Celltrion, which recently obtained Europe’s approval for breast cancer treatment antibody biologic drug Herzuma (trastuzumab), is expected to see an annual revenue exceeding 3 trillion won ($2.76 billion) in 2022, an analyst said Monday.
Last Friday, the company received a positive opinion from the European Medicines Agency (EMA)’s Medical Products for Human Use (CHMP) for Herzuma. The analyst forecast that Herzuma, together with autoimmune diseases treatment Remsima (infliximab) and blood cancer drug Truxima (rituximab), will buoy Celltrion’s sales growth.
As of 2016, the company’s annual revenue exceeded 670 billion won with operating profit of 249 billion won.
“Celltrion’s annual revenue is expected to double from 1.2 trillion won in 2018 to 2.5 trillion won in 2020. By 2022, it is likely to exceed 3 trillion won,” said Han Byung-hwa, an analyst at Eugene Investment & Securities. “If you see the company based on the 2017 revenue, which is less than 1 trillion won, Celltrion has not even started its growth yet.”
The issue of distorted supply and demand of Celltrion’s shares, which has made the company underrated so far, will be resolved soon after it moves from the Kosdaq to Kospi, Han said.
He also said Celltrion’s Herzuma would be competing on a par with Samsung Bioepis’ breast cancer treatment Ontruzant, which received European approval last month. In Europe, biddings at hospitals usually begin in the second quarter, in which Herzuma is expected to obtain approval, according to Han.
“In Europe, hospitals select drugs through biddings from the second quarter. It is almost certain that Herzuma will get sales approval in Europe in the first quarter next year,” Han said. “Herzuma is also expected to get the U.S. FDA approval in the second half of next year. But as the first-FDA-approved breast cancer treating biosimilar Ogivri had some issues with the approval of production facilities, Ogivri’s market penetration will have limits.”
Thus, Herzuma will be able to enjoy a first-mover advantage in the Herceptin biosimilars market, Han added.
After obtaining the CHMP’s positive opinion for Herzuma on Saturday, Seoul time, Celltrion’s shares were trading at 210,800 won per share as of Monday noon, up 400 won from the previous trading day. On Dec. 13, the stock price rose by 4,400 won from the previous day. On Dec. 11, it went up by 8,900 won from the previous day.
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