Seoul: Celltrion Inc., a leading South Korean biopharmaceutical company, announced plans to repurchase 100 billion won (US$73 million) worth of its own shares as part of a corporate value-up program. The initiative is set to commence during trading hours on Friday.
According to Yonhap News Agency, this latest repurchase will bring the total value of shares bought back by Celltrion this year to 650 billion won. The company aims to enhance shareholder value and address its significantly undervalued corporate valuation amidst growing internal and external uncertainties.
In addition to the repurchase, Celltrion has already canceled 900 billion won worth of shares this year and plans to cancel more to support its stock price. The company's shares have fallen 14 percent this year through Wednesday, amid uncertainty over U.S. tariff policies and drug pricing reforms.
An executive order by U.S. President Donald Trump instructed pharmaceutical companies to lower drug prices in the United States to match those in other countries. Celltrion Chairman Seo Jung-jin stated that high U.S. drug prices result from issues in the middle distribution process, not pharmaceutical companies. He noted the executive order is unlikely to impact the company's business, as its biosimilars are sold at significantly lower prices in the U.S. compared to original drugs.
Furthermore, Celltrion's flagship biosimilars, including Remsima, Herzuma, and Truxima, are not subject to import tariffs as they are distributed through Pfizer in the U.S. market. As of 9:54 a.m., Celltrion was trading 0.06 percent lower at 160,400 won, outperforming the broader Korea Stock Price Index's (KOSPI) 0.71 percent loss.