[THE INVESTOR] Celltrion Healthcare is expected to improve its performance in the second half, said Hana Financial Investment on May 25, maintaining a “buy” recommendation and 120,000 won (US$111.03) target price. 

Its revenue in the first quarter surged 119.7 percent on-year to 128.4 billion won and operating profit came in at 8.4 billion won, said analyst Seon Min-jeong.

Operating profit was lower than expected as marketing costs increased from launching Truxima and Herzuma and personnel costs rose. The margins will naturally increase when sales advance in latter half. Sales of Inflectra in the US will pick up in earnest this year, forecast Seon noting that revenue from the biosimilar version of blockbuster rheumatoid arthritis drug Remicade rose 25 percent on-year in the first quarter.

Meanwhile Truxima has successfully been launched in Europe and is fast expanding market share. If Herzuma follows suit, it will be able to account for up to 25 percent of Celltrion Healthcare’s revenue, she added. 

By Hwang You-mee (glamazon@heraldcorp.com)