Seoul: Celltrion Inc., South Korea's leading biopharmaceutical company, announced that its U.S. subsidiary has signed a deal to acquire a U.S. biopharmaceutical production facility. The move aims to mitigate risks associated with impending U.S. tariff hikes.
According to Yonhap News Agency, Celltrion USA Inc. will purchase the facility from Eli Lilly for 460 billion won (US$330 million), with plans to finalize the deal by the end of the year. "With this acquisition, we have secured a fundamental solution to hedge tariff risks, along with earlier steps, such as preemptively shipping two years' worth of inventory to the U.S. and expanding local contract manufacturing organization (CMO) deals," said Celltrion Chairman Seo Jung-jin during an online press conference.
By establishing a local production hub, Celltrion has created a comprehensive supply chain in the United States, covering the entire drug manufacturing process from production to commercialization. The company plans to invest 700 billion won in the plant, including the acquisition cost, and an additional 700 billion won for expansion.
In July, Celltrion was chosen as the preferred bidder to acquire the 37-acre facility in Branchburg, New Jersey, along with 10 acres of undeveloped land for future expansion to meet rising market demand. The Branchburg facility is a large-scale, FDA-approved drug substance manufacturing site compliant with current good manufacturing practice (cGMP) regulations. It has a proven track record in producing treatments for cancer and autoimmune diseases.
Seo also stated that the company will continue to manufacture pharmaceuticals for Lilly under a CMO agreement at the facility while producing Celltrion products there. In May, U.S. President Donald Trump signed an executive order to lower domestic drug prices by benchmarking them against those in other countries, which could lead to tariffs on pharmaceuticals imported into the country reaching up to 250 percent.
Celltrion has been expanding its global biosimilar portfolio, increasing its approved products from six to 11. It aims to commercialize 22 biosimilars by 2030 and 41 by 2033, planning to launch clinical trials for 13 original drugs by 2035. Its sole original drug, Zymfentra, is currently sold in the U.S. for autoimmune disease treatment.
As of 11:30 a.m., Celltrion's shares were trading 1.3 percent higher at 171,300 won, outperforming the Korea Stock Price Index's (KOSPI) 0.33 percent gain.