Celltrion

On the 5th of this month (local time), U.S. President Donald Trump stated that a new announcement regarding itemized tariffs on pharmaceuticals will be made within the next two weeks. Following this statement, we have received inquiries from some of our shareholders.

On February 19, we issued an announcement titled [UPDATE – Company’s Position and Response Strategy Regarding the U.S. Trump Administration’s Tariff Policy(2)], which outlined our response strategies under consideration. 

In line with the recent announcement, we would like to provide an update to our shareholders on the additional measures being incorporated into our response strategy, as follows:

■ Celltrion’s Response Strategy and Current Progress

• As part of our immediate response, we have completed the transfer of inventory equivalent to approximately 15 months' supply of our products scheduled for sale in the U.S. in 2025. This allows us to minimize the impact of potential tariffs not only on this year’s U.S. sales but also for sales planned through the first half of next year.

• As a mid-term strategy, we have finalized manufacturing agreements with a U.S.-based Contract Manufacturing Organization (CMO) for the local production of finished Drug Products (DP). Accordingly, we have already secured production volumes within the U.S., and we have also completed necessary arrangements to expand contracts in coordination with the manufacturing site, should additional volumes be needed due to tariff-related changes.

• While we are already equipped with measures to minimize tariff impact beyond this year, we are also actively pursuing a more fundamental, long-term solution by securing local API (Active Pharmaceutical Ingredient) manufacturing facilities in the U.S. A preliminary review has been completed, and we are currently conducting a detailed review covering all aspects to implement a sustainable risk management framework. We are committed to establishing a fundamental and lasting strategy in a timely manner.

We are thoroughly preparing for potential changes to pharmaceutical tariffs under the Trump administration through proactive and comprehensive planning. Once the U.S. government finalizes its pharmaceutical tariff policies, we will promptly share our company’s comprehensive response measures with our shareholders to maintain your trust and continued support.

Thank you.