Celltrion (068270.KS) said Friday it will review measures to enhance shareholder value, citing that its stock price has been undervalued amid a stock market boom that has pushed the KOSPI index above 3,000.
In a "Letter to Shareholders" posted on its website the same day, Celltrion assessed that "due to external factors such as recent geopolitical uncertainties in the Middle East, expanded volatility in international oil prices, and supply-and-demand concentration in certain industry sectors, corporate values across the bio and pharmaceutical sectors have not been adequately recognized," adding that "Celltrion's corporate value remains in an excessively undervalued range."
The company further stated that "management is taking the current situation very seriously," adding, "While we are closely reviewing the current market environment and the possibility of shareholder value impairment, if this situation persists, the company and major shareholders will comprehensively review various measures together to enhance shareholder value." The company also emphasized that its mid- to long-term growth strategies, including expansion of the biosimilar business, strengthening of the new drug pipeline, and expansion of global market share, are being pursued without disruption.
As supporting evidence, Celltrion noted that "achieving record first-quarter revenue and improved profitability demonstrates that our fundamentals are stronger than ever," adding, "We have an export-oriented business structure, so exchange rates do not act as a risk, and given the nature of our therapeutics-focused business portfolio, sensitivity to economic cycles is also low." The company particularly cited that the possibility of fundamental impairment is very low as the basis for its judgment.
Celltrion stated, "We will do our best to strengthen business competitiveness and secure a foundation for sustainable growth," adding, "We will share second-quarter results as quickly and transparently as possible, and continue shareholder-friendly policies that meet shareholder expectations based on market monitoring."
Meanwhile, Celltrion's closing price on the previous trading day was 183,200 won. The stock, which had been at the 200,000 won level at the end of last month, has fallen approximately 9% this month.
