U.S. plant agreement looms for Celltrion, paving way for 'American-made' production
Celltrion Group, a South Korean biopharmaceutical company, is set to acquire a large-scale biologics manufacturing facility in the United States for approximately $500 million (700 billion won). The deal, which is expected to be finalized by early October 2025, involves a current Good Manufacturing Practice (cGMP) certified drug substance production site located in a major US pharmaceutical hub [1][2][3][4][5].
The plant, currently operating under existing contract manufacturing organization (CMO) agreements, will see about 50% of its capacity committed to Celltrion for its own biologics production [1][2]. This strategic move is designed to help Celltrion avoid tariff uncertainties and position itself advantageously as US drug prices are expected to rise [1].
This investment aligns with Celltrion’s broader US market strategy. Currently, the company sells 11 biosimilars in the US and plans to expand its portfolio to 22 by 2030 and 41 by 2033 [1]. The acquisition is expected to support long-term reduction of tariff-related costs and aim to boost additional profits via local production [2][3][4].
The initial investment may amount to up to 700 billion won, with possible added expenditure depending on expansion needs [2][4]. Celltrion is also considering follow-up investments based on US tariff policies.
In the second quarter, Celltrion posted record revenue and operating profit, with revenue rising 9.9 percent and operating profit jumping 234.5 percent year-over-year. The company is on track to deliver 4.5 to 4.6 trillion won in sales this year, with operating profit expected to reach about 1.5 trillion won [6][7].
The potential acquisition brings a team of development personnel to Celltrion, further strengthening its presence in the US market. The expanded facility, if built, would be up to 1.5 times the size of Celltrion's second plant in Songdo, Incheon [5].
Competition in the biologics manufacturing industry is expected to remain limited due to high capital requirements and long lead times for local production [8]. This acquisition presents an opportunity for Celltrion to significantly increase its production capacity and solidify its position in the US market.
References:
- Celltrion to Acquire U.S. Biologics Manufacturing Facility
- Celltrion to Invest in U.S. Biologics Manufacturing Facility
- Celltrion to Mitigate US Tariff Risks with US Biologics Facility Acquisition
- Celltrion to Spend Up to 700 Billion Won on US Biologics Facility
- Celltrion's US Biologics Facility Acquisition: What You Need to Know
- Celltrion Posts Record Revenue and Operating Profit in Q2
- Celltrion on Track for Record Sales and Profit in 2022
- Competition in the Biologics Manufacturing Industry
Technology will play a significant role in Celltrion's growth strategy, as the acquisition of a large-scale biologics manufacturing facility in the United States for approximately $500 million will incorporate advanced technology for drug substance production. This investment in technology is expected to support long-term reduction of tariff-related costs and aim to boost additional profits via local production.
