Celltrion is expanding its foothold in the U.S. market by securing exclusive supply agreements for its allergy treatment Omlyclo and autoimmune disease therapy Avtozma.
The company announced on Monday that its U.S. subsidiary had inked exclusive supply deals with a major local healthcare firm earlier this month. The agreements cover Omlyclo’s pre-filled syringe (PFS) formulation and all formulations of Avtozma (intravenous and subcutaneous). Both products have been selected as exclusive offerings, surpassing their original counterparts, with supply and insurance coverage commencing this month.
The partnering healthcare company oversees a network of large hospitals, insurance providers, and pharmacy benefit managers (PBMs). Under these agreements, both Omlyclo and Avtozma will be listed as preferred medications in the insurer’s formulary and supplied to affiliated healthcare facilities. This move allows Celltrion to establish a distribution network that seamlessly integrates insurance coverage with healthcare facility supply chains.
Celltrion leveraged its existing local partnerships, built through previous product distributions. The company had already established strong ties by supplying bone disease treatments like Stoboclo and Osentvelt (denosumab) to major hospitals under the healthcare company’s umbrella.
In a separate deal, Omlyclo secured a supply agreement with a major U.S. retail chain. The product is now available in the company’s in-store pharmacies and has entered the prescription market through the health insurance plan covering approximately 350,000 employees. Omlyclo has been designated as the sole preferred medication, except in cases requiring vial formulations.
The product has also been added to a drug discount program serving about 74 million members. This inclusion allows uninsured individuals and their dependents to purchase Omlyclo at discounted rates from the company’s pharmacies and affiliated drugstores. This strategic move positions Celltrion to target both insured and uninsured markets simultaneously.
Celltrion is currently in talks with several large PBMs for additional formulary listings. The company expects these negotiations to conclude soon, with contracts likely to be signed in the fourth quarter. Successful additional agreements would further expand Celltrion’s insurance coverage and prescription base in the U.S.
The company is leveraging its established U.S. direct sales network and connections with insurers, healthcare providers, and distributors to promote its newer products. Celltrion aims to boost the sales proportion of these new offerings while driving both growth and profitability in its U.S. operations.
Kim Bon-jung, Chief Executive Officer (CEO) of Celltrion’s U.S. subsidiary, stated that Omlyclo and Avtozma are rapidly penetrating the supply channels of major healthcare and distribution companies from the outset of their U.S. launch. It’s focused on translating these supply agreements into tangible prescriptions and sales growth. It’s also working to finalize PBM listings, which will further solidify the new products’ growth potential in the U.S. market.
In related news, Celltrion disclosed its preliminary Q3 financial results. The company reported consolidated revenues of 1.5 trillion KRW (approximately 1.13 billion USD) and an operating profit of 510 billion KRW (about 384 million USD). These figures represent year-over-year increases of 45.8% in revenue and 69.2% in operating profit. The operating profit margin climbed to 34%, up 4.7 percentage points from the same period last year.
Earlier this year, Celltrion set quarterly operating profit targets of 300 billion KRW (about 226 million USD), 400 billion KRW (about 301 million USD), and over 500 billion KRW (about 377 million USD) for Q1, Q2, and Q3, respectively. With these latest results, the company has surpassed its targets for three consecutive quarters.
