“Celltrion’s Time Is Coming” ... Why Its Price Target Was Raised 25%

[Financial News] Celltrion is expected to receive a valuation re-rating as the global biosimilar market grows. Biosimilars are copy versions of biologic drugs.
Mirae Asset Securities maintained its “Buy” rating on Celltrion on the 11th and raised its price target from 280,000 won to 350,000 won.
Mirae Asset Securities highlighted revenue growth from new biosimilar products and improved profitability resulting from a better product mix. It raised its estimates for next year’s revenue and operating profit by 16% and 22%, respectively.
Kim Seung-min, an analyst at Mirae Asset Securities, said, “We applied a premium of about 15% to the 25x multiple for the biosimilar business of global biosimilar company Sandoz. Celltrion’s share price currently trades at around 18x EV/EBITDA based on next year’s estimated results, making it undervalued compared with Sandoz.”
The analyst also expected Celltrion to benefit from growth in the biosimilar market. Sandoz has put the market size of drugs whose patents expire in the biosimilar market between 2026 and 2040 at $550 billion, and has described the coming 10 years as the “Golden Decade.”
Kim noted, “The expiration of patents on major biologic drugs, incentives for payers to switch to biosimilars, and the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) simplifying development regulations will support market growth. Biosimilars account for about 90% of Celltrion’s sales, compared with 30% at Sandoz, so Celltrion will benefit more directly from industry growth.”
He added, “Celltrion’s biologic product sales are expected to grow at a compound annual rate of 28.4% from 2025 to 2027, exceeding the 16.3% growth rate of Sandoz’s biosimilar division. Celltrion’s EBITDA margin next year is also estimated at 40.7%, higher than the 33.2% projected for Sandoz’s biosimilar division.”

[email protected] Seo Min-ji Reporter