Cumulative Buyback This Year Exceeds 405 Million USD, Reinforcing Commitment to Shareholder Value
South Korean pharmaceutical company Celltrion [068270] announced on the 20th that its board of directors has resolved to conduct an additional share buyback program valued at approximately 73 million USD.
The shares to be acquired in this buyback total 649,351 shares, and the acquisition will be conducted through open market purchases starting from the 21st.
This decision marks Celltrion’s sixth share buyback this year, bringing the cumulative buyback amount to approximately 405 million USD. This figure exceeds last year’s total buyback amount of approximately 321 million USD.
Celltrion maintains its policy of fully retiring the shares acquired this year. The value of shares already retired or decided to be retired since January totals approximately 662 million USD, surpassing last year’s retirement value of approximately 515 million USD.
In addition to the company’s share buybacks, the Celltrion Group is reinforcing its commitment to responsible management. Chairman Seo Jung-jin, the holding company Celltrion Holdings, and affiliate Celltrion Skincure have also recently decided to acquire shares valued at approximately 37 million USD, 73 million USD, and 37 million USD, respectively.
Furthermore, Celltrion employees are voluntarily participating in an employee stock ownership plan valued at approximately 29 million USD, based on the judgment that the current stock price is undervalued compared to the intrinsic corporate value.
When the company’s direct share buybacks are combined with the market purchases by major shareholders, affiliates, and employees, the total scale amounts to approximately 589 million USD. The company explained that this reflects confidence in the intrinsic value of the company and the commitment to protecting long-term shareholder interests.
Celltrion believes that the corporate value remains undervalued due to internal and external uncertainties and is therefore continuously pursuing share buybacks and retirements to enhance shareholder value and protect interests.
In addition to shareholder returns, Celltrion is accelerating business expansion and new drug development. It achieved its goal of establishing an 11-biosimilar portfolio earlier than planned this year and plans to commence global clinical trials for next-generation antibody-drug conjugates (ADCs).
A Celltrion official stated, “Amid increasing uncertainty, we are accelerating shareholder value enhancement through additional share buybacks based on the judgment that the corporate value is undervalued.” He added, “Celltrion will continue to dedicate itself to improving corporate value and will share the generated profits with shareholders, growing together.”
The company further stated that if the undervaluation of the company’s value persists due to unstable internal and external market conditions, it plans to actively implement shareholder-friendly policies including share buybacks and retirements to protect shareholder interests.
