[Click eStock] "Celltrion, Earnings Exceed Expectations Due to Increase in Remsima SC"

Kiwoom Securities Issues 'Buy' Investment Opinion and Sets Target Price at 360,000 Won... Closing Price on the 9th at 285,000 Won

[Asia Economy Reporter Kum Boryeong] Celltrion posted results exceeding expectations due to the increase in Remsima SC.

According to Kiwoom Securities on the 10th, Celltrion's Q3 operating profit was 245.3 billion KRW, and sales were 548.8 billion KRW. Compared to the previous year, operating profit increased by 138% and sales by 90%.

Heo Hyemin, a researcher at Kiwoom Securities, analyzed, "Remsima SC, which has a high margin for Celltrion Healthcare, was supplied at 208.5 billion KRW, higher than the expected 85.7 billion KRW. Additionally, sales and profits both recorded strong results as the contract manufacturing organization (CMO) volume of Ajovy for Teva increased by about 46.5 billion KRW."

Kiwoom Securities gave Celltrion a 'Buy' investment rating with a target price of 360,000 KRW, up from the previous 350,000 KRW. The closing price on the 9th was 285,000 KRW. Researcher Heo stated, "The rapid diagnostic kits for COVID-19 worth 210 billion KRW are expected to be reflected in the first half of next year, leading to an upward revision of earnings estimates and target price. Although there may be concerns about inventory burden as the cumulative sales amount of Remsima SC for Celltrion Healthcare has exceeded 700 billion KRW, this is considered a preemptive measure to secure stable inventory for 6 to 9 months. Additional supply of diagnostic kits is also possible in the future but has not yet been confirmed and thus not reflected in the estimates."

The Phase 2/3 Part 1 data announcement for the COVID-19 antibody treatment is expected within this year, with domestic emergency conditional approval anticipated in the first quarter of next year. Heo's analysis suggests a high likelihood of success due to the clinical design focusing on mild cases. He said, "If launched, since we also have diagnostic kit products, we are building a product portfolio that administers early treatment after diagnosis, so synergy is expected."

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