Celltrion nears the '5 trillion won in sales' era, with growth forecast through 2028

[Financial News] Celltrion posted record results for three consecutive quarters through Q3 this year, bringing it close to the 5 trillion won annual revenue mark. As increased sales of high-margin biosimilars drive profit growth, industry forecasts suggest the growth trend could continue through 2028, supported by new products gaining a foothold in the market.
 According to industry sources on the 14th, Celltrion posted preliminary consolidated results for Q3 this year, with revenue of 1.5 trillion won and operating profit of 510 billion won. Revenue rose 45.8% and operating profit 69.2% from the same period a year earlier. Its operating margin was 34%, up 4.7 percentage points from a year earlier. It was the first time in the company's history that quarterly operating profit had exceeded 500 billion won.
 The improved results came from higher sales of high-margin follow-on products, in addition to steady sales of existing products. Production efficiencies and improvements to the cost structure also contributed to higher profitability. Celltrion exceeded all the quarterly operating profit targets it set at the start of the year: 300 billion won for Q1, 400 billion won for Q2 and 500 billion won for Q3.
 Market expansion for new biosimilars is key to medium- and long-term growth. Rising prescription volumes for follow-on products such as Steqeyma and Omlyclo, along with increased market shares in the U.S. and Europe, are expected to support revenue growth and improved profitability.
 Lee Ji-won, an analyst at Heungkuk Securities, forecast that biosimilar sales growth would continue in 2027–2028, citing increased prescription volumes for new products and rising market shares in major markets. Bae Yun-gi, an analyst at Daiwa Securities, also said that a growing share of revenue from high-margin new products was driving profit improvement. Growth in the biosimilar market, the strategy for launching new products, in-house production and research and development (R&D) capabilities were also cited as factors supporting the company's medium- to long-term competitiveness. Daiwa Securities named Celltrion its top pick in the domestic healthcare sector and maintained its 'Buy' rating and 290,000 won price target.
 However, for the outlook to translate into results, greater market penetration and market share for new products must lead to actual revenue growth. Whether increased sales of each product will also improve profitability is another key question.
 Changes in the competitive landscape for biosimilars are another factor that will shape Celltrion's medium- and long-term results. As patents on originator drugs continue to expire, opportunities for follow-on biosimilars to enter the market are expanding. But as the number of competing products grows, competition over prices and market share could also intensify. This makes it increasingly important to establish new products in the market quickly and secure an initial market share.
 Celltrion is broadening its growth base by adding new products to the sales network for its existing products. In the U.S., it is using a direct-sales system to improve its ability to respond to the market, while aiming to strengthen cost competitiveness by drawing on its in-house capabilities from development through production and sales. The company has also announced plans to increase the number of its biosimilars sold in global markets from 11 today to 41 by 2038.
 The improved results have also raised expectations for greater shareholder returns. Celltrion plans to use about one-third of its net income for cash dividends, share repurchases and cancellations. The company plans to repurchase a total of 2,135,262 shares this year, worth approximately 400 billion won. It recently approved the cancellation of treasury shares worth about 100 billion won.
 A Celltrion official said, "We will sustain our growth by expanding sales of high-margin follow-on products and improving our cost structure," adding, "We will also continue our shareholder-return policy so that the results of our growth can enhance shareholder value."

[email protected] Jung Sang-hee Reporter