Celltrion completes acquisition of Lilly’s U.S. plant, launches $470m CMO business

[Song Young Doo, Edaily Reporter] Celltrion said on Thursday it has completed the transfer of ownership for a biologics manufacturing facility in Branchburg, New Jersey, previously owned by Eli Lilly and Company, marking the final closing of the deal. With the acquisition finalized, Celltrion will formally begin contract manufacturing organization(CMO) operations for Lilly, valued at approximately 678.7 billion Won($473 million).

The deal closing comes about five months after Celltrion was named preferred bidder in late July. The company attributed the rapid completion to strategic decision-making by management and swift execution, including signing the definitive agreement in September and completing merger reviews in Ireland and the United States in October and November.

By acquiring an already operational facility that meets current Good Manufacturing Practice (cGMP) standards, rather than building a new plant from scratch, Celltrion significantly shortened the timeline for securing a global production base while minimizing investment risk.

The acquisition is expected to deliver multiple strategic benefits, including a structural reduction in tariff-related risks and mitigation of geopolitical uncertainty through diversification of production sites. Celltrion also anticipates improvements in cost structure through in-house manufacturing, reduced logistics costs by enabling local production and sales, and strengthened supply chain resilience, all of which are expected to enhance profitability, efficiency and stability. The company plans to rapidly expand its presence in the U.S., the world’s largest pharmaceutical market.

Under the agreement with Lilly, Celltrion will supply biologic drugs worth approximately 678.7 billion Won over three years through 2029. To account for contingencies, the contract term was set at four years. Excluding facility operating costs, the company expects to recover more than its initial acquisition investment of $330 million solely through CMO revenue within a few years.

At the same time, Celltrion has begun commercialization procedures, including validation of its own products to be sold in the U.S. market. As a result, the U.S. facility is expected to generate revenue and maintain production with virtually no downtime. In addition, employment succession arrangements will allow experienced local personnel to continue operations immediately, ensuring continuity and technical expertise.

The acquired facility is a large-scale campus spanning approximately 45,000 pyeong(about 149,000 square meters) and consists of four buildings, including manufacturing, logistics warehouse, technical support and operations buildings. It has an annual drug substance(DS) production capacity of about 66,000 liters. Beyond the acquisition, Celltrion plans to immediately begin expansion, investing an additional 700 billion Won to double total capacity to 132,000 liters.

Through this expansion, Celltrion aims to proactively respond to growing global demand for its products, including in the U.S., while actively pursuing contract development and manufacturing organization(CDMO) services for global pharmaceutical companies.

Under the operating structure, Celltrion and its U.S. subsidiary, Celltrion USA, will oversee facility investment and production infrastructure, while another subsidiary, Celltrion BioSolutions, will handle global sales and project management. Positioning CDMO as a future growth engine, Celltrion said it will flexibly respond to changes in the external environment, including U.S. tariff policies, while strengthening its ability to serve global clients.

“Following the recent passage of the U.S. Biosecure Act, demand for local CMO services among global biotech companies is expected to rise sharply,” a Celltrion official said. “Through this U.S. facility acquisition, we are now in a much stronger position to respond proactively and aggressively to these market changes. With the immediate CMO contract with Lilly, the U.S. plant is expected to post meaningful revenue this year.”

The official added, “We will move forward with capacity expansion to significantly strengthen our production capabilities and accelerate our new CDMO business, making every effort to grow into a global big pharma company.”

송영두 (songzio@edaily.co.kr)