Celltrion Healthcare Acquires Celltrion USA for 18 Billion KRW... Launches Direct Sales in the US

CelltrionUSA Secures Distribution License for Held Pharmaceuticals

[Asia Economy Reporter Lee Gwan-joo] Celltrion Healthcare announced on the 5th that it has acquired its affiliate Celltrion's U.S. subsidiary (Celltrion USA) and is officially starting preparations for direct pharmaceutical sales in the United States.

This acquisition involves Celltrion Healthcare acquiring 100% of the shares of Celltrion USA, located in New Jersey, USA, at an acquisition price of approximately 18 billion KRW. Through this acquisition, Celltrion Healthcare will be able to immediately utilize the licenses held by Celltrion USA, shortening the preparation time for pharmaceutical distribution within the U.S. The licenses secured by Celltrion Healthcare include Celltrion USA's U.S. sales and distribution network, as well as distribution rights for Celltrion's chemical drugs and COVID-19 diagnostic kits.

Celltrion USA was established in July 2018 as a 100% subsidiary of Celltrion and has served as a foothold for Celltrion's global chemical business entry into the U.S. market. Celltrion USA has secured licenses to sell products nationwide in the U.S., the world's largest pharmaceutical and biotech market, and has built its own supply chain mainly focused on generic drug sales. In particular, during the COVID-19 pandemic, it secured large supply contracts for diagnostic kits in the U.S., accumulating experience in local direct sales operations.

Celltrion Healthcare plans to complete the corporate acquisition process soon and simultaneously finalize the hiring of key personnel with experience and expertise from global pharmaceutical companies in the U.S. With this acquisition, Celltrion will focus on research and product development, while Celltrion Healthcare will secure a foothold for direct sales in the U.S. following Europe, strengthening each company's core competencies and creating synergy to maximize the profits of the Celltrion Group.

Celltrion Healthcare plans to launch Vegzelma (generic name Bevacizumab, CT-P16), an anticancer antibody biosimilar for metastatic colorectal cancer and non-small cell lung cancer, in the U.S. in the first half of next year, and subsequently expand its product lineup with Uplyma (generic name Adalimumab) and Remsima SC (generic name Infliximab, subcutaneous injection formulation).

A Celltrion Healthcare official stated, “We will steadily proceed with preparations for direct sales in the U.S. by leveraging the experience and know-how accumulated from selling biopharmaceuticals in Europe, Asia, and other regions,” adding, “As the first domestic pharmaceutical biotech company to build capabilities by directly selling pharmaceuticals in the global market, we plan to actively utilize Celltrion Healthcare’s unique strengths such as global prescription data, highly reliable product competitiveness, and flexible pricing strategies to target the U.S. market. We expect the company’s business scale and capabilities to grow significantly starting next year, when product launches will be in full swing.”