Celltrion is continuing its rapid growth by confirming record-breaking sales and achievements from mergers. The company is expanding its sales scale through stable prescriptions of major products and the market establishment of new products, while maximizing profit margins through improved sales cost ratios following mergers, thereby strengthening its internal stability.

It is also making bold investments to strengthen future competitiveness, such as securing research and development and production facilities. The company is accelerating the development of new drugs and subsequent biosimilars, and the acquisition process of Eli Lilly’s production facilities in the United States is nearing completion. By maximizing product competitiveness and production capacity in the global market, it is expected to quickly achieve its goal of becoming a ‘global big pharma.’

High-profit new products grow over 50%… 3rd quarter sales and operating profit soar

Celltrion recently announced that it recorded consolidated sales of KRW 1.026 trillion and an operating profit of KRW 301 billion in the last 3rd quarter. Compared to the same period last year, sales increased by 16.3% and operating profit by 44.9%, achieving the highest-ever 3rd quarter sales and quarterly operating profit. For the cumulative 3rd quarter of this year, sales increased by 13.5% to KRW 2.8294 trillion, and operating profit increased by 134.4% to KRW 692.9 billion compared to the same period last year, with expectations from securities firms and others that annual sales will easily exceed KRW 4 trillion and operating profit KRW 1 trillion.

This performance is attributed to the stable sales of major products in key global markets such as the United States and Europe, and the expanded market entry of profitable new products. High-profit new products, including the autoimmune disease treatment ‘Remsima SC,’ recorded a 51% increase in sales compared to the same period last year, driving the overall sales expansion. The sales proportion of these high-profit new products, which was 42% of the total in the 3rd quarter of last year, expanded to 54% in the 3rd quarter of this year, significantly contributing to the improvement in profit margins.

Notably, the sales cost ratio recorded 39%, a 9 percentage point decrease from the same period last year, successfully entering the 30% range, confirming the improvement effects from the merger with Celltrion Healthcare. A decrease in the sales cost ratio is considered a representative indicator of increased operating and net profits for a company. Celltrion expects that continuous cost improvements and increases in operating profit through direct sales systems will further expand, given the improvements in cost ratios achieved through various aspects such as the merger, depletion of high-cost inventory, and improved production yields.

Progress in securing Eli Lilly production facilities in the U.S.… Actively responding to global demand

While Celltrion is achieving record-breaking performance and strengthening its internal stability, it is also smoothly securing a global production base in the United States, the world’s largest pharmaceutical market. Last month, Celltrion signed a main contract to acquire Eli Lilly’s biopharmaceutical production facilities, which are currently operational in Branchburg, New Jersey, and plans to complete the acquisition process within the year.

The company plans to invest a total of KRW 700 billion, including the acquisition cost and initial operating expenses, and intends to pursue expansion with an additional investment of at least KRW 700 billion. Once the expansion is completed, the facility will become Celltrion’s first global production base, with a production capacity 1.5 times that of the Songdo Plant 2 in Incheon (90,000 liters capacity).

Through bold investments, Celltrion has managed to exempt its main products supplied in the U.S., as well as future products, from the influence of U.S. pharmaceutical tariffs. Additionally, by acquiring excellent production facilities in the U.S., the world’s largest pharmaceutical market, the company is expected to significantly save time and costs compared to building a plant from scratch and strengthen its influence in the U.S. market through synergies with its local direct sales network.

This acquisition of global production facilities is also significant as it proactively responds to the rapidly increasing global pharmaceutical supply demand of Celltrion. In addition to the continuous growth in demand for existing products in major global countries, Celltrion is obtaining approvals for new products in new areas such as ophthalmic diseases, bone diseases, and skin diseases, in addition to existing autoimmune disease treatments and anticancer drugs. Last year, the company completed the establishment of a portfolio of 11 biosimilar products in Korea and Europe, and this month, it completed the registration of 11 products with the approval of the ophthalmic disease treatment ‘Eyedent’ by the U.S. Food and Drug Administration (FDA).

In addition to continuing the development of subsequent biosimilar products, Celltrion is also pursuing new drug development in its core antibody field, including antibody-drug conjugates (ADCs) and multi-antibodies, so the strengthening of production capacity to support the global market supply of these products is expected to continue.

A Celltrion representative stated, “This year, the company is achieving record-breaking performance due to product growth and reduced cost ratios from mergers, leading to rapid growth,” and added, “We will do our best to expand product competitiveness and strengthen production capacity to gradually increase our influence in the global market and leap forward as a global big pharma.”

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