Korea Investment & Securities noted on the 14th that Celltrion is expected to improve its gross profit margin (GPM) as the existing product market share in Europe increases due to the merger effects since last year, along with new products and sales of Jimpenetra. Accordingly, the investment opinion is 'buy,' and the target price remains at 220,000 won. The previous day's closing price for Celltrion was 184,600 won.
According to Korea Investment & Securities, Celltrion's sales and operating profit for this year are projected to be 4.2081 trillion won and 1.2429 trillion won, respectively. This represents the largest growth among stocks in the pharmaceutical and biotechnology sector. The Research Institute at Korea Investment & Securities explained, “We will launch five new biosimilar products this year,” noting that “the new products have a high price, which is a factor in improving GPM, and launches are expected to begin in the second half of the year, with GPM projected to improve quarter by quarter.”
The Research Institute emphasized that Celltrion has completed preliminary measures against uncertain U.S. tariff policies. He analyzed, “By completing shipments of nine months' worth of inventory as of the end of January, the impact on sales in the U.S. this year has been minimized,” adding, “Furthermore, as the production of finished pharmaceuticals has been through local CMO since the past, it is not a matter of concern.”
He continued, “Celltrion is also expected to finalize investment decisions regarding securing facilities for the production of active pharmaceutical ingredients in the U.S., which have been under review since last year, in the first half of this year, thus preparing sustainable risk measures.” He noted, “Short-term investor sentiment for corporations selling pharmaceuticals in the U.S. has deteriorated due to uncertainty in U.S. policies, but in the medium to long term, the U.S. government, which aims to reduce medical expenditure, will have no choice but to continue the expansion of biosimilar prescriptions.”