On the 21st, Celltrion announced that it would implement a comprehensive set of market response measures to enhance shareholder value and reassess corporate value, including a bonus issue, additional share buybacks, and share acquisitions by the largest shareholder.

This package follows the review of shareholder value enhancement measures that Celltrion pre-announced on its website on the 19th. The company explained that the intent is to respond to recent changes in market conditions while the company and its largest shareholder jointly work to improve corporate and shareholder value.

First, Celltrion will carry out a bonus issue again this year, following last year. New shares will be allocated at a ratio of 0.05 new share per common share held, with an issuance volume of approximately 10.92 million shares. This is larger than last year’s bonus issue of about 8.49 million shares. The new shares are scheduled to be listed on June 30.

A bonus issue increases the number of shares, which can boost trading activity and investment accessibility. However, it differs in nature from cash returns that immediately raise the value of shareholders’ holdings. Accordingly, market assessments are that the core of this package lies less in the bonus issue itself and more in strengthening market confidence through share buybacks and cancellations and an increase in the largest shareholder’s stake.

Celltrion will additionally repurchase treasury shares worth a total of KRW 100 billion. The planned number of shares to be bought back is about 550,000. Last month, Celltrion canceled 9.11 million treasury shares worth approximately KRW 1.8 trillion. It had also announced a plan to immediately cancel an additional KRW 100 billion worth of treasury shares after repurchasing them.

If the treasury shares to be repurchased this time are also canceled within this year, Celltrion’s total treasury share cancellation for 2024 is expected to reach around KRW 2 trillion and 10 million shares. The company canceled about 3.43 million treasury shares in 2024 and around 4.97 million last year. Including this latest measure, the cumulative cancellation volume for the most recent three years will be approximately 18.56 million shares, or 8.4% of the total number of shares issued, according to the company.

Celltrion Holdings, the largest shareholder, will also move to acquire additional shares. Celltrion Holdings plans to purchase an additional stake in Celltrion worth about KRW 100 billion. Celltrion stated that this measure is intended to signal its commitment to responsible management through an increase in the largest shareholder’s stake and to strengthen confidence in efforts to enhance corporate value.

Employee-level participation will proceed in parallel. The Celltrion Employee Stock Ownership Association plans to conduct the 12th round of employee stock subscription. Employees are reportedly expressing voluntary willingness to participate based on their confidence in the company’s mid- to long-term growth potential and future corporate value.

This package is a continuation of the corporate value enhancement plan previously disclosed by Celltrion, the so‑called “value‑up program.” Celltrion has set a target shareholder return ratio of 40% on a three‑year average basis from 2025 to 2027. The company stated that its shareholder return ratio was 204% in 2024 and 103% last year, exceeding the target. It takes the view that, if large‑scale treasury share cancellations are reflected again this year, it is highly likely to surpass the target once more.

The company cites improved earnings and business stability as the basis for expanding shareholder returns. In the first quarter of this year, Celltrion posted sales of KRW 1.145 trillion and operating profit of KRW 321.9 billion. It said it is expanding its global market share centered on its biosimilar business and is pursuing mid‑ to long‑term growth strategies such as expanding its new drug pipeline.

Given its export‑oriented business structure and treatment‑focused portfolio, Celltrion believes that its earnings volatility stemming from external economic fluctuations is relatively limited. However, it expects that the actual impact of shareholder returns will vary depending on the scale of execution of share buybacks and cancellations, earnings trends, and the competitive landscape in the global biosimilar market.

A Celltrion official said, “Despite recent macroeconomic uncertainties, based on solid fundamentals, Celltrion expects to maintain stable growth in its second‑quarter results as well,” adding, “The company will do its utmost to enhance shareholder value by simultaneously increasing corporate value and implementing consecutive shareholder‑friendly policies.”

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