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Photo= Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] On November 11, Korea Investment & Securities downgraded its target price for Celltrion (068270) from 250,000 won to 220,000 won, a 12% reduction, citing the underperformance of its newly launched drug ZYMFENTRA (U.S. product name: Remsima SC) in the U.S. market. The firm maintained its 'Buy' rating on the stock.
Korea Investment & Securities noted that while ZYMFENTRA has seen rapid increases in prescriptions and shipments since being listed by U.S. prescription benefit management (PBM) companies in August, its sales have not met market expectations. The firm indicated that achieving the guidance for this year seems unlikely, with a more realistic target being the next year.
Celltrion reported third-quarter revenue of 881.9 billion won, a 31.2% year-on-year increase, but operating profit fell by 22.4% to 207.7 billion won. Both revenue and operating profit were 5% below consensus estimates.
In particular, ZYMFENTRA sales amounted to 6.4 billion won, falling short of market expectations. However, growth was still supported by an increase in biosimilar sales, such as Remsima SC.
Korea Investment & Securities expressed that, based on the success of Remsima SC in Europe, they remain optimistic about ZYMFENTRA's eventual success in the U.S. market. However, they noted that as a new player entering the largest and most complex pharmaceutical market, Celltrion will need time to build its marketing capabilities.
The firm concluded that following the disappointing earnings announcement, the market will likely focus on the pace of ZYMFENTRA prescriptions and emphasized the need for a data-driven marketing strategy to accelerate long-term revenue growth.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
