Celltrion’s Quarterly Operating Profit Tops 500 Billion Won for First Time
Celltrion reported preliminary third-quarter revenue of 1.5 trillion won and operating profit of 510 billion won, extending its run of record quarterly earnings as higher-margin biosimilars and lower costs strengthened profitability.
South Korean biopharmaceutical company Celltrion has posted quarterly operating profit above 500 billion won for the first time, extending a run of record results as sales of higher-margin biosimilars expanded and production costs declined.
Celltrion said Monday that preliminary consolidated revenue reached 1.5 trillion won, or about $1.1 billion, in the July-to-September quarter. Operating profit was 510 billion won, equivalent to roughly $374 million. Revenue rose 45.8 percent from a year earlier, while operating profit climbed 69.2 percent.
The result marked Celltrion’s third consecutive quarter of record earnings. Its operating margin increased by 4.7 percentage points from the same period last year to 34 percent, indicating that profit grew faster than sales.
The company had set progressively higher quarterly operating profit goals in a business outlook released earlier this year: 300 billion won for the first quarter, 400 billion won for the second and more than 500 billion won for the third. It said it exceeded each target.
Celltrion attributed the performance to a more profitable product mix, with newer biosimilars accounting for a larger portion of sales, as well as continuing efforts to streamline production and reduce costs. Sales grew across both established and recently launched products in major markets including Europe and the United States.
The company said the direct-sales network built around its established medicines is increasingly supporting the commercial rollout of newer biosimilars. That infrastructure allows Celltrion to use existing market access and distribution capabilities as it adds products to its portfolio.
Celltrion expects its growth momentum to continue in the fourth quarter, supported by further sales expansion and a higher share of profitable products. The company identified the US launch of Omlyclo as one of its new growth drivers.
Omlyclo, a biosimilar allergy treatment, entered the US market in October as the first biosimilar of its kind available there. Celltrion expects the product to begin contributing to fourth-quarter results. The company also anticipates increased supply in Europe.
Celltrion said it plans to keep increasing the contribution of high-margin next-generation products while optimizing costs. The company is aiming to use the US rollout of Omlyclo and higher European supply to support its fourth-quarter and full-year business targets.