SEOUL (Reuters) -South Korean pharmaceutical firm Celltrion said on Tuesday that in an attempt to offset the risk of U.S. tariffs it had become the preferred bidder to acquire a U.S. manufacturing factory from an unnamed global pharmaceutical company. Celltrion’s Founder and Chief Executive Seo Jung-jin told a briefing it planned to invest 700 billion […]
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South Korea’s Celltrion says tapped to buy US pharma factory to offset tariff risk
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SEOUL (Reuters) -South Korean pharmaceutical firm Celltrion said on Tuesday that in an attempt to offset the risk of U.S. tariffs it had become the preferred bidder to acquire a U.S. manufacturing factory from an unnamed global pharmaceutical company.
Celltrion’s Founder and Chief Executive Seo Jung-jin told a briefing it planned to invest 700 billion won ($503.78 million) in the acquisition and operation of the factory, without giving a breakdown of the figure.
The company could make an additional investment ranging from 300 billion won to 700 billion won depending on U.S. tariff policy.
The U.S. has been conducting a national security investigation into the pharmaceutical sector and President Donald Trump said earlier this month that pharmaceutical tariffs could be as high as 200%.
He expected the tariffs to offer “opportunities” by increasing drug prices and reducing competition, thus improving profitability.
Celltrion said it would not disclose further details, including the name of the seller and its location, until the signing of the final agreement, which is expected in early October.
(Reporting by Joyce Lee and Hyunjoo JinEditing by Ed Davies)