Celltrion Hit By Truxima Price Cut, Temporary Utilization Rate Drop

Intensifying competition in the global biosimilars space and a temporary drop in its factory utilization rate took a toll on Celltrion's earnings in the third quarter, but analysts still expect a rosy outlook next year amid the expected US launches of biosimilar rituximab and trastuzumab, and the first subcutaneous version of Remsima on the horizon in Europe.

Downward arrow — Lower selling prices, factory utilization hurt Celltrion in 3Q • Source: Shutterstock

Celltrion Inc. surprised the market with worse than expected third quarter earnings, as the company lowered the unit supply price of Truxima (biosimilar rituximab) in Europe to brace for intensifying competition, and the utilization rate dropped temporarily at its main production facility.

Third quarter sales, on a consolidated basis, were marginally down 0.4% from a year earlier to KRW231.1bn ($203.8m), as increased...