Focus on New Drug Development for Obesity Treatments and ADCs
Celltrion has unveiled its 'growth blueprint,' focusing on expanding its manufacturing facility in the United States, making new domestic investments, and developing new drugs such as antibody-drug conjugates (ADC) and obesity treatments.
1.4 Trillion Won Investment in U.S. Expansion... 4 Trillion Won Investment in Songdo, Yesan, and Other Korean Sites
Seo Jungjin, Chairman of Celltrion Group, announced at an online meeting on November 19 that the company plans to complete the acquisition of its Branchburg, New Jersey plant in the U.S. within this year and immediately begin the first and second phases of expansion. Celltrion intends to invest a total of 1.4 trillion won, including 700 billion won for the acquisition and an additional 700 billion won for expansion, to increase production capacity to up to 66,000 liters over five years. The company aims to establish a structure in which products for the U.S. market are manufactured locally, while products for global export are produced at domestic plants, thereby accelerating market expansion. Chairman Seo stated, "The U.S. CMO (contract manufacturing organization) business will automatically commence, and the CMO contract with Eli Lilly has already received approval from the U.S. government. By securing a U.S. plant, we have escaped the pressure of price reductions and tariff risks."
Seo Jungjin, Chairman of Celltrion, is speaking at the follow-up public-private joint meeting on Korea-US tariff negotiations held at the Yongsan Presidential Office on the 16th. Photo by Yonhap News
Domestic investment plans will also be significantly expanded. In addition to the ongoing drug product (DP) plant in Songdo, Celltrion will invest a total of 4 trillion won in new production facilities, including the Songdo drug substance (DS) plant, the Yesan drug product plant in South Chungcheong Province, and the Ochang pre-filled syringe (PFS) plant in North Chungcheong Province. By simultaneously investing in domestic and overseas production facilities, Celltrion plans to dramatically increase its annual supply capacity and strengthen its ability to respond to global markets for key products. With the expansion of both U.S. and domestic plants, the company expects to respond without supply disruptions to the anticipated launch of blockbuster biosimilars after 2030.
Celltrion has also presented a mid- to long-term goal of securing a portfolio of 41 biosimilars by 2038. By 2030, the company plans to commercialize a total of 18 products by launching seven additional new products, including biosimilars of Keytruda, Cosentyx, Ocrevus, and Darzalex. The existing portfolio, which has focused on autoimmune and oncology areas, will be expanded to include indications such as atopic dermatitis, asthma, and hemophilia.
Full-scale New Drug Development Focusing on ADCs and Obesity Treatments
The core of Celltrion's new drug development strategy is the ADC and multi-antibody platform, as well as an open innovation-based licensing-in approach. Celltrion expects to advance four ADC and multi-antibody candidates into clinical trials by 2025 and to have a total new drug pipeline of 20 candidates, including more than 10 at the clinical stage, by 2027. Obesity treatment is another next-generation growth driver for Celltrion. Beyond GLP-1 (glucagon-like peptide-1) based dual and triple agonists, which dominate the global market, the company is developing 'CT-G32,' a quadruple agonist obesity treatment. The goal is to improve on the variable efficacy and muscle loss side effects of existing drugs and achieve up to 25% weight reduction. Celltrion has already secured global leading candidates and is currently conducting animal efficacy evaluations, with plans to enter preclinical trials in 2026. This move is seen as an effort to secure a major domestic pipeline in the expanding obesity market.
A rebound in performance is also expected from the fourth quarter. With most one-off merger-related costs resolved and high-margin new products growing rapidly, sales are projected to increase by at least 30% compared to the third quarter, and the operating margin is expected to improve to around 40%. Newly launched denosumab and omalizumab biosimilars in the U.S. and Europe are showing rapid growth in prescriptions, and additional new products such as aflibercept will be introduced to the European market by the end of the year. Celltrion plans to further advance its business model by securing a stable cash flow base through its biosimilar business and linking this to investments in new drug development.
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