On Dec. 28, the integrated company Celltrion will be officially launched. Celltrion is taking steps to leap into a global big pharmaceutical firm by merging with Celltrion Healthcare, which is responsible for global distribution.
Celltrion and Celltrion Healthcare announced on Dec. 27 that they are in full swing with organizational restructuring and other preparations for the official launch of integrated Celltrion ahead of the merger. The merger date for Celltrion and Celltrion Healthcare is set for Dec. 28, and the scheduled listing date for the merged new shares is Jan. 12.
The strategy for integrated Celltrion is to centralize pharmaceutical development and global distribution, aiming to enhance cost competitiveness and strengthen market dominance. Furthermore, with the merger of the two corporations, there are plans to actively embark on large-scale investments to secure new growth engines, considering the increase in cash reserves. The exercise of stock purchase demands by shareholders opposing the merger amounted to 7.9 billion won (US$6.09 million), which represents 0.19% of the total shares indicating opposition to the merger. This leaves ample room for investment. The elimination of intra-group transactions is expected to resolve controversies that have hindered Celltrion for an extended period, such as the practice of concentrating business deals within the group.
Celltrion aims to evolve into a comprehensive healthcare company, covering biosimilars, which are replicated biopharmaceuticals, and new drugs through the merger with Celltrion Healthcare. Its goal is to achieve a revenue of 12 trillion won by 2030, with an emphasis on developing 22 biosimilars. In the upcoming year, considered as the inaugural year for integrated Celltrion, it is anticipated that the company will focus on expanding the global market share of Remsima SC and Yuflyma, an adalimumab biosimilar of Humira. The emphasis will also be on obtaining product approvals for up to five new pipeline items.
The key focus for the next year is on expanding the global market share of high-value biosimilars and achieving success in obtaining approvals for new biosimilar products. Celltrion Chairman Seo Jung-jin has forecast a revenue of 3.5 trillion won and earnings before interest, taxes, depreciation, and amortization (EBITDA) of 1.6 trillion won for integrated Celltrion next year. To achieve this goal, it is essential to increase the market share in advanced markets such as the United States and Europe for the newly approved drug Remsima SC, known as Zymfentra in the U.S., and for Yuflyma, a biosimilar of Humira, which boasts a global market size of 27 trillion won.
Moreover, there are expectations that five new pipeline products, which have completed global phase 3 clinical trials, will gradually obtain approvals starting next year, solidifying their position as growth drivers. Currently, Celltrion is progressing or preparing the approval procedures for five biosimilars, namely CT-P39 for Xolair, CT-P42 for Ilia, CT-P43 for Stelara, CT-P41 for Prolia, and CT-P47 for Actemra. With the addition of these five to the six biosimilars already launched in the global market by Celltrion, the company is anticipated to have a total of 11 products by 2025 at the latest.
Additionally, attention is drawn to the achievements in new drug development and mergers and acquisitions (M&A). Celltrion plans to expand its business scope not only in the biosimilar sector but also in the field of new drug development. Particularly, there is active collaboration with domestic and international companies to research antibody-drug conjugate (ADC) technology, which has garnered significant attention in the global pharmaceutical and biotech markets. There are also ongoing efforts to consistently evaluate the acquisition of overseas companies in order to enhance competitiveness in the core business.