Celltrion said Wednesday that it has strengthened its growth drivers through business strategy diversification in Europe, a key global pharmaceutical market.
In Europe, Celltrion is expanding its sales market, which had been centered on hospitals and tenders, to include pharmacy channels, and securing the product lines of acquired companies as new revenue sources. Additionally, it is accelerating the expansion of sales for high-margin follow-on products through local direct sales networks and country-specific customized marketing strategies.
Based on this, Celltrion set a new record for its highest quarterly performance in the third quarter of this year. On a consolidated basis, Q3 revenue was 1.5 trillion won, and operating profit was 510 billion won. The company aims to maintain its growth momentum in the fourth quarter as well.
Strengthened Distribution Network Through Acquisitions of France's Gifrer and Switzerland's iQone
Following its acquisitions of French healthcare company "Gifrer" and Swiss distribution pharmaceutical company "iQone," Celltrion has pursued business diversification by expanding its European distribution network and product portfolio.
In particular, leveraging the Gifrer network, which boasts a pharmacy sales network of over 9,000 locations across France and a hospital supply chain of approximately 800 facilities, Celltrion plans to fully launch pharmacy sales for biosimilar (biologic copy drug) products, including the bone disease treatment "Stoboclo-Ocenbelt" (active ingredient: denosumab).
Furthermore, by adding over 140 types of over-the-counter (OTC) drugs, pharmacy drugs (DM), and health functional foods secured through the Gifrer acquisition as new revenue sources, the company has broadened its business scope.
Celltrion explained that it diversified its revenue base by integrating the strengthened distribution network and product portfolio obtained through local acquisitions into its existing operations.
Continued Success in Winning Bids for High-Margin Follow-On Products
Celltrion emphasized that its direct sales network, operated primarily through its European subsidiary, and country-specific customized marketing strategies have driven sales growth for high-margin follow-on products.
The company is expanding market entry for new products through sales activities that reflect each country's healthcare system, market demand, and competitive environment.
The treatment for chronic spontaneous urticaria and allergic asthma, "Omyclo" (active ingredient: omalizumab), launched in Europe as a "first mover" (the first product to be released), recorded a market share of approximately 90% in Spain as of last July. It also achieved sales performance exceeding business targets in Italy. In Germany, the company is seeking to expand prescriptions through customized supply strategies, such as rapidly releasing a 300-milligram (mg) dosage product tailored to local demand.
The autoimmune disease treatment "Aptozuma" (active ingredient: tocilizumab) successfully secured major bids in the Netherlands, where the European Medicines Agency (EMA) is located, including from large pharmaceutical purchasing groups such as IZAAZ and ICZON, the southeastern regional pharmaceutical purchasing group. The company secured a supply volume equivalent to approximately 58% of the local tocilizumab market.
Outlook for Continued Earnings Growth in Q4
Celltrion reported that its European business performance is growing as prescriptions for high-margin follow-on products increase.
The autoimmune disease treatment "Remsima SC" (active ingredient: infliximab) recorded a share of approximately 32% in the top five European countries (EU5) as of the first quarter of this year, marking its highest record on a quarterly basis to date.
The treatment for metastatic colorectal cancer and breast cancer, "Vegzelma" (active ingredient: bevacizumab), has maintained its No. 1 market position in Europe for 21 consecutive months with a share of approximately 28%. The market share for the autoimmune disease treatment "Uplima" (active ingredient: adalimumab) is approximately 22%.
A Celltrion official said, "In the European market, we are enhancing the competitiveness of our existing biologic sales while expanding distribution channels and product portfolios to create new growth opportunities," adding, "Through country-specific marketing strategies tailored to local market characteristics and the expansion of sales for high-margin follow-on products, we will continue revenue growth and profitability improvements in the fourth quarter of this year."
in THEBIO
