(Celltrion)
(Celltrion)

Celltrion, a major South Korean biopharmaceutical company, said Wednesday its second-quarter net profit fell 19.3 percent from a year earlier due to provisions related to ongoing legal disputes.

For the three months ended June 30, net profit declined to 63.3 billion won ($45.6 million) from 78.4 billion won in the same period last year, the company said in a regulatory filing.

"We set aside provisions in preparation for potential compensation related to ongoing legal disputes. These provisions impacted our quarterly bottom line," a company spokesperson said, without elaborating.

Operating profit more than tripled to 242.5 billion won from 72.4 billion won, while sales rose 9.9 percent to 961.5 billion won from 874.7 billion won.

The company said increased global sales of its flagship biosimilars, including Remsima SC, Yuflyma and Vegzelma, supported quarterly earnings.

These high-margin products accounted for 53 percent of total sales in the second quarter.

In the first half of the year, net income surged 73 percent to 171.6 billion won from 99.2 billion won a year earlier.

Celltrion expects strong earnings to continue in the second half, as it plans to gradually launch five new biosimilars -- Omlyclo, Avtozma, Eydenzelt, Stoboclo and Osenvelt -- in global markets later this year.

The company aims to achieve 5 trillion won in annual sales this year, up 40 percent from a record 3.56 trillion won last year.

Celltrion has significantly expanded its global biosimilar portfolio, with the number of approved products rising from six to 11.

It plans to commercialize 22 biosimilar products by 2030, when the global market is projected to grow to 261 trillion won from 138 trillion won this year. (Yonhap)