South Korean pharmaceutical company Celltrion said it aims to log 3.5 trillion won ($2.6 billion) in revenue 2024 once its merger with two affiliates is completed, an increase of over 50 percent from the revenue estimated for this year.
During an online meeting with investors on Thursday, Celltrion Founder and Chairman Seo Jung-jin said the company will consider an initial public offering of Celltrion Holdings, the holding firm of Celltrion Group, if necessary after the merger.
When the merger of Celltrion with its overseas sales affiliate Celltrion Healthcare and biosimilar drugs sales affiliate Celltrion Pharm next year, their consolidated sales is expected to reach 3.5 trillion won in 2024, up 52 percent from 2.3 billion won estimated for 2023.
Seo expected that growth in overseas sales of its biosimilar products will drive sharp growth in next year's earnings.
Celltrion said it expects the company's infliximab biosimilar Remsima SC's sales to log 230 billion won in sales in Europe and 600 billion won in sales in the United States.
Celltrion said Yuflyma, a Humira biosimilar and injectable treatment for rheumatoid arthritis, is further expected to glean annual sales of 280 billion won in sales in Europe and 230 billion won in sales in North America. Begzelma, an anticancer biosimilar, is also expected to raise more than 300 billion won in annual sales in US and Europe.
"With Yuflyma and Begzelma's listing on US insurance companies' prescriptions and pharmacy benefit managers expanded, we expect our estimations to become a reality soon," said an official from Celltrion.
Its annual sales for next year are to be further positively affected by the upcoming merger, Celltrion said.
On Aug. 17, Celltrion announced its plans to merge Celltrion with Celltrion Healthcare by Dec. 28. After the two companies are merged, Celltrion said within six months of its first merger, it will additionally have Celltrion Pharm be absorbed by the newly integrated corporation.
The company said the mergers are expected to significantly improve cost competitiveness of its products through the unification of its development and sales units. It added that by merging the affiliates, it will aim to secure large-scale investments for the development of new drugs and new modalities.
"The planned mergers will streamline the operations of each company, improving both efficiency and profitability,” Seo said, during an online briefing held on Aug. 17.
Seo added that the possibility of having Celltrion Holdings go public will be reviewed, if necessary.
"After the merger of the three companies, (we) will consider listing Celltrion Holdings, if necessary." said Chairman Seo.
"If (Celltrion Holdings) gains additional funds (due to the listing), (Celltrion Holdings) plans on further increasing its stake in the merged corporation of the three companies," he said.
Amid investor concerns that Celltrion Holdings' initial price offering could lead to Chairman Seo's liquidation of his stakes in the company, Seo said there is currently no plan for him to reduce his stake in Celltrion Holdings.
Currently, Chairman Seo holds a 98 percent stake in Celltrion Holdings.
The holding company maintains oversight of its affiliates Celltrion and Celltrion Healthcare with 20.1 percent and 24.3 percent stakes, respectively. Celltrion holds a 54.8 percent stake in Celltrion Pharm.
