WMD
Columns
We summarize the background of Celltrion’s acquisition and its CMO operations.
Celltrion announced that on the 31st of last month it completed the transfer of a biopharmaceutical manufacturing facility in Branchburg, New Jersey, previously owned by Eli Lilly, and has begun contract manufacturing organization (CMO) operations worth approximately KRW 678.7 billion (USD 473 million) commissioned by Lilly.
The acquisition was finalized about five months after Celltrion was selected as the preferred bidder.
Background to the Acquisition
Compared with building a new plant, Celltrion acquired an already operational manufacturing facility that meets current Good Manufacturing Practice (cGMP) standards.
This approach was intended to shorten the time required to secure a global production base and to reduce related risks.
In addition, potential effects mentioned include mitigation of tariff-related risks, reduced geopolitical uncertainty through diversification of production sites, lower logistics costs, and a strengthened supply chain.
Start of KRW 678.7 Billion CMO Operations
Under an agreement with Eli Lilly, Celltrion plans to supply biopharmaceutical products worth approximately KRW 678.7 billion through 2029.
In parallel, validation and other commercialization procedures for Celltrion’s own products intended for sale in the U.S. market have also begun.
Through employment succession arrangements, experienced local personnel are expected to continue supporting production operations.
Capacity Expansion and CDMO Plans
The acquired U.S. manufacturing site is a large-scale campus covering approximately 149,000 square meters, comprising four buildings that include production facilities, warehouses, technical support buildings, and operational facilities.
The site currently has a production capacity of approximately 66,000 liters of drug substance. Celltrion plans to increase total capacity to around 132,000 liters through additional investment.
Through these efforts, the company aims to respond to growing demand for its products in global markets and plans to pursue contract development and manufacturing organization (CDMO) services for global pharmaceutical companies.
Under this structure, Celltrion and its U.S. subsidiary, Celltrion USA, will be responsible for facility investment and production infrastructure, while global sales and project management will be handled by its subsidiary, Celltrion Biosolutions.
Preparing for Global M&A
As seen in this case, cross-border M&A has increasingly taken diverse forms in line with corporate growth strategies.
WMD, an M&A advisory firm equipped with experienced professionals and AI-based matching capabilities, provides advisory services in response to the increasingly complex M&A environment.
The firm operates a network of more than 15 partner organizations across eight countries, including Japan, Singapore, the United States, and the United Kingdom.
WMD supports transactions ranging from overseas divestments by domestic companies to the entry of foreign investors into the Korean market, offering one-stop M&A advisory services encompassing legal, financial, and tax matters, led by management holding both Certified Public Accountant (CPA) and Attorney-at-Law qualifications.
*Click the image below to visit the consultation page.
