Celltrion has started operations at its Branchburg plant in the United States. The move is aimed at responding to potential changes in U.S. tariff policy.
Celltrion on the 25th disclosed the plant's operating status and future plans in a notice to shareholders. The market has raised the possibility of changes in the U.S. government's tariff policy, prompting concerns about rising export expense burdens for Korea's pharmaceutical and biotech industry.
According to the company, Celltrion completed inspections and preparations for operation by Jan. of this year for the plant acquired from Eli Lilly and Company late last year. Since Feb., it has been producing Eli Lilly and Company's contract manufacturing (CMO) volumes across all lines at the plant.
In parallel, it is carrying out validation (process verification) procedures for its own product manufacturing. Once the procedures are completed, products manufactured locally will be supplied to the U.S. market.
The tariff response is divided into short-term and mid-to-long-term measures. In the short term, it plans to continue sales by using two years' worth of volumes already brought into the United States. This means it will rely on existing inventory until locally produced products are shipped.
Over the mid to long term, the policy is to minimize the impact of changes in tariff policy by supplying products manufactured directly at the Branchburg plant.
The company said it has reviewed the U.S. Supreme Court's ruling invalidating the reciprocal tariff and the potential for future changes in the administration's tariff policy, and explained that it has established a risk management framework through the build-out of a local production base.