[THE INVESTOR] Celltrion Healthcare will regain momentum next year, said Eugene Investment and Securities on Dec. 28 lowering the target price to 130,000 won (US$116.23) from 150,000 won while maintaining a “buy” recommendation.
Sales of Truxima and Herzuma in the US will be in full swing from the second half of 2019, while the following year, Remsima Sc will propel its growth. Operating profit will return to an upcycle, with 67 percent growth rate in 2019 and 54 percent the next year. The subcutaneous version of Remsima is likely to gain approval in Europe in late 2020. Sales will hit 1 trillion won by 2022. When the biosimilar is launched in 2021 in the US, it will signify entering the tumor necrosis factor alpha inhibitor market there over two years early, said analyst Han Byeong-hwa.
Operating profit for this year, however, will drop 33 percent from last year. It has aggressively lowered price of its major drugs to secure market share and thwart rivals in Europe, but operating margin in the short term has declined and brought down the stock price, noted the analyst.
By Hwang You-mee (firstname.lastname@example.org)