Celltrion Secures $73 Million CDMO Deal

Korean biopharmaceutical company, Celltrion, has secured a $72.8 mn contract with TEVA Pharmaceuticals International for the development and manufacturing of the migraine treatment Ajovy.

The contract – which only runs until July 30, 2025 - represents 4.6% of Celltrion’s 2023 revenue but plans to establish a fully owned CDMO subsidiary by the end of 2024, with facility expansion set for next year.

The following article originally appeared in Korea JoongAng Daily.

Celltrion secured a 100.4 billion won ($72.8 million) deal for contract development and manufacturing (CDMO) with TEVA Pharmaceuticals International for the migraine treatment Ajovy.

The contract runs through July 30 of next year, the pharmaceutical firm said Tuesday through an electronic disclosure.

Teva Pharmaceuticals is the U.S. subsidiary of the Israel-based Teva Pharmaceutical Industries.

The contract amount accounts to 4.6 percent of Celltrion’s 2023 revenue.

Celltrion is ramping up its efforts to enter the CDMO business, albeit as relative latecomer compared to Samsung Biologics and Lotte Biologics. The firm announced Friday that it planned to establish a fully owned CDMO subsidiary by the end of this year, with facility expansion and business operations set to begin next year.

Samsung Biologics operates four plants with a fifth plant under construction. The combined manufacturing capacity of the five plants is expected to be 784,000 liters (828,000 quarts) per year.

Lotte Biologics is building a plant with an annual production capacity of 360,000 liters.

The Korea Biotechnology Industry Organization projected that the global biopharmaceutical CDMO market would grow from $19.68 billion in 2023 to $43.85 billion in 2029, with an average annual growth rate of 14.3 percent.

For more, please find the original story source here.