Celltrion's headquarters in Incheon (Celltrion)
Celltrion's headquarters in Incheon (Celltrion)

Korean biosimilar giant Celltrion said Tuesday it has completed US merger review procedures for its acquisition of Eli Lilly’s biopharmaceutical manufacturing plant in Branchburg, New Jersey, clearing the way to close the deal within the year.

Earlier, Incheon-based Celltrion signed an agreement to buy the facility for $330 million on Sept. 20, alongside a contract manufacturing partnership with Eli Lilly.

The transaction has now passed review by both the US Federal Trade Commission’s Preliminary Notice Office under the Hart-Scott-Rodino Act and Ireland’s Competition and Consumer Protection Commission, the Korean firm said.

“Having completed all required regulatory procedures, Celltrion is now able to set a foothold to accelerate its global market penetration,” a company official said.

The reviews assessed whether the acquisition would restrict market competition, a key step before final closing. With regulatory approvals complete, Celltrion plans to dispatch integration teams and accelerate post-merger transition across production and management units.

Through the acquisition, Celltrion aims to expand its presence in the US biopharma market by mitigating potential risks from US tariff hikes and geopolitical uncertainties, while expanding its CMO business within the US.

By positioning the New Jersey plant as its US CMO hub, Celltrion aims to attract new clients and capitalize on growing domestic demand for biopharmaceutical production, leveraging its development and manufacturing expertise.

Under the existing CMO agreement with Eli Lilly, Celltrion expects to generate revenue immediately after the US acquisition and achieve an early recovery of its investment, it said.

Following the acquisition, the company plans to invest at least 700 billion won ($478 million) to expand the New Jersey plant, boosting its annual production capacity to about 50 percent more than its Songdo 2 plant in Incheon.


andreahaneu@heraldcorp.com