Seoul: Celltrion Inc., a major South Korean biopharmaceutical company, announced on Wednesday that its net profit for the second quarter experienced a 19.3 percent decline compared to the previous year, attributed to provisions related to ongoing legal disputes. For the quarter ending June 30, the company's net profit dropped to 63.3 billion won (approximately US$45.6 million), down from 78.4 billion won in the same period last year, as stated in a regulatory filing.
According to Yonhap News Agency, Celltrion's decision to set aside provisions was made in anticipation of potential compensation linked to ongoing legal disputes, which in turn affected the company's quarterly financial results. A spokesperson from Celltrion confirmed the establishment of these provisions but did not provide further details.
Despite the decline in net profit, Celltrion's operating profit saw a significant increase, more than tripling to 242.5 billion won from 72.4 billion won. Additionally, sales rose by 9.9 percent, reaching 961.5 billion won compared to 874.7 billion won in the same quarter last year. The company attributed this growth to the increased global sales of its flagship biosimilars, including Remsima SC, Yuflyma, and Vegzelma, which accounted for 53 percent of total sales in the second quarter.
During the first half of the year, Celltrion's net income surged by 73 percent, reaching 171.6 billion won, up from 99.2 billion won a year earlier. The company remains optimistic about maintaining strong earnings in the second half, as it prepares to launch five new biosimilars-Omlyclo, Avtozma, Eydenzelt, Stoboclo, and Osenvelt-in global markets later this year.
Celltrion aims to achieve annual sales of 5 trillion won this year, marking a 40 percent increase from last year's record of 3.56 trillion won. The company has significantly expanded its global biosimilar portfolio, increasing the number of approved products from six to 11. By 2030, Celltrion plans to commercialize 22 biosimilar products, aligning with the projected growth of the global market to 261 trillion won from 138 trillion won this year.