Celltrion third-quarter operating profit jumps 69 percent to 510 billion won

Celltrion said Monday its third-quarter operating profit rose 69.2 percent on-year to 510 billion won ($381 million), the first time a quarter has crossed the 500 billion won mark.

Revenue for the July-to-September period reached 1.5 trillion won ($1.12 billion), up 45.8 percent from 1.03 trillion won a year earlier, according to a regulatory filing. The operating margin rose 4.7 percentage points on-year to 34 percent.

The company attributed the result to a widening share of higher-margin follow-on products alongside production efficiency gains and an improved cost structure.

The company has now exceeded its quarterly operating profit targets for three straight quarters. In a business plan filed at the start of the year it set goals of at least 300 billion won for the first quarter, 400 billion won for the second and 500 billion won for the third.

"Quarterly operating profit surpassed 500 billion won for the first time, and we have exceeded the quarterly profit targets set at the start of the year for three consecutive quarters, demonstrating the execution of our growth strategy through results," a Celltrion official said. "We will continue raising the quality of profit growth by expanding the share of high-margin follow-on products and improving costs, while doing our utmost to meet our fourth-quarter and annual business plans on the strength of growth drivers such as the US launch of Omlyclo and expanded supply in Europe."

Looking ahead, Celltrion said Omlyclo, the first omalizumab biosimilar launched in the United States, was added to the preferred drug list of Optum, one of the three largest pharmacy benefit managers in the country, at the start of this month, with reimbursement taking effect in the fourth quarter. In Europe, bidding and supply schedules for major markets are concentrated in the second half.

"Omlyclo combines the advantage of being the first omalizumab biosimilar in the US with a product portfolio covering all indications, interchangeability and three dosage strengths," said Kim Bon-jung, chief executive of Celltrion's US unit. "With preferred drug status at a major PBM secured from the moment of launch, we have the foundation to expand early prescriptions."