Celltrion is making bold promises to investors, targeting a 30 percent annual compound annaul growth rate (CAGR) by 2027, 5 trillion won in revenue in 2025, and 7 percent return on equity.
The Korean biopharma laid out its “Value-Up Program” on Tuesday, pledging to ramp up direct sales, cut costs, and return 40 percent of net income to shareholders over the next three years.
Celltrion targets 5 trillion won in revenue by 2025, driven by biosimilars, direct sales, and a major push for shareholder returns.
Celltrion targets 5 trillion won in revenue by 2025, driven by biosimilars, direct sales, and a major push for shareholder returns.
The announcement comes after a record-breaking 2024, with consolidated revenue hitting 3.56 trillion won ($2.48 billion), a 63.5 percent increase from the previous year. However, operating profit dropped 24.48 percent year-over-year to 492 billion won.
The company now has 11 approved products, up from six last year, and plans to reach 22 by 2030. If that expansion materializes, Celltrion estimates its total addressable market could double from 138 trillion won to 261 trillion won by the end of the decade.
Celltrion is also shifting to a direct distribution model, aiming for greater control over pricing and faster market penetration. The company plans to cut its cost of goods sold from 45 percent to 30 percent by 2027 through higher manufacturing yields and expanded Plant 3 capacity.
To further support growth and shareholder returns, Celltrion is repurchasing stock, with 7 trillion won in buybacks last year and another 2 trillion won this month. It is also raising dividends by 1.5 times this year, planning to distribute 750 won per share in cash and 0.05 new shares per existing stock.
Additionally, Celltrion has proposed a reduction of capital reserves and allocation to retained earnings at its upcoming annual meeting, which will secure tax-free dividend funding of 620 billion won.
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Kim Ji-hye jkim404@docdocdoc.co.kr
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