Seoul: Celltrion Inc., a leading biopharmaceutical company based in South Korea, has announced a significant achievement by securing a 294.9 billion-won (US$198 million) contract to supply drug substances to an undisclosed global pharmaceutical firm, with the agreement extending through 2029.

According to Yonhap News Agency, the contract's value has the potential to increase to 375.4 billion won, contingent upon a mutual agreement between the involved parties. Despite the substantial nature of the deal, Celltrion has opted not to reveal the name of the customer due to confidentiality clauses.

Celltrion's contract manufacturing organization (CMO) has seen substantial growth following their strategic decision last year to bolster this segment. The biopharmaceutical giant had earlier entered into a lucrative 678.7 billion-won CMO agreement with Eli Lilly and Company, elevating its cumulative CMO order backlog to surpass the 1 trillion won mark within the first quarter of the year.

In January, Celltrion expanded its operations by acquiring a 460 billion-won manufacturing facility located in New Jersey through its subsidiary, Celltrion USA Inc. This acquisition aligns with the rising demand for contract development and manufacturing organization (CDMO) partnerships from major pharmaceutical companies worldwide.

Celltrion is actively exploring options to increase its production capacity to meet both the growing demands of its CDMO business and its own product requirements. The company currently boasts a total manufacturing capacity of 316,000 liters, split between its three domestic plants in Songdo, west of Seoul, and its facility in New Jersey.

A Celltrion representative highlighted the company's proactive strategy: "Considering the need to expand manufacturing for our own products, along with growth in the CDMO business and rising global demand, we plan to actively pursue additional manufacturing capacity to support future growth."

In addition to its manufacturing endeavors, Celltrion has been broadening its global biosimilar portfolio. The company has increased its approved products from six to 11, with an ambitious goal to commercialize 18 biosimilars by 2030 and 41 by 2038.

Celltrion's original drug, Zymfentra, is currently available in the United States for treating autoimmune diseases and is marketed under the name Remsima SC in Europe and other regions.