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Celltrion seeks to acquire major biopharmaceutical plant in U.S. by October as Trump tariff hedge

Published: 29 Jul. 2025, 15:18 Updated: 29 Jul. 2025, 17:01

LEE JAE-LIM
[email protected]

Celltrion headquarters in Songdo, Incheon, in 2023 [CELLTRION]

Celltrion aims to acquire a major biopharmaceutical manufacturing facility in the United States for 700 billion won ($503.2 million) by October, as part of its strategy to mitigate potential U.S. tariffs that could reach as high as 200 percent, with the deadline approaching on Aug. 1.

Celltrion revealed on Tuesday via electronic disclosure that it has been selected as the preferred bidder to acquire a U.S. production plant, outbidding two other competitors. The facility under discussion is a large-scale facility located within one of the major pharmaceutical clusters in the United States, producing anticancer drugs and treatments for autoimmune diseases.

The name of the company and the facility will remain confidential until a definitive agreement is signed, likely in early October.

The company could invest an additional 300 to 700 billion won to expand the facility, depending on the tariff rates.

“I’d like to announce today that Celltrion has nearly completed hedging against tariff risks,” Celltrion founder and Chairman Seo Jung-jin said at an online briefing. “Only the final procedures remain. I believe that many other Korean companies are now at a similar stage. I hope our company’s efforts can serve as a positive example, showing that U.S. tariffs do not have to significantly impact the domestic economy.”

Celltrion Chairman Seo Jung-jin speaks at an online press briefing on July 29. [SCREEN CAPTURE]

After the acquisition, Celltrion would take over the facility's operation immediately. Seo forecasts that Celltrion products will be produced at the plant by the fourth quarter of next year.

“We’re now ready to sell Celltrion products as ‘Made in the USA’ through this acquisition,” he said. “We’ve also secured a two-year inventory to buy time during the transition.”

Seo expects a swift return on the acquisition, noting that 50 percent of the facility will be dedicated to exclusively manufacturing biopharmaceuticals for the seller under a five-year contract manufacturing agreement. The remaining half will be used to produce Celltrion’s own products for the U.S. market.

Following the deal’s closure, Celltrion plans to immediately begin expanding the facility. Once completed, the site’s production capacity is projected to reach 1.5 times that of Celltrion’s 90,000-liter Plant 2 in Songdo, Incheon.

Celltrion has set its annual revenue target at between 4.5 trillion and 4.6 trillion won, with an operating profit of 1.5 trillion won for this year.

The company currently markets 11 biosimilars in the United States, a figure it aims to increase to 22 by 2030 and 41 by 2033.

BY LEE JAE-LIM [[email protected]]