Celltrion Inc., a South Korean biopharmaceutical firm, said Monday that its net profits shrank 34.3 percent in 2018, despite record-high sales, mainly due to increased costs.
Net profits came to 253.6 billion won ($226.2 million) last year on a consolidated basis, compared with 403 billion won a year ago, the company said in a regulatory filing.
(Celltrion)
Celltrion said its operating profits plunged 34.3 percent on-year to 338.7 billion won in 2018.
The company said its sales, meanwhile, reached a record-high of 982.1 billion won mainly due to increased revenues from its biosmilars -- Truxima and Herzuma -- in the European market.
In regard to drop in profits, the company said costs rose temporarily due to ongoing expansion of its No. 1 plant in Incheon, west of Seoul, coupled with increased personnel expenditures.
Looking ahead, Celltrion expects its earnings to improve over the long term as output is likely to increase when the ongoing construction is completed this year.
Celltrion specializes in biosimilars — cheaper generic versions of the pricey "biologic" drugs that are among Big Pharma's best-sellers. It operates two plants in Incheon. (Yonhap)
