Celltrion announced on the 9th that its consolidated operating profit for the first quarter of this year reached 149.4 billion won, up 870% from the same period last year. During the same period, sales increased by 14% compared to the previous year, reaching 841.9 billion won. This represents the highest quarterly performance in history.
The company explained that it achieved record performance in the first quarter as the growth of major products continued globally. In particular, the sales of follow-up products, including Remsima SC (ingredient name: infliximab, subcutaneous injection), Uplima (adalimumab), and Vegzelma (bevacizumab), increased by more than 62% compared to the same period last year, driving sales growth in the first quarter.
The significant increase in operating profit was analyzed as a result of the expiration of amortization of intangible assets, including rights arising from past mergers, and simultaneous improvements in inventory and sales integration. The cost of goods sold ratio is improving as the high-cost inventory resulting from the merger is quickly exhausted, along with expanding sales of profitable follow-up products.
Celltrion pointed out that the acceleration of prescriptions for follow-up products in major global countries, including the United States and Europe, is also a background for the growth in performance. According to the market research agency IQVIA, Remsima SC recorded a 25% market share in the five major European countries (Germany, Spain, the United Kingdom, Italy, and France) as of the last quarter of last year.
Another autoimmune disease treatment, Uplima, recorded first-quarter sales of 108 billion won, surpassing 100 billion won for the first time in a first quarter. The antitumor biosimilar Vegzelma, although launched the latest in Europe, maintained its top prescription spot with a 28% market share as of the last quarter of last year.
Celltrion's strategy is to continue quantitative and qualitative growth through new product launches and improvements in the cost of goods sold ratio this year. In particular, four products (Omniclone, Identelt, Aptozma, Stoboclo & Osenbelt) scheduled for release in the second half of this year are expected to have high revenue potential as they enter a newly created biosimilar market.
The most recently launched Steqeyma is rapidly expanding its market in the United States, the largest pharmaceutical market in the world. Celltrion signed a prescription listing contract with one of the three major pharmacy benefit managers (PBM) that occupy 80% of the market just one month after the U.S. launch of Steqeyma.
A Celltrion official noted, 'With the growth of follow-up products such as Remsima SC, along with the expiration of intangible asset amortization and improvements in inventory-sales mix, operating profit has improved significantly by more than 870%, establishing a foundation for quantitative and qualitative growth this year.' They added, 'Along with the launch of high-revenue new products in the second half of the year, the development of new drugs, which will be the center of new growth engines, is also progressing smoothly, and we will concentrate our efforts company-wide to ensure continued performance growth.'