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Photo = Celtrion |
[Alpha Biz= Paul Lee] Korea Investment & Securities maintained its "Buy" rating on Celltrion, keeping the target price at KRW 220,000, citing the expected impact of its merger this year. The stock closed at KRW 184,600 on the previous trading day.
The firm stated, "The merger synergies are already boosting market share for existing products in Europe, and with the addition of new products and Zymfentra sales, revenue growth is expected." It further noted that the gross profit margin (GPM) would improve depending on the revenue share of new products and Zymfentra.
Korea Investment & Securities highlighted that Celltrion will launch biosimilars for Stelara (Stekyma), Actemra, Xolair, Prolia, and Eylea in Europe and North America this year. "New products have higher pricing, which is a key factor for GPM improvement. As launches will begin in the second half of the year, GPM is expected to improve progressively each quarter."
For 2024, the firm projected Celltrion’s revenue to grow by 18% year-on-year to KRW 4.2081 trillion, with operating profit surging by 153% to KRW 1.2429 trillion, making it the fastest-growing company in the pharmaceutical and biotech sector.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
