Celltrion Healthcare, a subsidiary of Celltrion, said Friday that it recorded sales of 713.5 billion won ($634.3 million) in 2018, down 22.5 percent from the previous year. The company’s operating profit also turned to a deficit.
“We discussed ways to improve our distribution structure with global partners in the second half of 2018,” the company said. “Such discussion led to a strategic reduction in sales volume, which in turn eroded our 2018 earnings.”
Celltrion Healthcare is partnering with 37 global retailers specializing in each region and selling products through its distributors. The company plans to become more active in the global market this year based on its comprehensive marketing know-how and experience accumulated through partnerships with distributors.
To this end, the company said it plans to continue its discussion to improve distribution structure until the first half of this year.
Celltrion Healthcare will also establish overseas subsidiaries in crucial regions and increase access to the healthcare market by hiring local personnel. In addition to the Hungarian and Turkish subsidiaries, the company established subsidiaries in more than 10 countries last year, including those in the United Kingdom and the Netherlands. The company now owns 31 subsidiaries worldwide.
This year, the company plans to establish a subsidiary in France.
Using its subsidiaries, the company will complete a direct sales system for Remsima SC, while strengthening marketing and sales capabilities for other products.
“As the result of reducing sales volume in the fourth quarter, the current volume of partner companies is less than half of what they should be holding,” a company official said. “Accordingly, sales and profitability should improve in the first quarter of this year as we plan to supply pharmaceuticals to local suppliers in more stable ways.”
The company will also launch Remsima SC, Truxima and Herzuma in the U.S. soon, expecting the decline in earnings will be temporary, and its sales and profitability will rebound, the official added.