Celltrion chairman, 2 affiliates to purchase $135 mil. Celltrion stocks
An exterior view of Celltrion’s second factory in Incheon / Courtesy of Celltrion
The chief of Celltrion, a major Korean biopharmaceutical firm, and its two affiliates will purchase 200 billion won ($135 million) worth of Celltrion stocks to enhance shareholder value, the company said Wednesday.
Celltrion Chairman Seo Jung-jin will purchase 50 billion won worth of Celltrion shares from May 9, using his private funds, while Celltrion Holdings and Celltrion Skincure plan to spend 100 billion won and 50 billion won, respectively, to buy the stocks, the company said in a press release.
"The chairman made the decision to show his commitment to responsible management and enhancing shareholders' value," the release said, adding the planned purchases will be made during trading hours.
Celltrion Holdings, the holding company of Celltrion Group, has a 21.96 percent stake in Celltrion, while Celltrion Skincure owns a 1.89 percent stake in the pharmaceutical firm.
Separate from the share purchase plan, Celltrion has recently taken aggressive steps to prop up corporate and shareholder value through stock buybacks and cancellations.
The company has been in the process of buying back its own shares worth 350 billion won since early this year while planning to cancel more than 800 billion won worth of stocks this year, the release said.
In a preemptive response to U.S. President Donald Trump's reciprocal tariffs, the company has already shipped enough inventory to the United States to meet customer demand for one year, a company spokesperson said.
"The company will decide on whether to build a production facility in the U.S. by the end of this year," the spokesperson added. (Yonhap)