Celltrion's 2024 revenue hits record high on blockbuster drug growth, portfolio expansion

Celltrion achieved a record-high annual revenue of 3.56 trillion won ($2.48 billion) in 2024, up 63.5 percent from the previous year. The sales growth was fueled by the strong performance of its blockbuster biologics, increasing sales in key global markets, and the expansion of its biosimilar portfolio.

However, the company’s operating profit fell 24.48 percent on-year to 492 billion won.

Still, in the fourth quarter alone, revenue surged 178 percent year-on-year to exceed 1 trillion won for the first time in a single quarter, driven by balanced growth across its biologics segment and additional revenue from contract manufacturing organization (CMO) services. The operating profit for the quarter skyrocketed 967.4 percent to 196.4 billion won ($148 million) as merger-related cost burdens eased.

A key driver behind Celltrion’s solid earnings was the outstanding performance of its flagship biosimilars, including Remsima, Truxima, and Herzuma, alongside the rapid uptake of newer products such as Remsima SC (marketed as Zymfentra in the U.S.), Yuflyma, and Vegzelma.

The company’s biologics division generated 3.11 trillion won in annual revenue, marking a 57.7 percent increase from the previous year. Notably, sales from its newer portfolio expanded from 26.1 percent to 38.4 percent of total revenue, reinforcing its long-term growth potential.

Celltrion’s market influence was particularly pronounced in Europe and North America. In Europe, revenue reached 1.55 trillion won, driven by strong sales from new product launches, while North American revenue surpassed 1 trillion won as Truxima, Yuflyma, Zymfentra, and Vegzelma continued to gain traction alongside the steady performance of Inflectra.

Product-wise, Remsima IV formulation surpassed 1 trillion won in annual sales for the first time, securing its position as a global blockbuster. According to market research firm IQVIA, Remsima IV held a commanding 62 percent share of the European market as of the third quarter of last year.

When combined with Remsima SC, market shares in key European countries reached dominant levels -- 88.8 percent in the UK, 80 percent in France, 75.8 percent in Spain, and 73.8 percent in Germany -- with Remsima SC alone capturing 25 percent of the European Big 5 market.

In the U.S., Zymfentra rapidly gained momentum, securing formulary listings with insurers covering approximately 90 percent of the market. Prescription volumes have significantly increased, supported by direct hospital sales efforts and nationwide online and television advertising campaigns aimed at boosting patient awareness and preference.

Truxima maintained a robust 30 percent market share in both the U.S. and Europe, while Herzuma dominated the Japanese market with a 72 percent share and continued to lead in Europe with 29 percent.

Yuflyma’s market penetration grew steadily in Europe, and in the U.S., Celltrion leveraged a dual wholesale acquisition cost (WAC) pricing strategy to capture both public and private insurance markets, driving a 2.4-fold increase in sales to 349.1 billion won in 2024.

Meanwhile, Vegzelma emerged as the market leader in Europe with a 29 percent share, surpassing both the originator and competing biosimilars, leading to a 4.5-fold year-on-year revenue surge to 221.2 billion won.

Looking ahead to 2025, Celltrion aims to continue its momentum by expanding its product lineup, improving cost structures, and enhancing operational efficiencies.

The company expects a significant reduction in the cost of goods sold (COGS) as it depletes high-cost inventory, scales up production at its third plant, and benefits from the amortization of development costs for existing products.

The merger has already led to a sharp decline in COGS from 63 percent in the fourth quarter of 2023 to 45 percent in the same period in 2024, with expectations for further reduction to the 20 percent range by the end of 2025.

With its biosimilar lineup now fully established at 11 products, Celltrion is targeting 5 trillion won  in revenue this year.

Beyond biosimilars, Celltrion is actively pursuing new growth drivers, including drug development, and contract development and manufacturing organization (CDMO) services.

By 2030, the company plans to build a biosimilar portfolio of 22 products, adding pipeline candidates such as biosimilars for Ocrevus, Cosentyx, Keytruda, and Darzalex. The company also outlined a clinical roadmap to submit investigational new drug (IND) applications for 13 novel drug candidates by 2028, recently making its first submission for the antibody-drug conjugate (ADC) CT-P70 within weeks of announcing its R&D plans.

Celltrion also announced last year its plans to strengthen its CDMO business by establishing its subsidiary, Celltrion BioSolutions, which will provide full-cycle drug development and manufacturing services for biotech companies and startups.

“2024 marked the first full year of operations following our merger, during which we realized strong external growth through the global expansion of our biosimilar portfolio,” a Celltrion representative stated. “This year, we will focus on both quantitative and qualitative growth through new product launches, cost structure improvements, and efficiency optimizations.”