Korean biopharmaceutical firm to buy back shares

Shown above is the head office of Celltrion in South Korea. The firm plans to use $56 million to buy back its shares in order to boost stock price. Photo courtesy of Celltrion

South Korea’s biopharmaceutical behemoth Celltrion announced on March 5 that the company would spend some 75 billion won ($56 million) to buy back its shares.

With the funds, the company plans to buy more than 420,000 shares on March 6 on the country’s main bourse in a move to boost its share price.

This is not the first time for Celltrion to buy back its shares. The firm spent about 1.25 trillion won to purchase its own shares and cancelled 2.3 million stocks worth around 500 billion won in January.

The cancellation came after its merger with its sales affiliate, Celltrion Healthcare.

Observers point out that the measures are caused by the weak share price of Celltrion despite the company’s recent exploits in the global market.

For example, the company is set to debut the autoimmune disease treatment Zymfentra in the lucrative U.S. market midway through this month.

Along the same line, the company opted to distribute more than 100 billion won in dividends in late 2024, a decision subject to the review of its board late this month.

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