Celltrion

Dear Shareholders,

On July 29, we informed you that we had been selected as the preferred bidder for the acquisition of a biologics manufacturing facility in the United States. As of September 20 (local time), we have successfully signed an agreement with Eli Lilly to acquire this facility. We are pleased to share the details with you promptly, as outlined below.

1. Overview of the Acquisition

• Facility to be Acquired: A biopharmaceutical drug substance (DS) plant in Branchburg, New Jersey, owned by global pharmaceutical leader Eli Lilly. The site covers approximately 37 acres, including four buildings (with 10 acres of vacant land available for future use)
• Acquisition Value: Approximately KRW 460 billion (about KRW 700 billion including operational funds)
• Acquiring Entity: Celltrion U.S. subsidiary (chosen for operational efficiency and legal stability)

2. Completion of Comprehensive U.S. Tariff Response Plan

• Recently Celltrion has proactively addressed tariff-related risks by transferring two years’ worth of inventory to the U.S. and expanding contracts with local CMO partners, implementing stage-specific measures to mitigate exposure
• Following validation of the newly acquired facility (estimated 12–18 months), Celltrion products will be manufactured and supplied directly from this site
• With this acquisition, Celltrion has fundamentally and fully eliminated all potential future tariff risks related to its products in the U.S. market

3. Additional Benefits of the Acquisition

• Immediate Utilization: By acquiring an existing facility rather than constructing a new one, Celltrion achieves significant cost savings and can commence operations immediately. Full employee retention ensures continuity of production and access to skilled expertise, while ongoing CMO contracts provide immediate revenue streams and accelerate recovery of invested capital

• Reduction in External CMO and Logistics Costs: The facility enables full-cycle integration — from drug substance production through finished product manufacturing, packaging, logistics, and sales — within the U.S., thereby strengthening operational capacity. Localized production will also reduce logistics costs previously incurred for U.S.-bound shipments, as well as lower external CMO-related expenses

4. Next Steps

• Preparations are underway to transfer operations and complete closing procedures by year-end
• During this period, Celltrion will proceed with required regulatory approvals, including U.S. merger control filings, and expects to finalize the transaction by the end of this year

As the acquisition process moves forward, we remain committed to keeping our shareholders fully informed of any updates in a timely manner, ensuring continued trust and support for Celltrion. 

Thank you.