Celltrion, whose performance was sluggish this year… What are the future prospects?

Celltrion Headquarters in Songdo, Incheon [사진=셀트리온]

[헬스코리아뉴스 / 정우성·이지혜] Celltrion continues to perform poorly this year. However, it is raising expectations for the sales performance of Rekkorna, a treatment for COVID-19, and Remsima SC, a treatment for arthritis and Crohn’s disease, which will start exporting in earnest.

On the 16th, Celltrion closed at 229,000 won on the KOSPI, down 4,000 won (1.72%) from the previous day. The share price, which had surged the day before, is taking a break after the European market approval of Lekkona. Three securities firms released reports on the same day, and some analysts say that one of them set a target price of 200,000 won and poured cold water on investor sentiment.

Heungkuk Securities Researcher Na-kyung Lee presented a target price of 257,000 won in the first ‘buy’ report to Celltrion. Last month, Shinhan Investment Corp. lowered its target price by 19% from 320,000 won to 260,000 won, but a lower target price appeared.

“The number of pipelines currently open is 7, and we are planning to launch one or two new biosimilars every year from 2022, so we expect earnings to recover.” We are preparing to launch a biosimilar, so the competition will not be easy.”

However, he added, “It is expected that the COVID-19 recovery phase will enter next year, and the sales of Remsima SC are expected to normalize.” In the case of the COVID-19 diagnostic kit, the U.S. Department of Defense’s primary vendor has been awarded the contract and is in the process of supplying it. Considering that there was a supply contract worth 167.3 billion won on October 27, the demand for diagnosis for COVID-19 is expected to be maintained.

Celltrion share price [자료=네이버 증권]
Celltrion share price [자료=네이버 증권]

On the same day, Hanyang Securities maintained a target price of 360,000 won for Celltrion. This is the highest forecast in the past three months. “Remsima, Truxima, and Herzuma’s market share in Europe and the U.S. was solid in the third quarter,” said researcher Byeong-yong Oh. saw that

Researcher Oh said, “In the fourth quarter, we expect better results than in the third quarter due to the increase in sales plans for Remsima SC and U-Pyma.

On the same day, Hanwha Investment & Securities analyst Kim Hyung-soo maintained a target price of 300,000 won. Researcher Kim said, “European product approval for an antibody drug developed by ourselves has gained significance as a global new drug, but we are preparing for approval for an oral treatment,” said Kim.

Celltrion recorded 401 billion won in sales in the third quarter, down 26.9 percent from the third quarter of last year, and 164 billion won in operating profit, down 33.2 percent over the same period. The decline in sales growth rate of Truxima in the US, delays in sales of new products such as Rekkorna, an antibody treatment for COVID-19, and decrease in sales of Remsima SC are the reasons for the sluggishness.

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