Celltrion Group has launched a new subsidiary specializing in contract development and manufacturing organization (CDMO) of biopharmaceuticals, with plans to invest up to 3 trillion won ($2 billion). The move comes as the CDMO market, which focuses on developing and manufacturing drugs on behalf of clients, experiences rapid growth.
The company announced on Dec. 17 the establishment of Celltrion BioSolutions. Celltrion Chairman Seo Jung-jin said at a press briefing that the company had completed the incorporation of Celltrion BioSolutions, which would begin as a wholly owned subsidiary of Celltrion. He added that the new subsidiary would launch with an initial capital of 10 billion won ($7.4 million).
Seo explained that Celltrion plans to invest up to approximately $1 billion of its own funds to build infrastructure, with an additional $1 billion expected to be raised from external sources.
Seo noted that the location for the new subsidiary’s manufacturing facility is still under review, with construction of the first plant—designed for a production capacity of 100,000 liters—set to begin next year. The facility will eventually expand to a maximum capacity of 200,000 liters and will be equipped to manufacture antibody-drug conjugates (ADCs) and cell and gene therapies (CGTs).
The launch of Celltrion BioSolutions marks the company’s strategic shift from its traditional biosimilar-focused business model to an expanded presence in the CDMO market. Celltrion stated that growing demand for biopharmaceuticals globally, as well as direct inquiries from potential clients, prompted its September decision to pursue a full-scale investment in CDMO operations.
The subsidiary plans to provide end-to-end services, including drug candidate selection, cell line and process development, clinical trial planning, regulatory documentation, and commercial-scale production. The company has appointed Lee Hyuk-jae, a senior vice president at Celltrion, as the new unit’s CEO.
According to research firm Mordor Intelligence, the global CDMO market is projected to grow from $18.2 billion this year to $30.5 billion by 2029. Celltrion expects its CDMO unit to begin generating revenue from commercial production in 2028, with anticipated total sales reaching approximately $2.3 billion by 2031.
