Listen to this articleThe basics:
- Celltrion acquires Eli Lilly‘s 37-acre Branchburg facility for $330M
- Purchase eliminates US tariff risks, reduces shipping costs
- Facility supports full-cycle drug manufacturing and packaging
- Biosimilar production expected to start in 2027, after validation
Celltrion Inc. has its U.S. base in Jersey City, but will expand its in-state presence following the acquisition of an Eli Lilly & Co. plant in Somerset County.
On Tuesday, the Korean-based global biopharmaceutical company announced signing a Sept. 20 agreement to acquire the approximately 37-acre site. The biosimilar maker pegged purchase price at $328 million for 33 Imclone Drive in Branchburg.
The move comes in response to U.S. tariffs rolled out by the Trump administration. It also follows other initiatives from the company to “proactively address tariff-related risks.”
Celltrion noted moving two years’ worth of inventory to the U.S. and expanding contracts with local contract manufacturing organizations to preempt the levies.
Eli Lilly confirmed its intent to offload the property in August. Celltrion said the site includes four buildings, with 10 acres of vacant land available for future use.
After an estimated 12–18 month validation period, the biophama says it will manufacture and supply products directly from Somerset County.
“With this acquisition, Celltrion has fundamentally and fully eliminated all potential future tariff risks related to its products in the U.S. market,” the company wrote in a letter to shareholders.
Ready to go
Since Celltrion will take over an existing facility, the company will achieve “significant cost savings.” It will also provide a turnkey experience, with operation set to begin “immediately.”
That’s bolstered by the fact that it appears Celltrion will retain the Eli Lilly employees already working at the property. This “ensures continuity of production and access to skilled expertise, while ongoing CMO contracts provide immediate revenue streams and accelerate recovery of invested capital.”
In reporting Eil Lilly’s plans to offload the site last month, NJ.com noted the pharma intended to sell the property, as well as find buyers who would maintain its current staffing levels.
Additionally, the facility enables full-cycle integration in the U.S. – “from drug substance production through finished product manufacturing, packaging, logistics and sale” – to bolster operational capacity, the incoming owner said.
The company gains a logistical advantage, too, by keep production local and eliminating previous costs from shipping product to the U.S. Lower external CMO-related expenses also create savings, the company said.
“With this U.S. plant acquisition, we have saved about 1.5 trillion won [$1.06 billion] by eliminating tariff risks, avoiding the cost of building a new facility, securing production capacity and retaining skilled talent,” The Korea Economic Daily quoted Celltrion Chairman Jungjin Seo as telling reporters during a company news conference Tuesday.
That publication noted the plant currently produces biologic medicines – and, under the agreement, will continue to do so for five years while also manufacturing Celltrion’s biosimilars.
With closing expected by the end of 2025, the company says it is making moves to transfer operations to the site.
Celltrion did not immediately return a request for comment.
Hot spot
In Central Jersey’s Somerset County, Celltrion joins several other companies operating in the life sciences space. Earlier this month, Aucta Pharmaceuticals opened its new Basking Ridge base. And Cellares continues to share news out of its Bridgewater location.
“Celltrion’s investment in Branchburg is a testament to the strength of Somerset County’s biomanufacturing industry,” Somerset County Commissioner Director Shanel Robinson told NJBIZ in a statement. “New Jersey’s life sciences manufacturing workforce ranks No. 2 in the nation. Here in Somerset County, we have the skilled workers Celltrion will need to expand and grow its business.
“We exceed the national average for chemical and industrial engineers and biological technicians. And our county college, Raritan Valley, has been designated a Center for Workforce Innovation in Aseptic Processing and Biomanufacturing.”
In fact, Raritan Valley Community College recently celebrated the expansion of its leading Workforce Training Center. The site supports the first clean room at a community college in New Jersey.
Editor’s note: Exchange rate as of Sept. 25, 2025.
