Celltrion shares jump on deal to acquire Eli Lilly and fend off US tariff risks

Celltrions plant Courtesy of Celltrion — Celltrion's plant/ Courtesy of Celltrion

SEOUL, September 23 (AJP) - South Korean biopharmaceutical company Celltrion's shares surged upon a major M&A deal in the United States, setting the contract-based drug maker better positioned against U.S. tariff exposure.

The company said on Tuesday its U.S. operation signed a deal to acquire Eli Lilly's biopharmaceutical manufacturing facility in Branchburg, New Jersey for about 460 billion won ($330 million), with an aim to close the deal by the end of the year.

Shares of Celltrion closed Tuesday 8.93 percent higher at 184,200 won.

The facility operates as a ready-to-use biopharmaceutical drug substance current good manufacturing practice production site, allowing immediate operations and significantly reducing the five-year timeline and trillion-won costs typically required for new plant construction. The deal includes full employment transfer of experienced local staff.

Celltrion also signed a contract manufacturing agreement with Lilly to supply drug substances from the facility, providing revenue growth and early investment recovery opportunities while establishing a complete local supply chain from production to sales in the U.S. market.

Kim Dong-young davekim0807@ajupress.com