[Company analysis] Celltrion Healthcare Co., Ltd. (셀트리온 헬스케어)

「Celltrion Healthcare Co., Ltd.(셀트리온 헬스케어)」owns exclusive marketing rights for biopharmaceuticals including biosimilars developed by「Celltrion(셀트리온)」as a co-developer and affiliated company. In particular, 「Celltrion Healthcare」is in charge of exporting Celltrion biosimilar products to the global market. However, since they do not have the equipment for processing finished pharmaceuticals, so they procure finished pharmaceuticals through a contract processing agreement with「Celltrion」and its overseas subcontractors. The number of consolidated employees is approximately 116.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is KRW 10 million, as of 2019

Company name	Celltrion Healthcare Co.,Ltd.
Company name (Korean)	셀트리온 헬스케어
Date of establishment	June 1, 2000
Headquarters location	인천광역시 연수구 아카데미로 51번길 19
Capital	14,392
Consolidated sales	110,087
Consolidated operating profit	82,793
Consolidated total assets	2,848,904
Consolidated capital	1,665,893
Capital adequacy ratio	58.5%
Consolidated number of employees	116

 

 

 

2. Summary and Features

 
When the company was initially established on June 1, 2000, the company name was 「Tech-In(테크인)」, and their major industrial domain was IT. Later, the founder of this company established「Celltrion(셀트리온)」and jumped into the biotechnology business. Then, this company name was changed to「Nexol(넥솔)」on June 10, 2000, and the current company name「Celltrion Healthcare (셀트리온 헬스케어)」on March 19, 2009. . At the same time, it became a sales company for biomedical products of「Celltrion」. In fact,「Celltrion」and「Celltrion Healthcare」had seperate corporate structures, so there was a suspicion of accounting fraud. In order to eliminate this concern, this company became listed on the “KOSDAQ” market in 2017.

Biosimilars account for only 1.9% of the global biopharmaceutical market in 2016. However, by 2026 this is expected to increase significantly to 14.2%. In particular, the average annual growth rate of the original biopharmaceutical market from 2016 to 2026 is expected to be 8.4%, while the annual average growth rate of the biosimilar market is estimated to be very high at 34.0%. As the patents of major original biopharmaceuticals continue to expire, it is expected that the growth of the biosimilar market with equivalent efficacy and low cost will be further expanded.

 

「Celltrion Healthcare」is basically in charge of exporting the biosimilar products of 「Celltrion」in the global market, and has concluded a sales contract with an overseas pharmaceutical company. They conduct oversea marketing by both direct sales by overseas affiliated company and indirect sales by contract with foreign company. But for most of their main biosimilar products, "Remsima", "Truxima", and "Herzuma", they take indirect sales except for some Asian countries.

Celltrion's first biosimilar product, "Remsima", has a 59% European market share of 3Q 2019, and has continued to increase its market share in the US since its launch in 2016. In the case of "Truxima," which entered the European market in the second quarter of 2017, it acheived a 39% share of the European market for the third quarter of 2019, which is close to the share of original drugs(40%). In the case of "Herzuma", it has 18% of European market share based on the third quarter of 2019, and it is almost double compared with the market share of competitors' biosimilar products. Since March 2020, "Herzuma" was released in US market, too.

 

 

 

3. Major Business

 

■ Exclusive sales of Celltrion's biosimilars and biopharmaceuticals

 

 

 

4. Financial information

 

※Unit is KRW 10 million

		2017	2018	2019
Consolidated sales		92,092	71,348	110,087
Consolidated operating profits		15,365	-2,519	82,793
Consolidated total assets		287,494	294,856	2,848,904
Consolidated net assets		170,747	163,547	1,665,893
Breakdown of sales	Product - "Remsima"	50,686	41,040	52,345
	Product - "Truxima"	30,697	13,967	44,342
	Product - "Herzuma"	1,773	148,13	12,548
	Goods -"Remsima"			19
	Goods - "Truxima"	7,623	-3,390
	Goods - "Herzuma"		2,118
	Goods - Others		3	37
	Service - "Remsima"	9	15	5
	Service - "Truxima"		280	1
	Service - "Herzuma"			48
	License profits・Others	1,301	2,499	7,41