Celltrion announces largest-ever dividend with cash and stock payouts

Celltrion said Friday that its board of directors approved a simultaneous cash and stock dividend, pending the final approval at the annual general meeting in March. The dividend record date is Dec. 31.

The company plans to distribute 750 won (52 cents) in cash and 0.05 shares of common stock per share. The total cash dividend is estimated at 153.7 billion won, with about 10.25 million dividend shares to be issued. The calculation is based on approximately 205.03 million shares, excluding 12.04 million treasury shares from the total 217 million outstanding shares.

This marks Celltrion’s largest-ever dividend and its first stock dividend in two years.

“This decision reflects our belief that the current corporate value is significantly undervalued compared to its future business plans,” a Celltrion official said. The company highlighted expected synergies from its recent merger, increased biosimilar sales, new product portfolio expansions, and advancements in drug development.

Celltrion also plans to strengthen shareholder returns by increasing its cash dividend. The company aims to distribute up to 30 percent of post-investment profits as cash dividends in the mid- to long-term.

In addition to dividends, Celltrion is pursuing share buybacks and cancellations to boost its valuation and enhance shareholder value. The company plans to cancel approximately 560 billion won worth of treasury shares this month, following cancellations totaling 700 billion won earlier this year. Another 560 billion won cancellation is scheduled for early next year.

Last year, Celltrion repurchased 1.25 trillion won worth of shares, followed by an additional 430 billion won this year. These efforts place the company among the top KOSPI-listed firms for share buybacks and cancellations.