Biosimilar producer adds 180,000-liter capacity, expands US site amid rising biologics demand
Celltrion said Tuesday it will invest 1.23 trillion won ($820 million) to build two new plants in Songdo, Incheon, bolstering its capacity by 180,000 liters amid the increasing global demand.
According to the Korean biosimilar producer, the investment will be carried out in phases through 2030 to support the company’s production and supply of next-generation biosimilar and drug candidates while expanding its contract manufacturing organization, or CMO, business worldwide.
Celltrion also announced its decision to expand the manufacturing capacity of its biopharmaceutical facility in Branchburg, New Jersey, to 75,000 liters from the initial 66,000 liters planned. The upgrade will bring the site’s total drug substance production capacity to 141,000 liters. Celltrion acquired the US site from Eli Lilly at $330 million last year.
Upon the completion of both expansion projects, Celltrion's total production capacity is projected to increase from 316,000 liters to 571,000 liters.
The company noted that the construction of a new drug product manufacturing facility in Songdo is about 70 percent complete. The project will likely reach completion within this year, adding an annual capacity of 6.5 million liquid vials as the company aims to internalize up to 90 percent of its global drug product production needs
“This investment will enable the company to respond swiftly to rapidly growing global demand for biologics while significantly improving profitability through strengthened cost competitiveness and supply stability,” a Celltrion official said.
“By establishing a comprehensive manufacturing infrastructure encompassing both innovative drugs and biosimilars as two key growth pillars, along with our expanding CMO business, Celltrion will take another step forward toward becoming a global top-tier biopharmaceutical company.”
Also on Tuesday, Celltrion announced its plan to retire 9.11 million treasury shares worth about 1.7 trillion won as of April 1 to mark its largest-ever shareholder return initiative. The size of the stock retirement accounts for about 74 percent of the company's total treasury shares, or around 4 percent of the total shares issued.
Celltrion said it will use the remaining treasury stock to secure future growth engines through mergers and acquisitions, new technology development and introduction, and facility investment.
By Kan Hyeong-woo (hwkan@heraldcorp.com)
