Seoul: Celltrion Inc., a leading biopharmaceutical company in South Korea, has announced plans to invest 4 trillion won (US$2.7 billion) to expand its domestic facilities. The investment comes in response to rising global demand for its products.

According to Yonhap News Agency, this significant investment follows Celltrion's recent agreement to acquire a U.S. production plant from Eli Lilly for 460 billion won. The acquisition is expected to be finalized within the year. Celltrion's strategy involves balancing investments between domestic and overseas markets. While the U.S. plant will address local demand, domestic facilities will focus on handling export volumes for non-U.S. markets, as stated in a company press release.

The company did not specify a timeframe for the domestic investment plan. However, it emphasized that the acquisition of the U.S. plant would help mitigate tariff risks. This move complements earlier measures, including shipping two years' worth of inventory to the United States in advance and expanding local contract manufacturing organization (CMO) partnerships.

With the new facility, Celltrion has established a comprehensive supply chain in the U.S., covering the entire drug manufacturing process from production to commercialization. The company plans to allocate 700 billion won for the U.S. plant, including acquisition costs, and another 700 billion won for its expansion.

Celltrion has been rapidly expanding its global biosimilar portfolio, increasing its number of approved products from six to 11. The company aims to commercialize 18 biosimilars by 2030 and 41 by 2038. Its only original drug, Zymfentra, is currently available in the United States for autoimmune diseases and is marketed as the biosimilar Remsima SC in Europe and other regions.

Based on its expanding portfolio, Celltrion anticipates more than 30 percent quarter-on-quarter sales growth in the fourth quarter, having posted 1.03 trillion won in sales in the third quarter.