Celltrion is poised to achieve record-breaking performance last year, driven by the successful U.S. market entry of its flagship product, Zymfentra, and the impressive growth of its new biosimilar portfolio. The company aims to evolve from a biosimilar research and development (R&D) and manufacturing firm into a comprehensive healthcare enterprise through proprietary drug development and a direct sales network. Following its merger with Celltrion Healthcare, the company’s cost ratio has begun to stabilize after a temporary increase, signaling a potential quantum leap in both revenue growth and profitability.
Celltrion is expected to usher in an era of 4 trillion KRW (about 2.8 billion USD) in sales and 1 trillion KRW (about 696 million USD) in operating profit. Financial data provider FnGuide projects Celltrion’s annual revenue for last year at 4.1021 trillion KRW (about 2.9 billion USD), with an operating profit of 1.1254 trillion KRW (about 783 million USD). This represents year-over-year growth of 15.3% and 128.7%, respectively. If these projections hold, Celltrion will join the elite 4 trillion KRW revenue and 1 trillion KRW operating profit club.
A key factor driving this rapid growth is the recovery in profitability. Following the merger with Celltrion Healthcare in late 2023, operating margins temporarily dipped due to inventory assets from the merged entity. However, reports indicate that most high-cost inventory has been cleared since last year. The sale of products with low cost ratios of 20-30%, reflecting improved production efficiencies, has restored the company’s historically high operating margins. This has triggered an operating leverage effect, where profits grow in tandem with revenue increases.
The projected 4 trillion KRW (about 2.8 billion USD) sales milestone is largely attributed to the impact of Zymfentra, a subcutaneous infliximab treatment that received the Food and Drug Administration (FDA) approval and launched in the U.S. market. Now in its second year, Zymfentra has seen a steep rise in prescriptions, emerging as a significant revenue generator.
Celltrion has secured formulary listings covering over 80% of the U.S. insurance market, including the three largest pharmacy benefit managers (PBMs). These listings are crucial for patient access in the predominantly private insurance-based U.S. healthcare system. The financial impact of these listings is expected to materialize from the second half of 2025.
Unlike existing biosimilars, Zymfentra received FDA approval as a novel drug, allowing it to command a premium price. While competing biosimilars engage in price wars, Zymfentra leverages its convenience to maintain a high-price strategy, driving improvements in profit margins.
Industry analysts suggest that aggressive marketing to healthcare providers, combined with direct-to-consumer advertising, is reshaping the inflammatory bowel disease (IBD) market landscape.
New Products Like Steqeyma and Omlyclo Join the Lineup… Expanding the Portfolio
Established products like Remsima (IV formulation), Truxima, and Herzuma continue to maintain strong global market shares. The sequential launch of next-generation biosimilars starting in the latter half of 2024 is expected to further boost performance.
Steqeyma, a biosimilar for the autoimmune disease treatment Stelara, along with Omlyclo, a biosimilar for the allergy medication Xolair, and Eydenzelt, a biosimilar for the eye disease treatment Eylea, have all received regulatory approvals and commenced sales in key markets including Europe and the U.S.
These new products significantly diversify Celltrion’s portfolio, which previously focused on autoimmune and oncology treatments, now expanding into ophthalmology and allergy therapies.
Leveraging Celltrion’s global direct sales network, Steqeyma and Omlyclo have quickly captured significant market share since their launch. The shift from reliance on distribution partners to direct sales has reduced costs and enabled rapid market responsiveness, facilitating the swift establishment of these new products.
Celltrion is intensifying efforts to secure future growth drivers through new drug development and entry into the contract development and manufacturing organization (CDMO) business.
The company is forging collaborations with promising biotech firms to develop antibody-drug conjugates (ADCs) and multi-specific antibody therapies. Simultaneously, it’s accelerating the development of its proprietary drug pipeline.
Celltrion aims to advance select promising candidates from its new drug pipeline into Phase 1 clinical trials by year-end. This strategy seeks to replicate Zymfentra’s success formula with subsequent novel drug developments, transcending the company’s identity as solely a biosimilar manufacturer.
Furthermore, Celltrion plans to establish a wholly-owned CDMO subsidiary and initiate specific facility expansions within the year. This move leverages the company’s expertise in antibody drug production to secure additional stable revenue streams.
The ongoing global supply chain restructuring, which is reducing reliance on Chinese CDMO firms due to U.S. biosecurity legislation, is expected to create favorable conditions for Celltrion’s CDMO business entry.
An industry insider noted that Celltrion has overcome temporary financial uncertainties post-merger and is now entering a phase of significant performance turnaround. The synergy between expanding U.S. sales of Zymfentra and improving cost ratios has enabled structural growth.
The insider added that with new growth engines in drug development and CDMO operations, Celltrion is poised for a reevaluation as a global, integrated healthcare enterprise.
