Celltrion’s Q2 sales hit record-high level thanks to biosimilar growth

Celltrion’s sales in the second quarter of this year surpassed 800 billion won ($580. 8 million), marking the best three-month performance since its founding. 

The company said Wednesday its second-quarter sales reached 874.7 billion won, up 66.9 percent from the same period of last year. It was the first time Celltrion’s quarterly sales exceeded the 800 billion-won mark.

Celltrion attributed its performance to the strong sales of its biosimilar products and the balanced revenue growth of its new products. The biosimilar sector, a core area for the company, generated 774 billion won in sales, up 103.6 percent year-on-year. 

The company’s operating profits in the second quarter fell from a year earlier due to a temporary cost increase caused by accumulated inventories and amortization of intangible assets. However, Celltrion said its operating profit for the second quarter reached 72.5 billion won, recording a hefty 370.8 percent increase from the preceding three months.

“We have resolved the temporary amortization issues from the merger and are poised for growth with forthcoming products,” a Celltrion official said.

The amortization of large-scale intangible asset rights, which had impacted profits following the merger, was completed in the second quarter. With the increase in sales and rapid depletion of existing inventory, the Celltrion official added that the improvement in the cost of goods sold ratio and the subsequent rise in operating profit are expected to accelerate.

Celltrion’s flagship biosimilars, such as Remsima and Truxima, continued to gain traction in major global markets. According to pharmaceutical market research firm IQVIA, Remsima held a 59 percent market share in Europe in the first quarter of this year. 

Specifically, Remsima and its subcutaneous injection-type infliximab, Remsima SC, carved out a combined 75 percent market share in the top five European countries -- Germany, the U.K., France, Italy, and Spain -- with Remsima SC alone achieving a record 22 percent market share. Truxima and Herzuma also showed strong growth, with market shares of 25 percent and 21 percent in Europe. Herzuma also took up a 65 percent share in Japan.

New products launched last year in the U.S., including Yuflyma and Vegzelma,  are also recording significant growth, driven by successful European bids and additional listings with U.S. pharmacy benefit managers (PBMs). Yuflyma’s flexible pricing strategy and product variety have boosted its first-half sales beyond last year’s annual figures. Vegzelma’s market share surged in France, achieving 1.5 times its previous annual sales within two quarters.

“Yuflyma stands out with its range of concentrations, tailored to meet diverse patient needs,” the Celltrion official said. The product is available in various doses of 20mg, 40mg, and 80mg, specifically designed for pediatric patients. “This range of dosage forms is a significant advantage for Yuflyma,” the official said.

Celltrion is also reaping benefits from direct sales of Vegzelma, which boasts a more favorable cost ratio than other products. “This is partly because we don’t have to pay extra fees or commissions that would otherwise be paid through intermediaries,” the official said.

Vegzelma also complements Celltrion’s existing oncology portfolio, which includes Truxima and Herzuma. Celltrion said having Vegzelma alongside these drugs created a “synergistic effect,” enhancing Celltrion’s credibility and strengthening its overall portfolio.

Celltrion’s next-generation product, Zymfentra (the U.S. version of Remsima SC), is also posed for significant revenue growth following its successful launch in the U.S. market. Since its March launch, Zymfentra secured contracts with three major PBMs—Express Scripts, CVS Caremark, and OptumRx—achieving comprehensive coverage spanning about 75 percent of the U.S. insurance market, encompassing private and public insurers. Insurance reimbursements began in June, contributing to cumulative initial sales reaching 2.2 billion won by the end of the current quarter.

"Our key products, including the Remsima series (IV/SC), Yuflyma, and Vegzelma, have achieved record quarterly sales,” Celltrion said. “As Zymfentra began to generate sales in the U.S., we could achieve our highest quarterly performance ever.” 

Encouraged by the record-high revenue, the company is advancing its pipeline and expanding production capabilities, aiming for an 11-product portfolio by 2025. 

Recent approvals for biosimilars, including Omlyclo (biosimilar of Xolair), Eydenzelt (biosimilar of Eylea), and Steqeyma (biosimilar of Stelara), alongside ongoing approvals for Actemra and Prolia biosimilars, will likely facilitate this progress, according to the company. 

Celltion’s third plant, with an annual production capacity of 60,000 liters, is set to begin commercial production this year, enabling flexible small-batch manufacturing to meet diverse pipeline demands.