Celltrion to Buy Back ￦100B More, 2024 Total Hits ￦650B

[Kim Saemi, Edaily Reporter] Celltrion announced on June 26 that its board has approved an additional buyback of approximately 100 billion Korean won (KRW) in treasury shares. The repurchase will begin on June 27 via open-market purchases.

(Source=Celltrion)

The company stated that this move reflects its confidence in future growth and its commitment to enhancing shareholder value. This marks Celltrion’s seventh buyback this year, with the cumulative amount totaling around KRW 650 billion in 2024 alone.

In April, Celltrion Group Chairman Seo Jung-jin, holding company Celltrion Holdings, and affiliate Celltrion Skincure each announced plans to acquire shares worth KRW 50 billion, KRW 100 billion, and KRW 50 billion, respectively. Employees have also actively participated in purchasing company stock through employee stock ownership programs, collectively contributing around KRW 40 billion.

According to the company, this group-wide effort to purchase shares reflects the strong confidence of executives and employees in Celltrion’s intrinsic value and growth trajectory. Celltrion added that it sees its shares as undervalued amid domestic and global uncertainties and will continue exploring initiatives to boost market confidence and shareholder returns.

Last month, as part of its shareholder return strategy, Celltrion executed a bonus issue, granting 0.04 new common shares per existing share, totaling 8.49 million new shares. Beyond buybacks, the company is also canceling treasury shares to further enhance shareholder value. On May 21, it canceled approximately KRW 100 billion worth of treasury stock and plans to retire up to KRW 900 billion worth of shares in 2024 to reduce outstanding shares.

Celltrion is also working to improve corporate value. After achieving a record-breaking annual revenue of KRW 3.56 trillion in 2023, the company aims to surpass KRW 5 trillion in sales this year. It has already recorded the highest-ever quarterly sales in Q1 2024, driven by new product growth and expansion into new markets.

Additionally, Celltrion is speeding up drug development efforts. Following the establishment of a biosimilar portfolio comprising 11 products last year, the company is now aggressively expanding its pipeline. It is particularly focused on developing next-generation therapeutics such as antibody-drug conjugates (ADCs) and multispecific antibodies.

A Celltrion official commented, “Our continued buybacks and share cancellations are a clear signal to the market of our commitment to enhancing shareholder value.