Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

<p>USFDA approved Celltrion’s Remsima, a biosimilar for JNJ’s Remicade, for use in treating rheumatoid arthritis, ulcerative colitis, Crohn’s, and other autoimmune diseases.  Celltrion’s management has set very high expectations for the product: sale of US$1.7 billion in 2017 in the U.S. The stocks of Celltrion Inc. (068270:KS)  and Celltrion Pharma (068760:KS) are up 3% and 30%, respectively,  on the news. We would avoid both names because we think this estimate is unrealistic. At the same time, we think it is too early in the game to take short positions.</p>

USFDA approved Celltrion’s Remsima, a biosimilar for JNJ’s Remicade, for use in treating rheumatoid arthritis, ulcerative colitis, Crohn’s, and other autoimmune diseases.  Celltrion’s management has set very high expectations for the product: sale of US$1.7 billion in 2017 in the U.S. The stocks of Celltrion Inc. (068270:KS)  and Celltrion Pharma (068760:KS) are up 3% and 30%, respectively,  on the news. We would avoid both names because we think this estimate is unrealistic. At the same time, we think it is too early in the game to take short positions.

Celltrion Inc

U.S. Remsima Expectations Too Optimistic