Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>Invest Chosun recently reported that the three Celltrion Group companies including Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm are close to announcing a merger in July.</li>
<li>Although Celltrion was not included this time as suppliers of Humira biosimilar products by OptumRX, there is still a potential for Cigna Express Scripts to include Celltrion's product this year.</li>
<li>We think Celltrion Inc and Celltrion Healthcare's share prices are oversold. </li>
</ul>


Invest Chosun recently reported that the three Celltrion Group companies including Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm are close to announcing a merger in July.
Although Celltrion was not included this time as suppliers of Humira biosimilar products by OptumRX, there is still a potential for Cigna Express Scripts to include Celltrion's product this year.
We think Celltrion Inc and Celltrion Healthcare's share prices are oversold. 


Celltrion Group Merger Announcement in July & Oversold Post Disappointing Exclusion by OptumRX?

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Celltrion Healthcare   / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/celltrion-healthcare" target="_blank" data-smartkarma-citation="entities:23641:1" rel="noopener">Celltrion Healthcare (091990 KS)</a> is expected to launch Humira biosimilar, Yuflyma, in the U.S. market in July 2023. Despite heavy competition, as high-concentration citrate-free formulation, Yuflyma has competitive edge.</li>
<li>In April 2023, Celltrion has launched bevacizumab biosimilar, Vegzelma in the U.S. Vegzelma will be the first product that the company will be directly selling in the U.S.</li>
<li>Through portfolio expansion, Celltrion increased target market size to $53.7B in 2023 from $20.6B in 2020, representing 161% growth. For 2024, the target market is expected to increase to $91.3B.</li>
</ul>



Celltrion Healthcare (091990 KS) is expected to launch Humira biosimilar, Yuflyma, in the U.S. market in July 2023. Despite heavy competition, as high-concentration citrate-free formulation, Yuflyma has competitive edge.
In April 2023, Celltrion has launched bevacizumab biosimilar, Vegzelma in the U.S. Vegzelma will be the first product that the company will be directly selling in the U.S.
Through portfolio expansion, Celltrion increased target market size to $53.7B in 2023 from $20.6B in 2020, representing 161% growth. For 2024, the target market is expected to increase to $91.3B.


Celltrion Healthcare (091990 KS): Portfolio Enhancement to Drive Business Growth

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>The three Celltrion companies are showing the same pattern of boosting share prices towards the yearend T-1 ex-date. This isn't unique to Celltrion, but the intensity is high for them.</li>
<li>Celltrion's yearend dividend effect has an inverse correlation with the market's overall performance. Fortunately, this year's market-wide performance was the worst in the past five years.</li>
<li>For this year, the dividend yield isn't bad either, swing on Dec 17 to T-1 ex-date or day trade on T-1 ex-date should provide juicy returns based on past patterns.</li>
</ul>


The three Celltrion companies are showing the same pattern of boosting share prices towards the yearend T-1 ex-date. This isn't unique to Celltrion, but the intensity is high for them.
Celltrion's yearend dividend effect has an inverse correlation with the market's overall performance. Fortunately, this year's market-wide performance was the worst in the past five years.
For this year, the dividend yield isn't bad either, swing on Dec 17 to T-1 ex-date or day trade on T-1 ex-date should provide juicy returns based on past patterns.


Celltrion Siblings Announced Dividends: Trading Based on Past Patterns

<ul>
<li>Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm all announced much higher dividend payments for this year as compared to last year. </li>
<li>Based on the new dividend payments, the dividend yields are as follows: (Celltrion Inc - 4.2%, Celltrion Healthcare - 4.2%, and Celltrion Pharm - 5%). </li>
<li>Merger of three companies is likely to have long-term positive impact on the their share prices. Although exact timing is uncertain, 2023 could be the year of this merger. </li>
</ul>


Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm all announced much higher dividend payments for this year as compared to last year. 
Based on the new dividend payments, the dividend yields are as follows: (Celltrion Inc - 4.2%, Celltrion Healthcare - 4.2%, and Celltrion Pharm - 5%). 
Merger of three companies is likely to have long-term positive impact on the their share prices. Although exact timing is uncertain, 2023 could be the year of this merger. 


Celltrion Group Companies - Sharp Increase in Dividends

<ul>
<li>After the market close today, it was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block deal.</li>
<li>The block deal price ranges are at 6 to 9 percent discount to current prices of Celltrion and Celltrion Healthcare.</li>
<li>We would take this take this deal due to settling of the accounting issue, more reasonable valuations, and sizeable block deal discount range. </li>
</ul>


After the market close today, it was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block deal.
The block deal price ranges are at 6 to 9 percent discount to current prices of Celltrion and Celltrion Healthcare.
We would take this take this deal due to settling of the accounting issue, more reasonable valuations, and sizeable block deal discount range. 


Block Deal Sale of Celltrion & Celltrion Healthcare by ION Investment

South Korea

Celltrion Pharm Inc. manufactures and sells pharmaceutical products.  The Company products inclue drugs for for hepatic diseases, digestion, diabetes, cold and fever, anti-inflammatory, and veterinary medical products.  Celltrion also provides pharmaceutical raw materials.

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Celltrion Pharm (068760 KS)

Celltrion Group Merger Announcement in July & Oversold Post Disappointing Exclusion by OptumRX?

All three Celltrion Group companies' share prices rallied strongly yesterday after Chairman Seo of Celltrion mentioned a decision on the merger can...

Douglas Kim

Celltrion Healthcare (091990 KS): Portfolio Enhancement to Drive Business Growth

Celltrion Healthcare is expected to launch Humira biosimilar in US in July 2023. Through portfolio expansion, Celltrion aims to increase target...

Tina Banerjee

Celltrion Siblings Announced Dividends: Trading Based on Past Patterns

The three Celltrion companies all announced yearend dividends last Friday after the market closed. This post investigates past patterns for how we...

Sanghyun Park

Celltrion Group Companies - Sharp Increase in Dividends

Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm all announced much higher dividend payments for this year as compared to last year.

Douglas Kim

Block Deal Sale of Celltrion & Celltrion Healthcare by ION Investment

It was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block...

Douglas Kim

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