Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/991" target="_blank" data-smartkarma-citation="entities:991:1">Celltrion Inc (068270 KS)</a> 's Inflectra, a biosimilar to <a href="https://www.smartkarma.com/entities/1132" target="_blank" data-smartkarma-citation="entities:1132:1">Johnson &amp; Johnson (JNJ US)</a> 's Remicade, had little impact on the critical U.S. market in Q1. Remicade's revenue was down 6% Y/Y to US$1.67 billion, but four points of the decline reflected favorable prior year price adjustments booked in Q1 of 2016. U.S. revenue (most relevant data point here) was US$1.18 billion, down 2.4% Y/Y. In fact, volumes grew Y/Y with some price discounting to blunt Remsima's launch. <a href="https://www.smartkarma.com/entities/1131" target="_blank" data-smartkarma-citation="entities:1131:1">Pfizer Inc (PFE US)</a>, Celltrion's U.S. marketing partner, has Q1 results out on 2 May that should confirm the sluggish start.</p><p>As discussed in our last Insight on Celltrion and the U.S. market for biosimilars <a href="https://www.smartkarma.com/insights/recent-developments-not-encouraging" target="_blank" data-smartkarma-citation="insights:8294">Recent Developments Not Encouraging</a> , the lack of regulatory clarity around interchangeability will limit Inflectra's use to new patients (about 5% of Remicade's use) for the next 1-3 years. Yet Celltrion's CEO continues to forecast a faster uptake in recent interviews.  </p>

Celltrion Inc (068270 KS) 's Inflectra, a biosimilar to Johnson &amp; Johnson (JNJ US) 's Remicade, had little impact on the critical U.S. market in Q1. Remicade's revenue was down 6% Y/Y to US$1.67 billion, but four points of the decline reflected favorable prior year price adjustments booked in Q1 of 2016. U.S. revenue (most relevant data point here) was US$1.18 billion, down 2.4% Y/Y. In fact, volumes grew Y/Y with some price discounting to blunt Remsima's launch. Pfizer Inc (PFE US), Celltrion's U.S. marketing partner, has Q1 results out on 2 May that should confirm the sluggish start.As discussed in our last Insight on Celltrion and the U.S. market for biosimilars Recent Developments Not Encouraging , the lack of regulatory clarity around interchangeability will limit Inflectra's use to new patients (about 5% of Remicade's use) for the next 1-3 years. Yet Celltrion's CEO continues to forecast a faster uptake in recent interviews.  

Celltrion Inc

The Disconnect Is Growing