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 acquisition aims to mitigate risks associated with potential U.S. tariff hikes.
According to Yonhap News Agency, Celltrion USA Inc. will take over a production facility from Eli Lilly for 460 billion won (US$330 million), with plans to finalize the deal by the end of the year. Celltrion Chairman Seo Jung-jin highlighted the strategic importance of this acquisition in eliminating U.S. tariff risks during an online press conference.
By acquiring a local production hub, Celltrion has established 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 facility, including the acquisition cost, with an additional 700 billion won earmarked for future expansion.
The facility, located in New Jersey, is a large-scale, FDA-approved drug substance manufacturing site that adheres to current good manufacturing practice (cGMP) regulations. It has a history of producing treatments for cancer and autoimmune diseases, according to Celltrion.
U.S. President Donald Trump has indicated that tariffs on pharmaceuticals imported into the country could eventually reach up to 250 percent, the highest level he has threatened to date.