Celltrion marks largest quarterly sales in Q1 thanks to biosimilar growth

Celltrion said it recorded consolidated first-quarter sales of 737 billion won ($538 million), marking a significant 23.3 percent increase from the same period last year, thanks to strong biosimilar sales. 

It is the first time that the company's quarterly revenue surpassed 700  billion won.

Operating profit, however, dropped significantly to 15.4 billion won, down 91.54 percent from a year earlier. Net profit also went down by 87.5 percent year-on-year to 20.8 billion won. 

The company stressed that the decline in operating profit was influenced by expected temporary factors related to its recent merger with Celltrion Healthcare, such as increased production costs and intangible asset amortization.

Despite these challenges, Celltrion demonstrated strong growth as a newly merged entity, particularly in its primary biosimilar business, which achieved sales of 651.2 billion won, a 57.8 percent growth compared to the previous year.

Notably, the Remsima product line, its autoimmune disease treatment, maintained robust market penetration in Europe.

According to IQVIA, a drug market research firm, the intravenous (IV) form of Remsima captured a 61 percent market share in five European markets – the U.K., Germany, France, Spain, and Italy -- as of the end of last year.

The subcutaneous (SC) version, marketed as Remsima SC, achieved a 21 percent market share,  in those five countries combined. 

Celltrion's expectations are high for its newly launched Zymfentra, the U.S. version of Remsima SC. Within two weeks of its U.S. launch in March, Zymfentra was included as a preferred drug in Express Scripts' formulary, one of the three major pharmacy benefit managers (PBMs) in the U.S.

The company stressed that this achievement allows for broader market penetration, covering around 40 percent of the U.S. private insurance market.

Aside from Remsima, Celltrion reported continued strong market shares for its other biosimilars.

Truxima, a biosimilar for treating blood cancers such as non-hodgkin's lymphoma (NHL) and chronic lymphocytic leukemia (CLL), achieved 29 percent market share in the U.S. and 24 percent in Europe, while Herzuma, an anticancer drug biosimilar used to treat breast cancer and gastric cancer, recorded a 65 percent share in Japan and a 19 percent share in Europe.

Additionally, new biosimilars like Yuflyma and Vegzelma have entered their growth phases following expanded bids in Europe and increased inclusion in U.S. PBM formularies.

Looking forward, Celltrion explained that it is focusing on securing a future pipeline of biosimilars for blockbuster drugs like Stelara (CT-P43), Actemra (CT-P47), Eylea (CT-P42), Xolair (CT-P39), and Prolia (CT-P41). The company plans to increase its biosimilar portfolio from six to eleven by 2025.

Its new third production plant, slated to begin operations this year, is expected to bolster production capacity. With a 60,000-liter production capacity, it will complement the existing plants to achieve a total capacity of 250,000 liters.

The company also aims to reduce its cost of sales to 30 percent by the end of this year, enabling increased profitability and aggressive bidding in international markets.

"Despite predictions from analysts of a slow start this year due to the merger, we've achieved record quarterly sales thanks to our growing biosimilar business," a company official said. "With the successful launch of Zymfentra in the U.S. and continued growth of existing products, Celltrion is poised for a year of remarkable growth and renewed success."

Celltrion shares went up 2.3 percent to 194,100 won, as of 10.21 a.m. on Friday.