Corporate Logo(source: celltrion.com)
On April 22, Daishin Securities maintained a “Buy” rating and a target price of 240,000 KRW for Celltrion (068270), noting that while the company’s first-quarter results may fall short of elevated market expectations, its overall growth trajectory is likely intact.
Daishin estimated Celltrion’s Q1 2025 revenue at 836.3 billion KRW and operating profit at 150.7 billion KRW. This would represent increases of 13.5% and 876% year-on-year, respectively. However, the estimated operating profit falls below the current consensus forecast.
Analyst Lee Hee-young explained, “While newly launched biosimilar products such as Yuflyma (adalimumab) and Vegzelma (bevacizumab) likely delivered strong growth, a decline in sales of existing products such as Remsima IV may have led to results below consensus.” She added, “Operating profit may have been weighed down by higher costs related to increased use of contract manufacturing organizations (CMOs), fixed cost burdens due to preparation for the third plant’s FDA inspection, and raw material (DS) procurement in response to U.S. tariff measures.”
Despite the softer-than-expected Q1, Daishin maintained a positive outlook on Celltrion’s growth prospects. The firm noted the continued rollout of new biosimilar products, expected improvement in profit margins driven by declining cost ratios and the expiry of purchase price allocation (PPA) amortization, sustained growth in European markets, and increasing prescriptions of Zymfentra.
The firm also noted that recent healthcare policy directions under U.S. President Donald Trump may not be unfavorable for Celltrion. “The executive order signed by President Trump aimed at reducing domestic healthcare costs includes measures such as reviewing site-neutral drug pricing policies and streamlining the biosimilar approval process,” Lee said. “If the gap in drug prices between hospitals and clinics narrows, and clinic-based prescriptions increase, subcutaneous (SC) formulations like Zymfentra could benefit.”
*[KOSPI]Celltrion(068270) engages in the development and production of various therapeutic proteins, including anticancer drugs, based on biotechnology and animal cell mass culture technology. Market capitalization is 35.16 trillion won (as of April 21, 2025, closing price).
Corporate Logo(source: celltrion.com)
On April 22, Daishin Securities maintained a “Buy” rating and a target price of 240,000 KRW for Celltrion (068270), noting that while the company’s first-quarter results may fall short of elevated market expectations, its overall growth trajectory is likely intact.
Daishin estimated Celltrion’s Q1 2025 revenue at 836.3 billion KRW and operating profit at 150.7 billion KRW. This would represent increases of 13.5% and 876% year-on-year, respectively. However, the estimated operating profit falls below the current consensus forecast.
Analyst Lee Hee-young explained, “While newly launched biosimilar products such as Yuflyma (adalimumab) and Vegzelma (bevacizumab) likely delivered strong growth, a decline in sales of existing products such as Remsima IV may have led to results below consensus.” She added, “Operating profit may have been weighed down by higher costs related to increased use of contract manufacturing organizations (CMOs), fixed cost burdens due to preparation for the third plant’s FDA inspection, and raw material (DS) procurement in response to U.S. tariff measures.”
Despite the softer-than-expected Q1, Daishin maintained a positive outlook on Celltrion’s growth prospects. The firm noted the continued rollout of new biosimilar products, expected improvement in profit margins driven by declining cost ratios and the expiry of purchase price allocation (PPA) amortization, sustained growth in European markets, and increasing prescriptions of Zymfentra.
The firm also noted that recent healthcare policy directions under U.S. President Donald Trump may not be unfavorable for Celltrion. “The executive order signed by President Trump aimed at reducing domestic healthcare costs includes measures such as reviewing site-neutral drug pricing policies and streamlining the biosimilar approval process,” Lee said. “If the gap in drug prices between hospitals and clinics narrows, and clinic-based prescriptions increase, subcutaneous (SC) formulations like Zymfentra could benefit.”
*[KOSPI]Celltrion(068270) engages in the development and production of various therapeutic proteins, including anticancer drugs, based on biotechnology and animal cell mass culture technology. Market capitalization is 35.16 trillion won (as of April 21, 2025, closing price).