Celltrion achieved highest ever sales in Q2

Successful launch of new biosimilar products

In Q2 2024, Celltrion reached sales of KRW 800 billion for the first time in the company's history…up 66.9% from last year

Biosimilar sales amounted to KRW 775 billion, 103.6%↑YoY… has completed amortization of the asset rights following merger

Signed contracts with the top 3 PBMs in the U.S. for Zymfentra…anticipates sales expansion following the successful market entry

Celltrion has topped quarterly sales of KRW 800 billion the first in the company's history, driven by the successful sales of newly launched biosimilar product.

 

According to Celltrion's consolidated income statement on August 7th, its sales this year amounted to KRW 874.7 billion, up 66.9% year over year (YOY).

 

This figure is a record high in quarterly sales.

 

Increased sales are attributed to successful sales of existing biosimilar products and solid increased sales of latecomer products, leading to solid sales performance.

 

In particular, the company's primary biosimilar business recorded sales of KRW 775 billion in Q2, up 103.6% YoY.

 

The company's operational profit in Q2 was KRW 72.5 billion.

 

Due to the temporary rise in cost rate from inventory accumulation and amortization of intangible assets, operating profit decreased compared to the previous year.

 

However, it increased by 370.8% compared to the last quarter.

 

Celltrion's sales in the second quarter (source: Celltrion IR presentation report).

Expanded biosimilar sales are attributed to each product's increased market share.

 

According to IQVIA data, Remsima recorded 59% of the European market in Q1 of this year.

 

In Q1, a subcutaneous (SC) formulation of Remsima, Remsima SC, maintained 75% of the market share in five major European countries (Germany, England, France, Italy, and Spain).

 

Remsima SC alone reached 22% of the market share and also reached 87.5% in England, 78% in Spain, and 72.7% in France.

 

Additionally, through stabilizing direct sales in Europe and successful bids in major countries, Truxima and Herzuma achieved market shares of 25% and 21% respectively in Europe.

 

Celltrion anticipates continued growth in market share as the direct sales systems in Europe and other major global markets stabilize and as success in national bids increases.

 

Celltrion's detailed report on sales in the second quarter (source: Celltrion's IR presentation report).

Zymfentra under contract with one of the top three PBMs in the U.S….anticipating increased sales in the second half of the year Celltrion also anticipates increased sales with the growth of Zymfentra (U.S.

 

product name of Remsima SC).

 

Recently, Celltrion has secured a prescription listing agreement with Express Scripts (ESI), one of the top three PBMs (Pharmacy Benefit Managers) in the U.S., achieving coverage of 75% of the total U.S.

 

insurance market.

 

After successfully entering the U.S.

 

market, the largest pharmaceutical market in the world, with its next-generation primary product 'Zymfentra (U.S.

 

product name of Remsima SC),' Celltrion forecasts sales expansion.

 

The company has begun receiving insurance reimbursement for Zymfentra since June, recording net sales of KRW 2.2 billion by the end of the current quarter.

 

Celltrion has signed contract with one the the top three PBMs in the U.S.

 

for Zymfentra…anticipating increased sales in the second half of the year.

Celltrion's U.S.

 

subsidiary plans to launch a media advertising campaign starting next month, leveraging the successfully secured insurance coverage.

 

The strategy is to emphasize that Zymfentra is the only subcutaneous formulation of infliximab, a key treatment for inflammatory bowel disease (IBD), and to accelerate revenue growth rapidly.

 

Additionally, with the completion of the amortization of the large-scale intangible asset rights affected by the merger in Q2, an increase in operating profit is anticipated.

 

Sales growth and the rapid depletion of existing inventory are expected to accelerate the improvement in the cost-of-sales ratio, thereby strengthening the company’s financial stability.