plans to secure meaningful interim results within the year.

Celltrion is also developing and supplying various types of diagnostic kits, including antigen, antibody, and dual kits, in collaboration with diagnostic kit specialists. The rapid antigen diagnostic kit recently received Emergency Use Authorization (EUA) in the United States and subsequently signed a large supply contract worth 210 billion KRW with a U.S. wholesale distributor.

Celltrion is focusing on expanding its biosimilar product lineup with the goal of obtaining approval for at least one follow-up biosimilar each year until 2030. Currently, six products are undergoing global clinical trials, including Remsima SC, which is in Phase 3 clinical trials in the U.S., Humira biosimilar CT-P17 for autoimmune diseases, Avastin biosimilar CT-P16 for colorectal cancer, Xolair biosimilar CT-P39 for allergic asthma and chronic urticaria, Stelara biosimilar CT-P43 for autoimmune diseases, and Prolia biosimilar CT-P41 for osteoporosis.

A Celltrion official stated, “Despite the challenging business environment due to COVID-19, third-quarter sales and operating profit grew significantly due to increased supply driven by global demand expansion for biopharmaceuticals sold worldwide and growth in CMO sales. We will accelerate the development of the COVID-19 antibody treatment and diagnostic kit supply, as well as the follow-up biosimilar pipeline, which is our next-generation growth engine, to achieve sustainable mid- to long-term growth.”

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