In-depth Investment Analysis of South Korea's Biopharmaceutical Industry and Celltrion

The growth of South Korea’s biopharmaceutical industry is fueled by multiple structural factors:

• The global biopharmaceutical market size reached
  422.5 billion USD
  in 2024 and is expected to grow to
  921.5 billion USD
  by 2034, with a compound annual growth rate (CAGR) of
  8.2%
  [1]
• The biosimilar CDMO (Contract Development and Manufacturing Organization) market is growing even more rapidly, with a market size of 30 billion USD in 2025 and an expected
  109.07 billion USD
  by 2035, a CAGR of
  13.1%
  [0]
• The global biosimilar sales totaled approximately
  10.285 billion USD
  in 2024, with market penetration continuing to increase[2]

• New technologies such as monoclonal antibodies, recombinant proteins, cell and gene therapies are revolutionizing fields like oncology, immunology, and neurology[1]
• The application of AI technology in drug discovery, bioprocess optimization, and personalized medicine is improving R&D efficiency[1]
• Over
  60%
  of outsourcing demand growth and
  45%
  of biologic production growth are driving the expansion of global CDMO partnerships[0]

• South Korea accounts for approximately
  30%
  of the global biopharmaceutical manufacturing market share, second only to North America (40%) and Europe (25%)[0]
• It is known for its
  cost-effectiveness
  and
  manufacturing capabilities
  , especially in monoclonal antibody and cell therapy production
• South Korea’s biopharmaceutical market is expected to grow from 22.1 billion RMB in 2024 to 30.2 billion RMB by 2035[1]

• Samsung Biologics
  : Announced the expansion of its fourth factory in 2025, increasing total capacity by
  30%
  , with contract projects growing by
  22%
  year-on-year[0]
• Celltrion
  : A global leader in biosimilars, with 12 marketed biosimilar products[2]

Based on brokerage API data and industry reports[4][5]:

Indicator	2024	2025 Forecast	Growth Rate
Sales	3.56 trillion KRW	4.11 trillion KRW	+15.4%
Operating Profit	492 billion KRW	1.16 trillion KRW	+135.8%
Operating Margin	13.8%	28.2%	+14.4 percentage points

This marks Celltrion’s

[4][5], driven mainly by .

Chart shows: From 2021 to 2025, Celltrion’s sales grew from 928.5 billion KRW to 4.11 trillion KRW, operating profit from 152.8 billion KRW to 1.16 trillion KRW, and operating margin from 16.46% to 28.22%[0]

• Sales reached
  1.404 billion USD
  in 2024, up
  96.36%
  year-on-year[2]
• It is a key product for treating autoimmune diseases such as rheumatoid arthritis
• Approved for marketing by the U.S. FDA and EU EMA[2][3]

• Currently has
  12
  marketed biosimilar products[2]
• As many as
  28
  biosimilar projects in R&D, providing momentum for future revenue growth[2]
• Plans to include blockbuster products such as Ocrevus®, Cosentyx®, Keytruda®, and Darzalex® in its biosimilar development options[2]

Based on brokerage API financial analysis[0]:

Indicator	Value	Evaluation
Market Capitalization	39.60 trillion KRW	Leading global biopharmaceutical enterprise
ROE (Return on Equity)	4.35%	Low, but in the expansion phase
Net Profit Margin	18.94%	Excellent level
Operating Margin	22.84%	Strong profitability
Current Ratio	1.38	Good liquidity
Quick Ratio	0.70	Need to pay attention to short-term liquidity

• Financial Attitude Classification
  : Conservative, showing a high depreciation/capital expenditure ratio, with room for profitability improvement as investments mature[0]
• Debt Risk
  : Low-risk classification, sound financial structure[0]
• Free Cash Flow
  : Reached 568.3 billion KRW in the latest period, good cash generation capacity[0]

• High-end biosimilars
  continue to gain traction: Key products like Remsima® grew by 96.36% in 2024, indicating strong market demand[2]
• Diversified product line
  : 12 marketed products cover multiple therapeutic areas, reducing the risk of reliance on a single product[2]
• Rich R&D pipeline
  : 28 projects in R&D provide continuous momentum for long-term growth[2]

• Regulatory approval advantages
  : Products have been approved by the U.S. FDA and EU EMA, with high market access barriers[2][3]
• Strategic cooperation network
  : Established long-term partnerships with global distribution partners such as iQone Healthcare[3]
• Acquisitions and capacity expansion
  : Recently acquired a biopharmaceutical production facility from Eli Lilly in the U.S. and plans to追加投资 to expand capacity[5]

• The global biosimilar market reached 10.285 billion USD in 2024 and is expected to continue growing rapidly[2]
• Over
  50%
  of new biopharmaceutical drugs rely on CDMO services, with huge room for market penetration improvement[0]
• The monoclonal antibody market size continues to expand, dominating the biopharmaceutical market[1]

• Determined a cash dividend of
  750 KRW
  per common share in 2025, with total dividends of approximately 164 billion KRW[5]
• Invested over
  1 trillion KRW
  in shareholder returns (including share repurchases and dividends) in 2024[5]
• Committed to achieving a 3-year average
  40%
  shareholder return target by 2027[5]

