Celltrion’s 4Q earnings forecast via U-Plyma

On the 10th, Hana Securities predicted good results from the world’s first Humira (copy drug) high concentration biosimilar ‘U-Pyma (inflammatory bowel disease, rheumatoid arthritis)’ from the fourth quarter of this year. Accordingly, we maintain our Buy rating and target price of KRW 250,000.

Celltrion’s consolidated sales and operating profit for the third quarter of this year were 645.6 billion won and 213.8 billion won, up 60.6% and 28.1%, respectively, compared to the same period last year. In particular, sales were significantly higher than the market expectation of 588 billion won.

Park Jae-kyung, a researcher at the securities firm, explained, “A major factor in the increase in Celltrion’s sales is that Celltrion USA, a consolidated subsidiary of Celltrion, was acquired by Celltrion Healthcare, and earned about 100 billion in unearned profits realized to the sales are recognized as sales.” This is due to one-off factors and improved profitability.

In addition, the steady profitability of Remsima IV and Herzuma, Celltrion’s lead biosimilar products, was a major factor in Celltrion’s sales expansion. Remsima IV sales in the third quarter were 219.5 billion won, up 88.3% from the previous year, and Herzuma sales in the third quarter were 77.5 billion won, up 863.8% from the same period.

Celltrion intends to further consolidate its leading position in the inflammatory bowel disease market by establishing ‘U-Pyma’ in the European market. Researcher Park said, “The FDA approval of U-Plyma is expected to be possible within this year, and the launch of Beg-Gelma and U-Plyma in the United States is scheduled for 2023. .

Hyeon-joo Lee, reporter at Hankyung.com wondering_hj@hankyung.com

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