Celltrion

Dear Shareholders,

In recent times, the uncertainty in both domestic and international financial markets has led to increased volatility in the stock market. 
 

Despite this, we would like to inform you that Celltrion's business operations and growth strategy are proceeding as planned, without disruption. In this regard, we would like to provide an update on some of the key aspects of our business. 

1. Our current revenue guidance is expected to be met without difficulty.

• As announced on September 9, Celltrion has set revenue targets of 3.5 trillion KRW for 2024 and 5 trillion KRW for 2025.

   

• As of the third quarter of this year, we have already achieved a cumulative revenue of 2.4936 trillion KRW, and we anticipate no challenges in surpassing our 3.5 trillion KRW target for 2024. Given this growth momentum, we are confident that our 2025 revenue target of 5 trillion KRW will also be achievable.

   

• Globally, we are witnessing robust growth in bid wins and prescription performance across our established products, such as Remsima, as well as new offerings, Steqeyma(Stelara biosimilar) and Omlyclo(Xolair biosimilar). Notably, as of the fourth quarter, all foundational efforts to drive U.S. sales growth for Zymfentra have been successfully completed. This sets the stage for a significant acceleration in revenue growth, and we remain optimistic about our performance in the coming quarters

   

•   Regarding the potential impact of the U.S. presidential election results on market stability, as previously mentioned, the anticipated policies of the newly inaugurated Trump 2.0 administration are expected to continue and build upon the previous Trump administration’s initiatives, such as drug price reduction measures and the America First Healthcare Plan. This policy direction is likely to create a favorable environment for the expansion of biosimilar prescriptions, which is a key area of focus for Celltrion’s business. 

   

• Furthermore, the projected strengthening of the U.S. dollar, influenced by the administration’s "America First" policy, is expected to benefit Celltrion, given our strong reliance on export-driven revenue. Additionally, since our pharmaceutical products are exempt from tariffs under WTO regulations, we will not be impacted by potential tariff increases. As a result, if the Trump 2.0 administration takes office, we foresee a unique opportunity to focus on expanding our operations and improving performance, particularly in comparison to industries that may be more affected by policy shifts.
   

2. The groundwork for the CDMO business, poised to be a key growth driver, is advancing as planned. 

• After announcing our plans for expanding our CDMO (Contract Development and Manufacturing Organization) business in September, we have been making rapid progress. We plan to establish a new CDMO subsidiary, fully owned by Celltrion, by the end of this year. The selection of sites and the scale and configuration of facilities are also progressing quickly. 

   

• The project is advancing well, with the materialized business plan currently in its final review stage, and from next year, we will begin the design and construction of the plants and sales activities to lay the foundation for the CDMO business. 

3. We will focus on engaging with both domestic and international investors, beginning with the financial markets in Asia. 

From November 20th to the end of this year, Chairman Jung Jin Seo and other top management of Celltrion will visit key financial markets, such as Singapore and Hong Kong, to hold investor events. These events will be attended by global investors, and we will provide detailed explanations about our growth outlook, the potential of our CDMO business with detailed execution plans, our ongoing and upcoming innovative drug pipelines as our future growth drivers, and more.

• In January next year, we will participate in the JP Morgan Healthcare Conference, the largest healthcare conference in the world, where we will present a more detailed roadmap of our innovative drug pipelines including two ADC candidates, CT-P70 and CT-P71, which have recently shown positive outcomes. Additionally, Celltrion plans to unveil an expanded lineup of innovative drugs at the conference, featuring a cocktail antibody drug combined with Celltrion’s immunology agent, as well as an orally administered antibody treatment aimed at IBD.

   

• Celltrion will continue to actively engage in IR activities to ensure that the value of the company is well recognized by investors.

   

   

4. We are committed to prioritizing and enhancing shareholder value.

• As part of our shareholder value enhancement policy, Celltrion has been actively buying back its own shares. We have completed three share buyback programs this year, and with the ongoing fourth buyback, we will repurchase approximately 1.82 million shares, worth about 335.1 billion KRW in total, by the end of this year.

• In light of the recent escalation in domestic financial market uncertainty and to prevent excessive declines in our stock price, we are actively reviewing plans for additional share buybacks and are considering conducting share buybacks periodically until market conditions stabilize.

• In addition to these efforts, we will continue to explore various shareholder-friendly policies to further enhance shareholder value and ensure that our management practices are aligned with the best interests of our shareholders.

  
   

We assure you that we will continue to make every effort to maintain open communication with our shareholders.

 Lastly, we would like to make one request to our valued shareholders.

We kindly ask shareholders who have entered into securities lending agreements regarding Celltrion shares to terminate these agreements.

Despite the ban on short selling, the current short position in Celltrion shares is approximately 300 billion KRW, and the securities lending balance remains high at approximately 1.268 trillion KRW. While this figure has decreased somewhat, it remains at a high level. An excessively high level of loaned shares poses the risk of being exploited against the company, especially during periods of stock price volatility.

By terminating these securities lending agreements, shareholders will directly contribute to the long-term growth and value enhancement of the company.

We deeply appreciate the continued support and interest of our shareholders.