Analysts grow more bullish on Celltrion as margin expansion gains traction

Analysts have become increasingly bullish on Celltrion as its earnings momentum is expected to strengthen further this year after the company beat market expectations in the first quarter, citing faster growth of high-margin biosimilars, improving operating leverage and a reduced burden from one-off costs.

Celltrion headquarters in Songdo, Incheon. (Credit: Celltrion)

Celltrion reported record first-quarter results, but analysts focused less on the top-line surprise itself and more on signs that the company’s profit expansion is entering a more visible phase. The company’s first-quarter revenue rose 36 percent from a year earlier to 1.14 trillion won ($820 million), while operating profit more than doubled to 321.9 billion won, lifting its operating margin to 28.1 percent.

The company said its effective margin would have reached the 30 percent range excluding a temporary impact from scheduled maintenance at its U.S. production facility.

Now, analysts expect the company’s newer biosimilars, expanding U.S. prescriptions for Zymfentra and its direct sales structure to support further margin improvement in the second half.

Hyundai Motor Securities analyst Kim Heun-seok attributed the first-quarter sales growth to the rapid expansion of newer products and said Celltrion’s growth momentum is likely to become stronger in the second half of the year.

He also pointed to further room for margin improvement, noting that one-off costs related to scheduled maintenance at Celltrion’s Branchburg plant in the U.S. are unlikely to recur after the first quarter.

At NH Investment & Securities, analyst Han Seung-yeon described 2026 as the year when the earnings impact of Celltrion’s five high-margin biosimilars would be fully reflected.

IBK Securities analyst Jeong Yi-soo took a similar view, citing continued sales growth and operating leverage from Celltrion’s direct sales system as factors that could support profitability. Jeong forecast Celltrion’s operating margin at 34.1 percent this year.

SK Securities analyst Lee Sun-kyung said the company is likely to achieve its 5.3 trillion won annual revenue target, supported by strong growth of the five products launched last year and stable sales growth of Zymfentra.

Samsung Securities analyst Seo Keun-hee said Celltrion’s contract manufacturing deal for Eli Lilly and additional CMO contracts with global pharmaceutical companies are expected to be recognized as revenue from the second half of the year, adding another growth driver outside its biosimilar business.

Those assessments were backed by early signs that Celltrion’s newer products are already gaining commercial traction in key markets.

Sales of five biosimilars launched since last year increased 67 percent year-on-year in the first quarter, with their combined revenue share exceeding 60 percent of total sales for the first time.

The company said the products are quickly becoming core growth drivers as Celltrion wins major tenders in Europe and secures broader reimbursement coverage in the U.S.

Zymfentra, the U.S. brand name of Celltrion’s infliximab subcutaneous formulation Remsima SC, recorded its highest-ever quarterly prescription volume in the first quarter, up 185 percent from a year earlier. Celltrion said the growth reflected its customized U.S. sales strategy, including more than 90 percent reimbursement coverage, rising awareness among physicians and patients, and steady quarterly prescription growth since launch.

The company also pointed to continued progress in Europe. Omlyclo, Celltrion’s omalizumab biosimilar launched as a first mover in Europe, won tenders in major markets including Italy, the U.K. and the Netherlands. In Germany, the product recorded a double-digit market share within one month of launch.

Avtozma, a biosimilar for autoimmune diseases and one of Celltrion’s most recently launched products, also gained early traction, securing 80 percent of the private hospital market in France and being selected for supply through Spain’s public procurement agency INGESA.

Celltrion plans to continue investing in future growth through follow-on biosimilars and new drug development. The company spent 482.4 billion won on research and development last year, up about 15 percent from the previous year, and reflected about 100 billion won in recurring R&D expenses in the first quarter of 2026.

Through these investments, Celltrion aims to expand its biosimilar portfolio from 11 products currently on the market to 18 by 2030 and 41 by 2038.

In new drug development, the company is advancing three antibody-drug conjugate (ADC) candidates and one multi-antibody anticancer drug that have already entered clinical stages. It also plans to expand its pipeline to about 20 programs by next year, including candidates in obesity treatment and gastrointestinal diseases.

The company has also continued shareholder return measures. In April, Celltrion completed the cancellation of 9.11 million treasury shares worth about 1.8 trillion won, the largest share cancellation in its history. It also decided to immediately cancel all recently repurchased treasury shares worth about 100 billion won.

Industry watchers expect the share cancellations to reduce the number of outstanding shares and increase per-share value, seeing the move as part of Celltrion’s effort to pursue earnings growth and shareholder returns at the same time.

“Celltrion is working to strengthen its fundamentals by expanding its global biosimilar market share and advancing its new drug pipeline,” a company official said. “The record first-quarter sales and improved profitability demonstrate this direction.”

The company will continue to pursue earnings-driven growth and actively consider various measures to enhance shareholder value, strengthening the foundation for growth together with shareholders, he added.