KB Securities on the 5th said that for Celltrion, the cost ratio burden stemming from the merger with Celltrion Healthcare has eased and that sales are growing centered on new products. It raised its target price to 250,000 won from 235,000 won and maintained a buy rating.
Celltrion's third-quarter revenue was 1.029 trillion won and operating profit was 301.4 billion won. Those figures rose 16.7% and 45.1%, respectively, from a year earlier. They were 8.8% and 8.2% below KB Securities' estimates, respectively.
Still, sales of bio products and the growth in sales of high-margin new products are positive factors. It is also a remarkable achievement that, after the merger at the end of last year, the cost of goods sold ratio returned to the 30% range.
Kim Hye-min, an analyst at KB Securities, said, "Excluding the Remsima base effect, the existing product lineup maintained stable sales, and all high-margin new products are growing evenly and quickly," and noted, "In the fourth quarter, the launch effects of new products such as Eydenzelt and Aptozma are expected."
Going forward, the share price is expected to be driven more by expectations for research and development (R&D) results than by third-quarter results. Celltrion recently signed a joint research and development agreement with MustBio, an unlisted domestic company, for a triple-fusion protein drug candidate, and previously signed an exclusive license agreement with Kaigene in the United States for an autoimmune disease treatment candidate.
Kim said, "Because it is in the early stage, it may take time until research results emerge, but the active expansion into a high-profile field is encouraging," adding, "In a phase where improvement in results is being confirmed, it deserves more attention."