Retirement of 490,000 shares reduces total shares outstanding, expected to boost per-share value; additional W100b buyback underway; three-year cumulative cancellations reach 8.4% of issued shares; record Q1 earnings keep annual sales target of W5.3tr on track

An exterior view of Celltrion's headquarters. [Celltrion]
An exterior view of Celltrion's headquarters. [Celltrion]

Celltrion has completed the cancellation of approximately 100 billion won ($66 million) worth of its own shares, a move aimed at stabilizing its share price and maximizing shareholder value. The company said it plans to accelerate a broader shareholder return program totaling 2 trillion won this year.

Celltrion said Thursday that the cancellation of roughly 100 billion won in treasury shares — part of its ongoing share price support and shareholder return efforts — was reflected in the market through a revised listing.

The shares permanently retired in the transaction totaled 488,977, or approximately 490,000. As a result, Celltrion's total shares outstanding fell from roughly 222.12 million to approximately 221.63 million. The reduction in market float is expected to improve earnings per share and lift the intrinsic value of each remaining share.

The cancellation follows through on a previously disclosed plan to acquire and fully retire treasury shares. Celltrion said it is rolling out additional shareholder return measures to strengthen market confidence.

The company is currently buying back an additional 100 billion won in shares. If that tranche is also fully cancelled this year as planned, cumulative share cancellations for the year alone are expected to approach 2 trillion won. Over the past three years, Celltrion has retired approximately 18.56 million shares in total — equivalent to about 8.4% of its current shares outstanding — a level the company describes as the largest shareholder return measure in the history of Korea's pharmaceutical and biotech industry.

At the same time, Celltrion is implementing a comprehensive market support package announced last month. The company is carrying out a bonus share issuance of roughly 10.92 million shares, while both the company and its largest shareholder are each buying 100 billion won worth of shares on the open market, for a combined 200 billion won. Employees are also voluntarily participating through an employee stock ownership plan, part of what the company calls a company-wide culture of responsible management.

The aggressive share cancellations and shareholder return measures are backed by strong earnings fundamentals and confidence in future growth. Driven by expanding global sales of high-margin new biosimilar products, Celltrion posted record quarterly sales of 1.145 trillion won and operating profit of 321.9 billion won in the first quarter, demonstrating its earnings strength.

Looking further ahead, Celltrion said it is on track with its medium- to long-term roadmap — including expanding its biosimilar portfolio, advancing next-generation drug development and entering the contract development and manufacturing business — with the goal of hitting its annual targets of 5.3 trillion won in sales and 1.8 trillion won in operating profit this year.

"The successive share cancellations and additional buybacks reflect a strong conviction in the company's solid financial fundamentals and its capacity for sustained future growth," a Celltrion official said. "We will continue to pursue shareholder return expansion and strengthen the core competitiveness of our business as twin pillars, delivering sustainable growth and a firm improvement in corporate value."


silverpaper@heraldcorp.com