Celltrion to buy back $56.2 million of stocks to boost 'underrated' valuation

Korean biopharmaceutical firm Celltrion plans to spend $56.2 million to buy back its shares in an effort to boost its valuation.

[YONHAP]

Korean biopharmaceutical firm Celltrion said on Tuesday that it will spend around 75 billion won ($56.2 million) to buy back its shares.

The buyback of a total of 425,985 shares worth some 75 billion won will take place on Wednesday, according to the company.

Celltrion aims to boost shareholder value and stabilize its stock prices with the move.

The company noted that its corporate value remains underrated despite recent milestones, such as applications for the regulatory approval of new biosimilar products and the launch of new medicines, including the autoimmune disease treatment Zymfentra, in the United States.

Celltrion bought back some 1.25 trillion won worth of its stocks last year and canceled a combined 2.3 million stocks worth about 495.5 billion won in January, following a merger with its sales and marketing affiliate, Celltrion Healthcare.

Celltrion elected to distribute a total of 103.7 billion won in dividends, or 500 won per share, late last year. The funds will be dispersed after the board confirms its agenda on March 26.

Shares of Celltrion dropped 2 percent to close at 176,100 won Monday. The Kospi gained 1.21 percent.

BY JIN MIN-JI, YONHAP [jin.minji@joongang.co.kr]