Integrated Celltrion launches with goal of 40T market cap

Celltrion+Celltrion Healthcare to launch integrated corp….Merger completion after new stock listing next year.

Market capitalization of the integrated Celltrion is expected to reach around 40T won.

Two-phase merger with Celltrion Pharm within 6 months…12T won sales target by 2030.

Celltrion and Celltrion Healthcare are set to launch an integrated corporation.

 

The market capitalization of the integrated Celltrion is expected to reach around 40 trillion won.

 

The launch of the integrated Celltrion is anticipated to unify the previously dispersed biosimilar production and distribution processes.

 

This merger may address longstanding controversies such as allegations of unfair business partnership and inflation of sales figures.

 

The newly merged entity aims to expand its business focus from primarily biosimilars to a new drug development.

 

Seo Jung-jin, the chairman of Celltrion, announced company’s initiative to increase the sales to 12 trillion won by 2030 through this integration.

 

Celltrion and Celltrion Healthcare set to launch integrated corp…Next merger with Celltrion Pharm within six months. According to the pharmaceutical industry on the 28th, Celltrion and Celltrion Healthcare are launching their integrated corporation.

 

Celltrion will acuire Celltrion Healthcare through absorption-type merger.

 

The merger will be carried out by issuing new shares of Celltrion to the shareholders of Celltrion Healthcare.

 

The listing of the new shares of Celltrion is scheduled for Jan.

 

12, 2024.

 

Once the listing is completed, all merger procedures will be finalized.

 

After the merger, there will be a minor change in the ownership structure of the Celltrion Group.

 

Currently, Celltrion Holdings holds 20.1% stake of Celltrion and 24.3% stake of Celltrion Healthcare shares.

 

Celltrion is still holding 54.8% stake of Celltrion Pharm.

 

합병 후 예상 지배구조(자료 셀트리온)

After the merger, Celltrion Holdings will acquire 21.5% stake in integrated Celltrion.

 

Integrated Celltrion will continue to have 54.8% stake in Celltrion Pharm.

 

The next merger plan of Integrated Celltrion is to merge with Celltrion Pharm within the next six months.

 

Celltrion Group initially considered a three-company merger but decided to proceed with two-phase merger because of potentially conflicting shareholder interests.

 

Merger would help dispel accusations of ‘unfair business partnership’ · ‘inflation of sales figures’, and they will reinforce transparency The launch of the integrated Celltrion is expected to unify the previously dispersed biosimilar production and distribution operations that were divided between the two companies.

 

This move is also anticipated to address persistent controversies such as 'unfair business partnership ' or ‘inflation of sales figures.' Until now, Celltrion Group's biosimilar business operated in a structure where Celltrion developed and manufactured products, and these products were subsequently purchased by Celltrion Healthcare for distribution and sales in international markets.

 

Since Celltrion Healthcare had an exclusive deal to sell Celltrion's biosimilar products, there were consistent allegations in the industry of a single business partnership.

 

Additionally, when Celltrion Healthcare purchased products from Celltrion for international markets, sales were recorded for both companies, leading to criticisms of inflated sales figures.

 

According to the Fair Trade Commission, Celltrion Group had the highest proportion of internal transactions last year among large corporations (those with assets over 5 trillion won) required to disclose their business operations.

 

For six consecutive years since 2017, Celltrion Group ranked first, with 62.5% of their total sales originating from transactions within the group.

 

In comparison, the average proportion of internal transactions for large corporations was 33.4%.

 

The launch of the integrated Celltrion would effectively address these controversies.

 

This is attributed to the fact that drug development, manufacturing, and distribution will all be consolidated within a single entity, simplifying the transaction process, reducing costs, and enhancing transparency.

 

The market cap of the integrated Celltrion will reach 40 trillion won… Blueprint of “becoming a global big pharma developing biosimilars & new drugs” The pharmaceutical industry anticipates that the integrated Celltrion's market capitalization will reach 40 trillion won.

 

This would place the company as the 8th largest company on the stock market, comparable to Hyundai (41.8621 trillion won) and POSCO Holdings (21.7782 trillion won) and higher than Kia (38.7571 trillion won) and Naver (36.0547 trillion won), in terms of market value based on the closing price on the 27th.

 

After completing the merger with Celltrion Pharm next year, the total market capitalization of the group is expected to expand to 42 trillion won, leaping from the 13th to the 6th largest company on the stock market.

 

셀트리온 통합법인의 2030년 매출 12조원 목표(자료 셀트리온)

The newly launched integrated Celltrion is aimed at becoming a global big pharmaceutical company, expanding business from biosimilars to new drug development.

 

The chairman, Seo, has set a goal of achieving 12 trillion won in sales by 2030.

 

The company’s initiative for its biosimilars business is aimed at commercializing 22 products by 2030.

 

In line with this, the company is considering the construction of a fourth plant.

 

Additionally, in the new drug business, the focus will be on Zymfentra, which recently received approval from the U.S.

 

Food and Drug Administration (FDA) in October.

 

Starting next year, the company will also initiate new drug development projects using ADC and mRNA platforms with the goal of making the new drug division contribute 40% of the total sales by 2030.