• P/E Ratio
  : 53.79x, higher than the industry average[0]
• P/B Ratio
  : 2.38x[0]
• P/S Ratio
  : 10.16x[0]
• Current valuation has fully reflected high growth expectations, requiring continuous outperformance to support

• Currently in a
  downtrend
  , to be confirmed[0]
• Support level at 178,200 KRW, resistance level at 192,100 KRW[0]
• Beta value only 0.12
  , low correlation with the broader market, obvious independent trend[0]

Chart shows: Celltrion’s stock price fluctuated significantly from 2023 to 2025, currently in a technical adjustment phase[0]

• Samsung Biologics
  : Capacity expansion by 30%, contract projects growth by 22%, fierce competition[0]
• International giants
  : More than 100 companies including Sandoz, Amgen, Pfizer are investing in biosimilar development[2]
• Price pressure
  : As more generics enter the market, price competition may intensify

• Regulatory approval for biosimilars is complex, with different standards across countries
• Original drug manufacturers may delay generic drug launches through patent litigation
• Changes in U.S. and European regulatory policies may affect market access

1. ✅
   Rich product pipeline
   : 28 R&D projects provide long-term growth engines[2]
2. ✅
   Strong key products
   : Remsima®'s 96.36% growth shows market leadership[2]
3. ✅
   Continuous capacity expansion
   : Acquired U.S. factory and plans to追加投资[5]
4. ✅
   High industry prosperity
   : Biosimilar market CAGR of 13.1%[0]
5. ✅
   Sound financial structure
   : Low debt risk, sufficient free cash flow[0]

1. ⚠️
   High base effect
   : 2025 operating margin of 28.2% is at a historical high, with limited room for further significant improvement
2. ⚠️
   Valuation pressure
   : P/E ratio of 53.79x requires sustained high growth[0]
3. ⚠️
   Intensified competition
   : Competitors like Samsung Biologics are expanding rapidly[0]
4. ⚠️
   Technical adjustment
   : Stock price is in a downtrend, short-term pressure[0]

• Sales growth rate
  : Expected to remain at
  12-18%
  (slightly slower than 2025’s 15.4%)
• Operating profit growth rate
  : Expected to drop to
  25-35%
  (2025’s 135.8% is unsustainable)
• Operating margin
  : Expected to stabilize in the
  25-28%
  range

• South Korea’s biopharmaceutical market is expected to grow from 22.1 billion RMB in 2024 to 30.2 billion RMB by 2035, with a CAGR of approximately
  3.0%
  [1]
• CDMO market opportunities are huge, with a CAGR of
  13.1%
  from 2025 to 2035[0]
• South Korean enterprises will continue to benefit from
  manufacturing cost advantages
  and
  technological innovation capabilities

• 2025-2027
  : Consolidate global biosimilar leadership and expand market share
• 2028-2030
  : Expand into innovative biopharmaceuticals to upgrade product portfolio
• Post-2030
  : Develop into an integrated biopharmaceutical group covering generics, innovative drugs, and CDMO

1. Valuation Risk
   : Current P/E ratio of 53.79x is at a high level; if performance falls short of expectations, there may be valuation correction pressure[0]
2. Competition Risk
   : Competitors like Samsung Biologics are expanding rapidly, which may squeeze market share and profit margins[0]
3. Regulatory Risk
   : Changes in regulatory policies of U.S. FDA, EU EMA, etc., may affect product approval and market access
4. Exchange Rate Risk
   : Fluctuations in the KRW/USD exchange rate may affect the performance of overseas businesses
5. Technical Risk
   : New drug R&D has uncertainties, and projects in R&D may face failure or delay

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[0] Gilin API Data (including Celltrion company profile, financial analysis, technical analysis, stock price data, etc.)

[1] Global Market Insights - “Biopharmaceutical Market 2025-2034” (https://www.gminsights.com/zh/industry-analysis/biopharmaceutical-market)

[2] Global Growth Insights - “Biopharmaceutical CDMO Market Growth and Trends 2026-2035” (https://www.globalgrowthinsights.com/zh/market-reports/biopharmaceutical-cdmo-market-121135)

[3] Celltrion Official Website - Company Profile and Product Information (https://www.celltrion.com/en-us/company/media-center/press-release/3521)

[4] Sina Finance - “South Korean Biopharmaceutical Giant Celltrion’s Operating Profit Exceeds 1 Trillion KRW for the First Time This Year” (https://finance.sina.com.cn/stock/usstock/c/2025-12-31/doc-inheshqn6691139.shtml)

[5] Daily Economic News - “Celltrion Group Acquires Eli Lilly’s Biopharmaceutical Production Facility in the U.S.” (https://www.mk.co.kr/cn/it/11489993)

[6] Taiwan Biotech Medical Industry Policy Promotion Center - “2025 Biotechnology Industry Development Overview” (https://ccd.nat.gov.tw/biopharm/images/2025/2-2025 Biotechnology Industry in TaiwanV1001.pdf)

[7] 36Kr - Celltrion 2025 Performance Forecast Report (https://www.36kr.com/newsflashes/3619006643668232)

Note: Some data is sourced from South Korean and international public information, and there may be differences in statistical calibers. Investment decisions should take multiple factors into account; investors are advised to conduct independent research and consult professional investment advisors.