Celltrion said Tuesday that it recorded consolidated revenue of 1.5755 trillion won and an operating profit of 525.3 billion won for the third quarter of this year. Both figures represent all-time highs. The company revised its preliminary earnings, released on the 12th, to final results and announced them on this day.
Celltrion's finalized Q3 results showed an increase in revenue of 75.5 billion won and an operating profit of 15.3 billion won compared to the preliminary earnings. The company explained that this was due to the effects of expanded sales of high-margin new products and improved product mix being reflected more significantly than expected.
Celltrion's Q3 revenue and operating profit increased by 53.1% and 74.3%, respectively, compared to the same period last year. The operating margin rose by 4 percentage points (p) year-on-year to 33.3%. Notably, the company achieved a record-high operating profit even after factoring in research and development (R&D) costs for new drugs and next-generation biosimilars (biologic copy drugs). Celltrion emphasized that its business structure, which combines the growth potential of sold products with the potential of pipeline assets at various research stages, has been firmly established.
Celltrion's Q3 revenue from new product lines was 905.8 billion won, up approximately 74% year-on-year. New product lines accounted for 67% of total biologic product revenue, an increase of 13%p year-on-year and 2%p quarter-on-quarter. The company projected that the share of new product lines will rise to 70% by the end of this year.
As the proportion of high-margin new product lines grows, combined with improved fixed cost efficiency due to increased revenue, the operating profit growth rate exceeded the revenue growth rate by 21.2%p. The operating margin for Q3 2024, the first year after the merger, was 23.6%, a difference of approximately 9.7%p from this quarter.
The combined Q3 revenue for 'Remsima SC' (active ingredient: infliximab, subcutaneous injection formulation, US name: Cyltezo) was 254.2 billion won, up 19% year-on-year. Cumulative revenue through Q3 this year reached 710.4 billion won.
Celltrion is expanding the sales regions for its biosimilar products while continuing to develop new drugs, such as antibody-drug conjugates (ADCs). The structure allows relatively stable cash flow generated from existing businesses to support R&D investment. The company's strategy is to continue expanding investment in new drug development based on robust cash generation capabilities to secure new growth drivers.
Celltrion is also making efforts regarding shareholder-friendly policies. On the 26th, the board of directors decided to make additional purchases of treasury shares (510,404 shares) worth approximately 100 billion won. The cumulative share buyback amount for this year has reached 500 billion won. The company explained that this reflects its commitment to enhancing shareholder value.
A Celltrion official stated, "This year's Q3 results reflect investments in operating global direct sales organizations and R&D for new drugs and next-generation products. It is significant that we achieved record-high revenue and operating profit while continuing to invest in future growth drivers."
The official further added, "Based on the expanded revenue share of high-margin new products and the expansion of sales regions for new product lines, such as the US launch of Omrilo, we will continue our growth momentum in Q4."
in THEBIO
