April 26, 2024

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Celltrion was slow in the fourth quarter last year due to the suspension of its first factory, said NH Investment and Securities on Feb. 26 lowering the target price to 235,000 won (US$210.23) from 270,000 won.

Its revenue in the period fell 10.7 percent on-year to 211 billion won and operating profit plunged 74.1 percent to 39.6 billion won, below market consensus. Lowering the price of Herzuma and suspended operations of a factory were the main reasons for its continued downturn. Its operation ratio seems to have come out of the worst but earnings estimates have to be lowered, said analyst Koo Wan-seong.

From the second quarter, earnings will improve in tandem with operation ratio of the first factory. It will manufacture Truxima and Herzuma to be launched in the US in the second half. Remsima SC, expected to be approved for sales in Europe in the fourth quarter, will also be produced there, said the analyst maintaining a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)