Celltrion announced on the 2nd that it has completed the transfer and related procedures (deal closing) for the biopharmaceutical production facility in Branchburg, New Jersey, United States, acquired from Eli Lilly. In parallel, it will also begin in earnest the contract manufacturing (CMO) of pharmaceuticals worth a total of USD 473 million (about KRW 678.7 billion) contracted with Eli Lilly.

Procedures were finalized roughly five months after Celltrion was selected as the preferred bidder for the plant acquisition at the end of July last year. Based on swift execution by management, the company concluded the final contract in September 2025 and completed merger review by competition authorities in Ireland and the United States in October and November.

Celltrion determined that acquiring an existing facility would be more efficient than constructing a new plant, which requires significant capital and time. In particular, the facility is already in operation and compliant with current Good Manufacturing Practice (cGMP). The assessment is that the company has shortened the time needed to secure a global production base while minimizing related risks.

Through this acquisition, Celltrion has also been able to structurally escape tariff risks. It can expect to mitigate geopolitical uncertainties by diversifying production bases. From cost improvements through in-house manufacturing to reductions in logistics and other expenses via direct local sales, the company will be able to further strengthen its overall supply chain. Ultimately, profitability is expected to improve, and Celltrion’s influence in the United States, the world’s largest pharmaceutical market, is projected to expand rapidly.

The CMO contract concluded alongside the plant acquisition is also drawing attention. Celltrion has signed a biopharmaceutical supply contract with Eli Lilly worth about KRW 679.7 billion. The contract period runs until 2029, effectively securing roughly three years of revenue. Reflecting potential contingencies, the actual contract period is said to total four years.

Excluding facility operating costs and other expenses, the investment Celltrion has made in acquiring the plant is known to be USD 330 million (about KRW 476.5 billion. On a simple calculation, the company is expected to recoup its plant acquisition investment in approximately two to three years through this single CMO contract with Eli Lilly. Celltrion stated that it has also begun commercialization procedures such as validation for its own products to be sold in the U.S. market, and plans to operate the plant so that revenue generation and production continue without interruption at the U.S. manufacturing site. It has also reached agreement on the succession of existing employees, thereby securing continuity and expertise in production through the work of experienced local personnel.

The Eli Lilly plant acquired by Celltrion is a large-scale campus consisting of four buildings—including production facilities, a logistics warehouse, a technical support building, and an operations building—on a site of approximately 148,500 square meters. It is said to be capable of producing drug substance (DS) on a scale of about 66,000 liters. Celltrion plans to invest around KRW 700 billion in expanding the plant, with the aim of increasing total production capacity to 132,000 liters.

A Celltrion official stated, “The company plans to proactively respond to growing product demand in the United States and other global markets and to actively expand contract development and manufacturing (CDMO) services for global pharmaceutical companies.” With respect to plant operations, Celltrion and its U.S. subsidiary Celltrion USA will be responsible for building production infrastructure, including facility investment. Celltrion’s subsidiary Celltrion BioSolutions will handle global sales and project management. Under its policy of positioning the CDMO business as a future growth driver, Celltrion intends to respond flexibly to changes in external conditions such as U.S. tariff policy and to strengthen its responsiveness to global clients.

Having secured a production facility in the United States and thereby resolved part of its uncertainty, Celltrion is forecasting record-high results for 2025. In a disclosure on the 31st of last month, the company projected consolidated results for the fourth quarter of 2025 at KRW 1.2839 trillion in revenue and KRW 472.2 billion in operating profit. These figures represent increases of 20.7% and 140.4%, respectively, year-on-year, indicating expectations of a significant improvement in profitability. If the projections are confirmed, full-year results for last year are expected to be tallied at KRW 4.1163 trillion in revenue, up 15.7%, and KRW 1.1655 trillion in operating profit, up 136.9%. From this year, revenue from CMO activities at the U.S. production base and various cost savings are also expected to be reflected in the company’s performance.

A Celltrion official commented, “With the recent passage of the U.S. biosecurity law, local CMO demand from global biotechnology companies is expected to increase sharply, and through this acquisition of a local production facility Celltrion will be able to respond to market changes proactively and aggressively,” adding, “As a CMO contract was concluded immediately following the acquisition, it is expected to contribute meaningfully to our results.” The official continued, “We will also move ahead in earnest with expansion procedures to boost production capacity and pursue a leap forward to become a global big pharma, including our new CDMO business.”

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