[THE INVESTOR] South Korea’s Celltrion denied rumors March 16 that the company plans to issue new stocks, in a move seen to ease investor concerns.
“Some shareholders said that there is speculation that the company is considering a capital increase. But it is groundless,” Celltrion said on its website.
Celltrion in Songdo, Incheon Park Hyun-koo/The Investor
The company which manufactures biosimilars -- cheaper, near replicas of biologic drugs that have lost patent protection -- expressed confidence in its cash flow as it expects strong earnings this year.
“All the investments in global clinical trials as well as research and development will be made with the company’s own cash reserves,” it said.
“This year, cash reserves are expected to top 380 billion won (US$336.3 million) as autoimmune disorder treatment Remsima began sales in the US while sales in Europe are expected to have smooth sailing,” the company said.
The company’s marketing affiliate Celltrion Healthcare will also provide stability to Celltrion’s cash flow with an upcoming initial public offering, it added.
By Park Han-na (email@example.com)