Celltrion Group announced that its US subsidiary, Celltrion USA, has entered into a definitive agreement to acquire Eli Lilly’s biologics manufacturing facility in Branchburg, New Jersey, for $330 million.

The site, originally built by ImClone Systems and acquired by Lilly in 2008, encompasses four buildings totalling 391,000 square feet across 37 acres. The acquisition represents a cornerstone in Celltrion’s global strategy to establish a strong manufacturing base in the United States, mitigating tariff risks and supporting the growing demand for biosimilars.

Strategic Response to Tariffs and Pricing Policies

The decision comes amidst ongoing uncertainty regarding US pharmaceutical tariffs and the federal government’s emphasis on fair drug pricing through its “Most-Favoured Nation” (MFN) policy. By securing local manufacturing capacity, Celltrion aims to reduce tariff exposure while supporting the accessibility of cost-effective biologics for US patients.

Mr. Seo Jung-jin, Chairman of Celltrion Group, said:

“This acquisition provides a fundamental solution to the challenges of tariffs and pricing pressures. By investing directly in US-based manufacturing, we are demonstrating our commitment to American patients, regulators, and partners. It is not only a strategic hedge but also a long-term growth platform.”

Partnership and Facility Outlook

Under the terms of the agreement, the Branchburg plant will operate with a shared capacity model:

• 50% of production lines will continue to manufacture Lilly products under a contract manufacturing arrangement.

• 50% of capacity will be dedicated to Celltrion’s biosimilar and biologics portfolio, including therapies for autoimmune diseases and cancers.

Celltrion anticipates receiving US regulatory approval for the site in 2025, with production of both Celltrion and Lilly products expected to commence by late 2026.

$1 Billion Long-Term Investment

The Branchburg deal forms part of Celltrion’s broader $1 billion US investment programme, covering operational costs, facility upgrades, and future expansion. This aligns with the company’s three-tier US market strategy:

1. Short-term – Stockpiling two years of inventory in the United States.

2. Mid-term – Expanding contracts with local CMOs to strengthen supply resilience.

3. Long-term – Establishing wholly owned large-scale manufacturing within the US.

Fast Facts

• Transaction value: $330 million

• Location: Branchburg, NJ (391,000 sq. ft., 37 acres)

• Partnership split: 50% Lilly products / 50% Celltrion products

• Investment commitment: $1 billion (operations, upgrades, growth)

• Timeline: Regulatory approval in 2025; production by late 2026