Celltrion is showing strong performance in early trading, buoyed by a series of upgraded price targets from securities firms. The optimism surrounding the expansion of its North American biosimilar business and improved profitability is believed to have enhanced investor sentiment.
According to the Korea Exchange, as of 10:07 a.m., Celltrion's shares were trading at 182,100 won, up 3,400 won (1.90%) from the previous trading day. The stock opened at 178,000 won and briefly rose to 186,400 won during the session. Although it later gave back some gains, it continues to show strength.
The rise in stock price is attributed to the recent upward adjustments in price targets by analysts. They have raised their targets in light of Celltrion's potential for expanding its North American biosimilar business and improving profitability.
Shinhan Investment Corp. raised its target price for Celltrion to 290,000 won, citing the company's entry into a profitability phase driven by high-margin new product sales in North America.
Lee Ho-cheol, an analyst at Shinhan Investment Corp., stated in a report, "The U.S. launch of Omiclon in the second half of the year, the growth of U.S. sales based on the wholesale acquisition cost (WAC) of Uplima, and the expansion of intravenous (IV) to subcutaneous (SC) prescriptions through collaboration with Pfizer for Jimpenetra will all gain momentum."
He added, "With rapid market penetration of new products, we expect to exceed annual guidance. By 2030, we anticipate sustained profit growth with a portfolio of 18 biosimilars, and there are plans to disclose top-line results for two antibody-drug conjugates (ADCs) in global Phase 1 trials early next year." He concluded that the profitability from biosimilars will support the development of new drugs, initiating a virtuous cycle.
Meritz Securities also reassessed Celltrion's corporate value, raising its target price to 290,000 won. Kim Jun-young, an analyst at Meritz Securities, noted, "Unlike in the past when merger-related costs were burdensome, the current increase in the proportion of high-margin new products, the establishment of a direct sales system, and improvements in operating profit margins (OPM) are enhancing visibility for profit growth." He emphasized the importance of new product growth, including Omiclon, and the normalization of Jimpenetra's sales.
* This article has been translated by AI.
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