Celltrion has achieved a significant milestone in its effort to establish a biopharmaceutical production foothold in the United States. On July 29, the company announced that it was selected as the preferred bidder over two global competitors to acquire a large-scale Drug Substance (DS) manufacturing facility in the US.
The acquisition target is an advanced cGMP manufacturing site located within one of the major pharmaceutical industry clusters in the US. This facility has a history of producing treatments for cancer and autoimmune diseases. Celltrion is currently conducting due diligence with plans to finalize the acquisition contract by early October.
In May, as part of its tariff response strategy, Celltrion began transferring two years' worth of product inventory to the US and expanding local contract manufacturing organization (CMO) agreements. This facility acquisition is the culmination of that strategy, allowing Celltrion to eliminate tariff burdens by manufacturing its key products directly in the US.
Approximately half of the facility's capacity is already secured under a CMO contract for the acquired company's products over the next five years, ensuring immediate stable revenue upon acquisition. The remaining capacity will be allocated for producing Celltrion’s products sold in the US. Additionally, plans for capacity expansion will be pursued immediately, with the expected production scale reaching approximately 1.5 times that of Celltrion's Songdo Plant 2 in Incheon upon completion.
Furthermore, Celltrion aims to establish an integrated production system at the facility that handles not only Drug Substances (DS) but also Drug Products (DP), packaging, and logistics. This integration is anticipated to significantly reduce costs and enhance competitiveness in the US market.
By acquiring an existing facility, Celltrion has significantly reduced the time and costs associated with building a new facility. This acquisition lays the groundwork for a rapid completion of an optimal bioecosystem that encompasses R&D, production, and sales within the United States.
A Celltrion spokesperson stated, “This acquisition will be a turning point in solidifying our presence in the US market. We will focus our efforts on eliminating tariff risks and expanding market share for our major products in the US to enable a leap forward in the global market.”
