Celltrion posts record quarterly sales of W1.39tr, operating profit of W451.8b in Q2

Celltrion posted record quarterly sales and strong earnings in the second quarter, driven by growth in high-margin new products and improvements in its cost structure.

Celltrion disclosed Monday that its consolidated second-quarter sales reached 1.39 trillion won ($948 million) and operating profit came in at 451.8 billion won — up 45% and 86.3%, respectively, from the same period last year. The results marked the second consecutive quarter of record sales. The operating profit margin rose 7.2 percentage points year-on-year to 32.4%, reflecting both top-line growth and improved profitability. Compared with the preliminary figures released July 3, the final results showed sales 93.7 billion won higher and operating profit 21.8 billion won higher.

The company said the results represented structural "qualitative growth" driven not simply by higher volumes but by a portfolio shift toward high-margin new products combined with improved production efficiency. Core biosimilar products — Remsima, Truxima and Herzuma — maintained stable market share, while global sales of the newer, higher-margin biosimilar lineup jumped sharply.

Sales from the new product lineup rose 76% year-on-year, lifting their share of total biotech product sales to 65%. Remsima SC, which surpassed a 32% market share across the five major EU markets, and Zymfentra, which is gaining prescription momentum in the United States, led the growth. Yuflyma maintained its No. 1 market share in Europe while expanding its US distribution network, and Vegzelma was added to the formularies of two major US pharmacy benefit managers. Combined quarterly sales of five products launched in earnest since last year — Idenzelt, Abtuzma, Omlyclo, Stoboclo/Osenvelt and Steqeyma — surpassed 300 billion won, a 49% increase quarter-on-quarter. The company plans to raise the share of new product sales to 70% in the second half.

The cost of goods sold ratio improved to 38% — down 5.4 percentage points year-on-year and 2.1 percentage points quarter-on-quarter. The improvement reflected a better product mix from the higher share of high-margin products, along with the drawdown of high-cost inventory and gains in production yield. As the high margins of new products and the inventory normalization effect take hold in full, operating profit is growing far faster than sales — a classic operating leverage dynamic.

Celltrion also demonstrated a virtuous business cycle by sustaining an operating profit margin above 30% even after expensing all research and development costs for pipeline products in the current period. Beyond its existing 11 biosimilar products, the company plans to develop biosimilars for Ocrevus, Cosentyx, Taltz, Keytruda and Darzalex, completing a portfolio of 18 biosimilars by 2030. It is also advancing drug development in antibody-drug conjugates, multispecific antibodies and obesity treatments.

Celltrion said it aims to exceed its full-year targets of 5.3 trillion won in sales and 1.8 trillion won in operating profit as European public tender supply and US pharmacy benefit manager listing effects gain momentum in the second half. "We have proven our strong cash-generating capacity by achieving an operating profit margin above 30% while continuing to invest in R&D for future growth," a company official said. "We will reinvest the cash generated from our biosimilar business into follow-on products and drug development to surpass our annual earnings targets."