Celltrion to Acquire U.S. Biologics Site to Offset Future Trade Tariffs

COMPANY PROFILE
  • Celltrion has been designated the preferred bidder for a U.S.-based large-scale cGMP biologics plant owned by an undisclosed global pharmaceutical company.
  • The move is part of the company’s long-term strategy to mitigate potential U.S. pharmaceutical tariffs and strengthen local manufacturing capacity.

Celltrion has confirmed it is the preferred bidder for the acquisition of a biologics drug substance manufacturing plant in the United States. The announcement was made in a shareholder notice as part of the company’s broader strategy to respond to evolving U.S. pharmaceutical trade policies.

The South Korean biosimilars manufacturer described the move as a “fundamental solution” to fully mitigate future tariff-related risks. The targeted facility, whose seller remains undisclosed, is located in a key U.S. pharmaceutical cluster and has been producing biologics for oncology and autoimmune indications for several years.

While the company did not disclose financial details, local media have estimated the cost of acquisition and operation at approximately 700 billion won (US$503 million). Celltrion stated that the U.S. site’s production capacity would be up to 1.5 times larger than its Songdo Plant 2, which currently holds a 90,000L capacity.

Upon completion, the site is expected to manage the full drug production cycle — including drug substance and drug product manufacturing, packaging, and distribution — for the U.S. market. Around 50% of the site’s current capacity is tied to an exclusive contract manufacturing agreement to produce the seller’s biologics for five years. Celltrion expects the remaining capacity will be used to manufacture its own major products and generate revenue from day one.

As part of its long-term strategy, the company has also expanded its CDMO operations through its 2024-established subsidiary, Celltrion BioSolutions. This acquisition, if finalised in October as planned, would further strengthen Celltrion’s U.S. contract manufacturing footprint.

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