Celltrion Inc. is negotiating to acquire Eli Lilly and Company’s manufacturing facility in Branchburg, New Jersey, for approximately 700 billion won ($504.3 million), according to people familiar with the discussions. The South Korean biosimilar developer aims to finalize the deal by October.
The acquisition would establish Celltrion’s first US production base, allowing the company to manufacture key products locally and circumvent potential import tariffs that could reach 250%. Celltrion plans to produce its autoimmune treatments Zymfentra and Yuflyma, along with cancer therapy Vegzelma, at the facility starting in the fourth quarter of next year.
The timing raises questions about due diligence. Eli Lilly’s 25,000-square-foot Branchburg plant has faced multiple FDA citations and a Justice Department investigation over quality control issues, including problems with process tracking, equipment calibration, and facility maintenance. The company recently settled a $22.5 million whistleblower lawsuit related to manufacturing problems at the site.
Lilly is divesting the facility as part of a broader strategy shift away from monoclonal antibodies toward more complex biologics. The deal includes a five-year contract manufacturing agreement, with Celltrion producing Lilly’s biologics alongside its own products.
Celltrion expects to invest an additional 300 billion to 700 billion won ($216-504 million) to expand production capacity, potentially bringing total investment to 1.4 trillion won ($1 billion). The company plans to increase its US market share from the current 30% following the acquisition.
