Model Student Celltrion Responds to U.S. Tariffs, Achieves Record High in Q2 Performance

[Financial News] As high-value products show significant growth, Celltrion's consolidated sales for the second quarter approached 1 trillion won, achieving the highest performance on a second-quarter basis. 
Celltrion announced on the 21st through a preliminary results disclosure that it recorded consolidated sales of 961.5 billion won and an operating profit of 242.5 billion won for the second quarter of this year.
Compared to the same period last year, sales increased by 9.9% and operating profit by 234.5%. This is the highest performance on a second-quarter basis, with the operating profit margin significantly improved to around 25%.
This performance is analyzed as a result of stable global sales of existing major products and the significant growth of high-profit new products.
The expansion of sales of high-margin products such as Remsima SC (sold as Zympentra in the U.S.), Uplima, Vegzelma, and Stekima was notable, and the sales proportion of these high-profit products expanded significantly from 30% in the same period last year to 53%.
Celltrion expects the upward trend in performance to continue in the second half of the year. Four new products targeting the global market, including Omriclo, Aptozma, Identgent, and Stovoclo-Ocenbelt, are scheduled to be launched sequentially, and the growth in sales and profits is expected to surpass that of the first half.

Efforts to improve profitability are also ongoing. Celltrion is rapidly lowering the previously high cost of goods sold ratio by △exhausting high-cost inventory before the merger △improving production yield (TI) △increasing the operation rate of the third plant △reducing outsourcing of raw material pharmaceuticals △ending amortization of development costs for existing products.
The cost ratio for the second quarter was about 43%, reduced by about 15%p compared to the same period last year and by 4%p compared to the previous quarter, contributing to the expansion of profit margins.
This preliminary results announcement was made about half a month earlier than last year. Celltrion took proactive measures to quickly inform the market of its favorable performance. However, these figures are preliminary results before accounting review, and confirmed results will be announced separately later.
A Celltrion representative stated, "Sales have expanded centered on new high-profit products, achieving the highest quarterly performance ever," adding, "In the second half, we plan to further accelerate growth centered on the launch of high-margin new products in the global market."
Meanwhile, Celltrion is also proactively responding to the recently emerging U.S.-originated pharmaceutical tariff risks. As a domestic pharmaceutical and bio company with a relatively high dependency on the U.S. market, Celltrion has already secured two years' worth of inventory in the U.S. In addition, Celltrion plans to continuously maintain a system to secure two years' worth of inventory at all times, ensuring medium-term supply stability. Furthermore, it has completed contracts with local contract manufacturing (CMO) partners in the U.S. and is enhancing its local production strategy. If products manufactured in the U.S. are classified as domestically produced, they may be excluded from tariffs, making this a realistic response to avoid tariffs.
Celltrion is also considering acquiring a company with production facilities in the U.S.
A Celltrion representative stated, "Despite the protectionist stance of the U.S. market, we will thoroughly establish a response system from short-term to long-term to ensure the stabilization of the global supply chain."

vrdw88@fnnews.com Kang Jung-mo Reporter