[NA Eun-kyung, Edaily Reporter] Celltrion Co.(KQ:068270) reported record-breaking earnings for the second quarter of 2025, continuing its robust growth trajectory following its highest-ever Q1 results. Fueled by the synergies of a recent merger, improved cost efficiency, and an expanding portfolio of high-margin products, the company is gaining traction in its quest to become a global pharmaceutical leader.

Celltrion R&D scientist (Source: Celltrion)

Strong Margins Drive All-Time-High Q2 Earnings

According to preliminary figures disclosed by the company, Celltrion logged consolidated revenue of 961.5 billion won ($741 million) and operating profit of 242.5 billion won ($187 million) for the second quarter. Both figures represent record Q2 performance, with revenue up 9.9% and operating profit soaring 234.5% year-over-year. Operating margin improved to the 25% range.

The company attributed its performance to strong overseas sales of existing biologics and rapid growth in newly launched, high-profit products including Remsima SC (Zymfentra in the U.S.), Yuflyma, Vegzelma, and Steqima. High-margin product sales accounted for 53% of total sales in Q2, up sharply from 30% a year earlier.

In addition, sustained efforts to improve manufacturing efficiency contributed to the margin gains. These included the clearance of high-cost inventory carried prior to the merger, increased yields through Titer Improvement(TI), higher utilization at Plant 3, reduced reliance on CDMOs for drug substance production, and the amortization of R&D expenses for legacy products. As a result, the cost of goods sold ratio fell to approximately 43% in Q2 from 58% a year earlier, with a 4 percentage point improvement from Q1 alone.

Four New Products Slated for H2 Launch

Building on its H1 momentum, Celltrion aims to ramp up growth in the second half with multiple new product launches. The company plans to roll out four new biosimilars Omliclo, Aptozma, Idenzelt, and Stoboclo-Ocenbelt in major global markets by year-end.

Having already achieved its initial goal of building an 11-product portfolio by 2025, Celltrion now targets a total of 22 biosimilars by 2030. Its next-generation pipeline includes biosimilar versions of Ocrevus, Cosentyx, Keytruda, and Darzalex all currently in development.

In parallel, Celltrion is expanding its innovative drug portfolio, focusing on next-generation modalities such as antibody-drug conjugates (ADCs) and multispecific antibodies. Four novel drug candidates are set to enter Phase 1 trials this year. The company plans to file INDs for 13 assets including nine ADCs and four multispecifics by 2028.

Analyst Confidence Grows on Earnings Visibility

Analysts expressed confidence in Celltrion’s long-term trajectory. “The sharp increase in high-margin product sales and internalization of drug substance production helped enhance profitability,” said Seo Geun-hee, team leader at Samsung Securities. “With four new launches scheduled for H2, we expect the growth momentum to continue.”

Kwon Hae-soon of Eugene Investment & Securities noted the company’s unusual timing in announcing its Q2 results earlier than expected. “This suggests confidence in its earnings performance and a proactive effort to reduce market uncertainty,” she said.

Han Seung-yeon of NH Investment & Securities pointed to sustained margin improvements ahead, citing the planned transition to in-house TI production and the completion of Remsima R&D amortization. “New launches such as Omliclo and Aptozma will reinforce top-line growth, while cost efficiency measures will continue to strengthen margins,” he said.

A Celltrion spokesperson emphasized, “The record Q2 results reflect the success of our high-margin product strategy and ongoing cost improvements. We are committed to leveraging these gains to expand our global presence through continuous innovation and market expansion.”

The company reiterated its ambition to establish itself as a top-tier global pharmaceutical company, pledging further investment in R&D and global commercialization efforts in the coming years.