Celltrion Pharm Inc.

South Korean biopharma contract manufacturer Celltrion is considering acquiring US manufacturing sites to mitigate President Donald Trump’s potential tariffs on foreign-made pharmaceuticals. Trump is considering a variety of global tariffs to reduce US reliance on foreign manufacturing, including a 25% tariff on Canada and Mexico and 10% on China, which could affect non-US pharmaceutical companies and manufacturers. Incheon-headquartered Celltrion already has short- and long-term strategies in place in case the drug tariffs get implemented, the company said in a statement to shareholders on Thursday. Celltrion has six FDA-approved biosimilar products available in the US, as well as its subcutaneous infliximab injection Zymfentra, which is used to treat inflammatory bowel disease. It has three plants in South Korea, which are all certified by the FDA. The company also has a contract manufacturing arm , dubbed Celltrion Pharm, with a small molecule site in Cheongju, which ships products to the US, and an oral solid dosage factory located in Jincheon for domestic supply. Now, Celltrion is looking to buy facilities in the US to manufacture drug substances and drug products as a means to avoid Trump’s tariffs. Further, the company said it is also looking into collaborating with local manufacturers. As well as growing its US footprint, Celltrion is considering exporting drug substances, which will have lower tariffs, instead of finished products into the US. In the meantime, Celltrion said it has enough finished drug product inventory to supply the US until the third quarter of 2025. And, it has a good supply of active pharmaceutical ingredients already imported into the US to make finished drug products. However, the company also noted the drug tariffs are still “uncertain,” and it is “unclear” if they’ll be implemented. The tariffs could lead to rising drug prices in the US, which would contradict Trump’s previous ambition to cut drug prices during his first term, the company added. Further, tariffs might not be all bad for foreign competitors, Celltrion said. If implemented, tariffs are likely to increase inflation in the US, which can lead to high exchange rates for foreign companies and make their prices more competitive compared to US-manufactured drugs. Regardless, Celltrion said it is prepared to “respond immediately” if the tariffs are implemented.