Celltrion is stepping up its push into Europe through the acquisition of a French distribution company and tailored sales strategies for individual countries. The company plans to expand its distribution network into pharmacies and increase prescriptions of higher-margin follow-on products to maintain growth in the fourth quarter after posting its highest-ever quarterly results in the third quarter.
According to Celltrion on the 21st, the company is expanding its European distribution network and product portfolio through the acquisitions of French healthcare company Gifrer and Swiss pharmaceutical distributor iQone.
In particular, Celltrion plans to leverage Gifrer’s distribution network, which covers more than 9,000 pharmacies and supplies over 800 hospitals across France, to broaden sales channels for its biosimilars. The company will begin expanding its pharmacy-focused sales efforts with Stoboclo and Osenvelt, treatments for bone diseases containing denosumab. It also plans to use the more than 140 over-the-counter (OTC) medicines, pharmacy products and dietary supplements secured through the acquisition as new sources of revenue.
The strategy is designed to diversify the earnings base of Celltrion’s European business by adding pharmacy distribution and sales of new products to its existing hospital- and tender-focused biopharmaceutical sales model.
Country-Specific Sales Strategies Drive Follow-On Product Growth
Country-specific sales strategies leveraging Celltrion’s direct sales network in Europe are also supporting the expansion of its follow-on products.
Omlyclo, an omalizumab treatment for chronic spontaneous urticaria and allergic asthma, recorded a market share of approximately 90% in Spain as of July this year. It also exceeded initial sales targets in Italy. In Germany, Celltrion is pursuing broader prescriptions by quickly launching the 300-mg formulation to meet local demand.
Aptozma, a tocilizumab treatment for autoimmune diseases, won tenders from major pharmaceutical purchasing groups in the Netherlands. Celltrion secured supply volumes through large purchasing group IZAAZ and southeastern regional purchasing group ICZON, among others, representing approximately 58% of the local tocilizumab market.
Celltrion plans to strengthen sales and marketing activities through its local subsidiaries to convert these tender wins into actual prescriptions and revenue.
Existing Products, Including Remsima SC and Vegzelma, Also Grow
Expanding market shares for existing products is also supporting improved performance in Europe.
Remsima SC, an infliximab treatment for autoimmune diseases, recorded a market share of approximately 32% across Europe’s five major markets (EU5) in the first quarter of this year. Vegzelma, a bevacizumab treatment for metastatic colorectal and breast cancer, has maintained its position as the market leader in Europe for 21 consecutive months, with a market share of approximately 28%. Yuflyma, an adalimumab treatment for autoimmune diseases, has also secured a market share of approximately 22%.
Celltrion expects growth in its European business to continue as its expanded distribution network coincides with increasing sales of follow-on products.
Earlier, Celltrion reported preliminary consolidated revenue of 1.5 trillion won (approximately $1 billion) and operating profit of 510 billion won (approximately $340 million) for the third quarter, setting a new quarterly record. The company plans to sustain revenue growth and improve profitability in the fourth quarter by expanding its European sales base and increasing prescriptions of higher-margin products.
“We are strengthening our competitiveness in existing biopharmaceutical sales in Europe while expanding our distribution channels and product portfolio,” a Celltrion official said. “By tailoring our sales strategies to the characteristics of each national market and expanding sales of higher-margin follow-on products, we aim to continue growing revenue and improving profitability in the fourth quarter.”
Meanwhile, Celltrion disclosed preliminary consolidated third-quarter results of 1.5 trillion won (approximately $1 billion) in revenue and 510 billion won (approximately $340 million) in operating profit. Revenue increased 45.8% year over year, while operating profit rose 69.2%. The operating margin reached 34%, up 4.7 percentage points from the same period last year.
At the beginning of the year, Celltrion set operating profit targets of more than 300 billion won (approximately $200 million) in the first quarter, 400 billion won (approximately $267 million) in the second quarter and 500 billion won (approximately $333 million) in the third quarter. With its latest results, the company has exceeded its targets for three consecutive quarters.