pharm edaily

[Song Young Doo, Edaily Reporter] Celltrion is moving to secure a pharmaceutical manufacturing base in the United States, the world’s largest drug market. The move is expected to completely resolve what is currently considered one of the biggest risks in the pharmaceutical industry U.S. tariffs while enabling immediate revenue generation upon acquisition through the expansion of a global manufacturing network. This is anticipated to fuel rapid growth.

After finalizing the main contract and other necessary procedures, Celltrion plans to fully operate the plant and actively pursue additional expansions, establishing a forward base for penetrating the U.S. market. By turning the challenge of potential U.S. tariffs into an opportunity, the company aims to secure an optimal facility that offers both economic and business advantages, paving the way for a full-fledged “Big Pharma” era.

An exterior view of Celltrion’s Plant 2.(Photo courtesy of Celltrion)

Competitive Edge Over Global Rivals A Strong Position in the U.S. Market

Celltrion’s planned acquisition of a U.S.-based manufacturing facility from a global pharmaceutical company, disclosed last month, is reportedly progressing smoothly. According to the agreement with the counterparty, the main contract is scheduled to be signed in early October this year.

As the Trump administration’s aggressive tariff policies prompt global big pharmas to race to secure U.S.-based production sites, Celltrion emerged as the preferred bidder beating out two global competitors?demonstrating its brand power and competitiveness in biopharmaceuticals on the global stage.

The target facility is known to have produced biologics such as anticancer drugs and autoimmune disease treatments for several years. Given that Celltrion has already secured U.S. approvals for multiple anticancer products(Truxima, Herzuma, Vegzelma) and autoimmune disease treatments(Remsima, Zymfentra, Yuflyma, Steqima, Avtozma), the company is well-positioned to quickly ramp up operations at the site.

Producing its own products at the facility would not only eliminate tariff issues but also improve cost efficiency through direct manufacturing and reduced logistics expenses. Enhanced cost competitiveness would allow more aggressive marketing, likely leading to expanded U.S. market share. Moreover, Celltrion would gain the rights to exclusively manufacture the acquired company’s biologics for an extended period, enabling immediate revenue generation post-acquisition.

Beyond the acquisition, Celltrion plans to promptly begin expansions based on U.S. sales trends and the launch schedule of new products boosting production capacity to about 1.5 times that of its Incheon Songdo Plant 2(approximately 90,000 liters). Through sustained investment, the company aims to establish a U.S. ecosystem spanning R&D, production, and sales. By adding a top-tier production facility to its existing U.S. distribution network, Celltrion is effectively “adding wings to a tiger,” dramatically strengthening its competitiveness.

Analysts: “Proactive Move Eliminates Tariff Risk, Creates Structural Advantage”

Analysts believe the acquisition will completely remove tariff risks and enhance Celltrion’s competitiveness in the U.S. market.

Lee Ji-won, an analyst at Heungkuk Securities, said, “With President Trump’s tariff policy expected to materialize soon, Celltrion’s tariff response strategy is more proactive and aggressive than any other company’s. The acquisition will eliminate tariff risks in the short term while securing valid U.S. capacity and strengthening sales capabilities over the long term a positive momentum.”

Seo Geun-hee, an analyst at Samsung Securities, added, “Half of the facility will be used to exclusively produce the acquired company’s biologics for five years, contributing to profitability immediately after the acquisition. The remainder will be used to produce Celltrion products, with integration from DS(drug substance) to DP(drug product) expected to improve cost efficiency.”

Kim Min-jung, an analyst at DS Investment & Securities, noted, “The plant provides an immediate revenue source, ensures flexible response to future U.S. tariff policies, and addresses the shortage of production capacity all positive developments.”

Numerous other brokerages have released reports praising Celltrion’s move to secure a U.S. production base, both eliminating tariff risks and ensuring immediate cash flow. The company plans to execute its U.S. market strategy without a hitch, delivering on these high expectations.

A Celltrion official stated, “Once we finalize the acquisition, we will completely resolve the U.S. tariff risk and expect a quantum leap in sales in the world’s largest market. We will do our utmost to use this as a springboard to become a true global Big Pharma.”