Celltrion Fully Launches U.S. Manufacturing Facility, Begins Production of Eli Lilly Products

Building Local Production and Direct Sales System in the U.S.
Securing Two Years of Supply to Mitigate Tariff Risks

Celltrion announced on February 26 that it has begun production of contract manufacturing organization (CMO) products at its plant in Branchburg, New Jersey, United States.

In a shareholder letter the previous day, Celltrion stated, "After successfully completing the acquisition of Eli Lilly's plant at the end of last year, we finished a full facility inspection and all preparations for full-scale operation last month," adding, "Starting this month, we have begun full-scale production of Eli Lilly CMO products across all lines." The company also added, "We have initiated the validation procedures for in-house product manufacturing."

View of Celltrion Plant 2 in Songdo, Incheon. Photo by Kim Hyunmin

Previously, Celltrion had announced that at the Branchburg manufacturing facility, whose acquisition was completed at the end of last year, it agreed to supply Eli Lilly with biopharmaceutical products worth approximately 678.7 billion won over three years through 2029.

Celltrion plans to establish a system that enables it to supply locally manufactured products to the U.S. market by linking local production with its own direct sales network.

Celltrion also explained that it has put in place a response system for U.S. tariff risks. Until the locally manufactured products are shipped, the company will continue sales using two years' worth of supply that has already been brought into the United States, and thereafter it plans to operate a production and sales system that is free from tariff impacts by supplying products directly from the Branchburg manufacturing facility.

A Celltrion official said, "Despite the U.S. Supreme Court's ruling invalidating reciprocal tariffs and the possibility of changes in tariff policy under a future Trump administration, we have completed a structural response system for tariff risks by establishing a local production and supply base," adding, "We will continue to closely monitor local market conditions going forward."