SEOUL, November 11 (AJP) - South Korean biopharmaceutical company Celltrion said on Tuesday that it had finalized the acquisition of Eli Lilly’s production facility in Branchburg, New Jersey.
The deal, which recently cleared all regulatory hurdles in the United States and Ireland, positions Celltrion to expand its presence in the world’s largest pharmaceutical market. The company said it expects to close the transaction by the end of the year.
Regulatory approval in the United States came through the Federal Trade Commission’s pre-merger notification process under the Hart-Scott-Rodino Act, which assesses potential impacts on competition. Ireland’s approval was granted on Oct. 31, given the company’s significant business operations there.
The Branchburg plant — covering about 148,800 square meters — will become Celltrion’s first major manufacturing site in the United States. The company plans to invest more than 700 billion won, or roughly $520 million, to expand the facility by an additional 36,400 square meters, ultimately bringing its capacity to about one and a half times that of Celltrion’s second plant in Songdo, South Korea.
“The completion of all merger reviews for the U.S. facility acquisition lays the groundwork for accelerating our global market expansion,” Celltrion said in a statement. “We aim to strengthen our production and supply competitiveness while creating value for shareholders.”
The company intends to use the Branchburg site as both a production hub and a platform for contract manufacturing. Celltrion expects the facility to generate revenue immediately after the deal closes, thanks to an existing supply agreement with Lilly. It also plans to pursue new manufacturing contracts, anticipating steady growth in demand for biologics and biosimilars.
The move could help Celltrion mitigate tariff risks, diversify its production bases and reduce its reliance on facilities in South Korea, where most of its biologic manufacturing is currently concentrated.
Founded in 2002, Celltrion has grown rapidly on the strength of its biosimilar portfolio — lower-cost versions of biologic drugs — and has sought to expand its presence in the U.S. and Europe. The acquisition of the Branchburg plant gives the company a stronger foothold in a market increasingly focused on securing local supply chains for critical pharmaceuticals, Celltrion officials said.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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