Celltrion’s (OTCPK:CONI.F) U.S. subsidiary acquired Imclone Systems, a facility located in Branchburg, New Jersey, from Eli Lilly (NYSE:LLY) for $330M, according to a recent regulatory filing in South Korea.
The move is part of a strategic move to protect Celltrion’s existing and future product offerings in the U.S. market from potential U.S. tariff risks by strengthening its manufacturing and supply chain presence within the country.
The purchase covers the New Jersey plant itself, with Celltrion (OTCPK:CONI.F) indicating total initial investment, including operational costs, will be around $500M, and long-term expansion at the site could push total expenditure to at least $1B.
The acquisition is expected to be completed by year-end.
“The 1.4 trillion won investment (in the US plant) makes more economic sense than building a new plant in Korea,” Celltrion Group Chair and founder Seo Jung-jin commented.
