Biosimilar Producer Celltrion Invests $820 Million in New Plants, Expands US Manufacturing Amid Surging Biologics Demand
Celltrion, a leading biosimilar company, announced a significant investment of 1.23 trillion won ($820 million) on Tuesday to construct two new state-of-the-art manufacturing plants in Songdo, Incheon. This expansion will add 180,000 liters of capacity to their production capabilities, addressing the escalating global demand for biologics and biosimilars.
The Korean biopharmaceutical firm stated that the investment will be implemented in phases through 2030. This strategic move will support the production and global supply of its next-generation biosimilar pipeline, innovative drug candidates, and further expand its contract manufacturing organization (CMO) services.
In addition to the domestic expansion, Celltrion unveiled plans to increase the manufacturing capacity of its biopharmaceutical facility in Branchburg, New Jersey. The capacity will be upgraded to 75,000 liters, exceeding the initially planned 66,000 liters. This upgrade will boost the site’s total drug substance production capacity to 141,000 liters. Celltrion acquired the US facility from Eli Lilly for $330 million last year, marking a key step in its global expansion strategy.
Upon completion of these expansion projects, Celltrion’s total production capacity is projected to surge from 316,000 liters to an impressive 571,000 liters, solidifying its position as a major player in the biologics manufacturing landscape.
The company also highlighted that the construction of a new drug product manufacturing facility in Songdo is approximately 70 percent complete. This project is slated for completion within the year, adding an annual capacity of 6.5 million liquid vials. This expansion aligns with Celltrion’s objective to internalize up to 90 percent of its global drug product production needs, ensuring greater control over its supply chain.
“This strategic investment will empower Celltrion to respond rapidly to the burgeoning global demand for biologics, significantly enhance profitability through improved cost competitiveness, and ensure supply stability,” stated a Celltrion official.
“By establishing a comprehensive manufacturing infrastructure encompassing both innovative drugs and biosimilars as our two core growth pillars, coupled with our expanding CMO business, Celltrion is taking a significant stride towards becoming a global top-tier biopharmaceutical company.”
Furthermore, on Tuesday, Celltrion announced its plan to retire 9.11 million treasury shares, valued at approximately 1.7 trillion won as of April 1. This represents the company’s largest shareholder return initiative to date. The stock retirement encompasses around 74 percent of the company’s total treasury shares, or roughly 4 percent of the total shares issued.
Celltrion intends to utilize the remaining treasury stock to fuel future growth through strategic mergers and acquisitions, the development and introduction of new technologies, and further investments in infrastructure.
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