Celltrion Healthcare, Leckirona reflects sales from the second quarter (Meritz Securities)

Meritz Securities predicted Celltrion Healthcare's good performance due to its recognition of sales of COVID-19 treatment Leckirona, starting in Pakistan in the second quarter. Investment opinion 'buy' and target stock price were lowered to KRW 140,000.

"Celltrion Healthcare was sluggish with an operating profit of KRW 31.5 billion in the first quarter. It was due to a temporary drop in sales due to the adjustment of the supply plan of Truxima for North America," Meritz Securities said in a report on the 18th.

"The margin fell sharply due to an increase in sales and administrative expenses, such as a drop in the portion of profitable U.S. sales and an increase in labor costs and payment fees to prepare for direct sales," Meritz Securities added.

Operating profit for the second quarter was 102.2 billion won, which is expected to be good compared to the first quarter. The reason for the positive results in the second quarter was the expectation of growth in sales of Remsima SC Euplima, a new product that normalized the previous level of North American Truxima sales.

Meritz Securities added, "Celltrion Healthcare will maintain its purchase of investment opinions as sales of COVID-19 treatment Leckirona will be reflected starting in Pakistan in the second quarter.".

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com