Celltrion posts record quarterly operating profit of W525.3b on new product surge

Celltrion shattered its own quarterly records in the third quarter of this year, posting all-time highs for both sales and operating profit. The results surpassed even the preliminary figures the company had disclosed earlier, driven by surging global prescriptions of its high-margin new biosimilars — even as it booked a large increase in research and development spending for next-generation drug development.

Celltrion said Tuesday its consolidated sales for the third quarter of 2026 reached 1.58 trillion won ($1.19 billion), with operating profit of 525.3 billion won. Sales rose 53.1 percent year on year, while operating profit climbed 74.3 percent. The operating margin came in at 33.3 percent, up 4.0 percentage points from the same period a year earlier.

The final figures exceeded the preliminary results announced Oct. 12, with sales coming in 75.5 billion won higher and operating profit 15.3 billion won above the initial estimate. The company attributed the beat to steeper-than-expected sales growth in its high-margin new product lineup and an improved product mix. Notably, the record quarterly profit was achieved even after fully expensing large-scale R&D costs for next-generation drug development, including oncology and antibody-drug conjugate treatments, underscoring the strength of its underlying earnings.

The primary driver of the results was the new biosimilar product lineup. Third-quarter sales from new products reached 905.8 billion won, up roughly 74 percent year on year and approaching the 1 trillion won mark for a single quarter. New products accounted for 67 percent of total biopharmaceutical sales, up 13 percentage points from a year earlier and 2 percentage points from the previous quarter. That share is expected to rise to 70 percent by year-end.

The rapid sales expansion also spread fixed costs across a larger revenue base, allowing operating profit growth of 74.3 percent to outpace sales growth of 53.1 percent by 21.2 percentage points. The operating margin stood at 23.6 percent in the third quarter of 2024 — the first year following the merger with Celltrion Healthcare — and has improved by nearly 10 percentage points in two years.

By product, Remsima SC, an autoimmune disease treatment, and its US brand Zymfentra together posted combined third-quarter sales of 254.2 billion won, up 19 percent year on year. Cumulative sales through the third quarter reached 710.4 billion won, putting annual sales of 1 trillion won within reach. Yuflyma, another autoimmune treatment, generated sales of 183.2 billion won, up 27 percent year on year. Yuflyma held the top position in the European market with a 22 percent share in the second quarter, based on IQVIA data.

Omliclor, an allergy treatment, has established itself as the company's next major cash cow. Cumulative third-quarter sales of Omliclor reached 320.5 billion won, a 542.3 percent surge from 49.9 billion won in the same period a year earlier. The product captured more than 90 percent market share in Spain, one of the five major EU markets, as country-by-country tender and direct-sales strategies paid off. Omliclor also launched in the United States earlier this month as the first mover in the market, securing the full set of indications identical to the originator product, interchangeability status, and all three dosage forms — setting the stage for strong additional growth in the fourth quarter.

In addition, Abtuzma, an autoimmune treatment, recently signed an exclusive supply agreement with a major US healthcare company, securing reimbursement coverage ahead of rivals. By connecting directly to both the insurance market through pharmacy benefit managers and the supply chains of multiple large hospital networks, the company expects US prescriptions to ramp up significantly from the fourth quarter.

"We renewed our quarterly records for both sales and operating profit while actively investing in our global direct-sales organization and next-generation drug R&D," a Celltrion official said. "We will sustain strong earnings growth in the fourth quarter, backed by the rising share of high-margin new products, Omliclor's successful entry into the US market, and Abtuzma's expanded access to hospital distribution networks."