Shareholder returns boosted amid record third-quarter earnings; 514,404 shares to be acquired

Buyback follows similar move last month; one-third of net profit earmarked for returns

Cancellation or dividend decision to be put to shareholders at 2027 annual general meeting

Celltrion's headquarters. [Celltrion]
Celltrion's headquarters. [Celltrion]

Celltrion has approved an additional share buyback worth around 100 billion won ($75.5 million), bringing its cumulative repurchases this year to 500 billion won.

The company's board met Monday and resolved to acquire 514,404 of its own shares through open-market purchases. The transaction is valued at approximately 100 billion won based on the closing share price the day before the board meeting, and the buyback will run from Tuesday through Jan. 26 next year.

The latest decision brings Celltrion's total confirmed buybacks for the year to 500 billion won. The company had approved a 100 billion won repurchase of 560,853 shares in September, pushing its year-to-date total to 400 billion won, and followed that up with another 100 billion won buyback within a month.

Celltrion said it pursued the repurchase to stabilize its share price and enhance shareholder value, citing its view that the company is undervalued relative to its solid earnings trajectory and medium- to long-term growth potential. The company posted record first-half earnings this year and has preliminarily recorded another quarterly high in the third quarter, with sales of around 1.5 trillion won and operating profit of around 510 billion won.

Whether the newly acquired shares will be canceled will be decided after gathering shareholder input at the annual general meeting in March 2027. Celltrion plans to compare the shareholder value impact of canceling the repurchased shares against expanding cash dividends — based on annual earnings and distributable profit — before choosing whichever approach delivers the greater return. If cancellation is chosen, the company will proceed through a separate board resolution following the general meeting.

Celltrion operates under a medium- to long-term policy of returning approximately one-third of its annual consolidated net profit for the period to shareholders through share cancellations or cash dividends.

The company intends to allocate cash generated from steady sales of its core products and growing prescriptions of new high-margin products in global markets, including the United States and Europe, in a balanced manner across research and development, production facility investment and shareholder returns.

"This is another demonstration of our commitment to enhancing shareholder value, backed by confidence in our solid earnings growth and long-term prospects," a Celltrion official said. "We will consistently honor our principle of returning one-third of consolidated net profit for the period and continue to share the fruits of our growth with shareholders."

Celltrion's decision to carry out a second buyback within a month, against a backdrop of record quarterly earnings, signals confidence in the company's cash-generating power — and reflects an effort to establish share repurchases not as a one-off measure to prop up the stock price, but as a regular, systematic component of its shareholder return program.


silverpaper@heraldcorp.com