SEOUL, July 30 (AJP) - South Korean biopharmaceutical company Celltrion said Tuesday it will invest up to 1.4 trillion won to acquire and expand a US manufacturing facility as a preemptive response to potential drug tariffs threatened by the Trump administration. The company plans to complete the factory acquisition this year and begin local production of drugs sold in the US from the fourth quarter of 2026.
Celltrion announced it was selected as the preferred bidder for a US drug substance production facility owned by a global pharmaceutical company. The factory, located in a major pharmaceutical industry cluster, has been producing cancer and autoimmune disease treatments for several years. Contract details will be disclosed in October when the final agreement is signed.
Chairman Seo Jung-jin said the acquisition and operation of the production facility will require about 700 billion won, with additional expansion costing between 300 billion and 700 billion won. The expanded facility could reach up to 1.5 times the production capacity of Celltrion's Songdo plant in Incheon, which has a 90,000-liter capacity.
The acquisition includes a multi-billion won contract manufacturing agreement that will allow Celltrion to generate immediate revenue. Under the five-year deal, Celltrion will exclusively produce biopharmaceuticals for the selling company using half of the facility, while the other half will manufacture Celltrion's own products starting in the fourth quarter of 2026.
Celltrion currently sells 11 biosimilar products in the US market, with plans to expand to 41 products by 2033. Seo said the company had stockpiled two years' worth of inventory in the US to provide time for setting up local production, while non-US sales will continue to be manufactured in South Korea.
reporter
Candice Kim
candicekim1121@ajupress.com
Copyright ⓒ Aju Press All rights reserved.
View more comments