Celltrion Group Chairman Seo Jung-jin said the company plans to establish a research center in India as part of its global expansion into the contract development and manufacturing organization (CDMO) business.

The move comes as the group seeks to recruit specialized research personnel for its new CDMO subsidiary, Celltrion BioSolutions, which was officially incorporated on Tuesday.

"India will be a cost-effective option for recruiting research personnel," Chairman Seo said during a press briefing on the establishment of Celltrion BioSolutions. “The company aims to secure approximately 500 Ph.D.-level scientists across its planned research centers in Korea, the U.S., Europe, and India.”

While Seo did not elaborate on how many research personnel would be recruited in each country, he did stress that while Korea would remain the headquarters for research and development, the Indian facility would play a crucial role in handling specialized repetitive testing and research tasks.

According to Seo, the selection of India aligns with Celltrion's strategy to create a global research network that maximizes efficiency while controlling costs.

“The Indian research center, along with planned facilities in the U.S. and Europe, will be integrated with the company's existing network of 40 overseas legal entities,” he said. “This expansion builds on Celltrion's established presence in the region and aims to leverage India's growing biotechnology sector and skilled workforce.”

When questioned about the research center's staffing strategy, Seo stressed that starting with 20-30 employees in early 2025, the company plans to focus on training new graduates rather than hiring experienced staff.

"We are confident in nurturing new entrants to become skilled personnel," he said, pointing to this approach as a key reason for choosing India, where the company sees a strong pipeline of emerging scientific talent.

Outline for Celltrion BioSolutions

During the briefing, Seo gave broad guidance regarding how the new subsidiary will be established and its business plans.

“Celltrion BioSolutions will start with an initial capital of 10 billion won ($6.9 million) and a wholly-owned subsidiary of Celltrion,” Seo said. “Lee Hyuk-jae, a senior vice president at Celltrion, will serve as CEO of the new subsidiary."

The company will maintain headquarters separate from Celltrion in Songdo, Incheon, emphasizing operational independence while leveraging Celltrion's expertise and resources, Seo added.

Regarding future investment, Seo stressed that the Celltrion group plans to invest between 2-3 trillion won in the future, adding that more than half of the funding would come from internal sources within the Celltrion Group.

“While the company remains open to external funding, we will maintain Celltrion's ownership at over 50 percent at all times,” Seo said.

When asked about potential public listing, Seo indicated that it would only be considered if additional external funding becomes necessary.

The company outlined an ambitious expansion strategy, starting with 100,000 liters of manufacturing capacity to serve Celltrion's internal needs, with plans to expand to 200,000 liters based on market demand.

Seo emphasized the company's cost advantages in constructing such plants as he estimated that it would require the company 800 billion won to build a 100,000-liter facility, which he claimed would be more economical than competitors.

He also noted that their extensive experience would help minimize construction and approval timelines.

Responding to industry concerns about antibody CDMO market oversupply, Seo acknowledged the risk but differentiated Celltrion's approach through comprehensive service offerings.

"Besides Lonza, there are not many players who can offer all CDO, CRO, and CMO services," he noted. “The company expects to generate minimum revenue of 100 billion won per 10,000 liters, targeting an operating profit margin of around 30 percent, with projected total revenue reaching 3 trillion won by 2031.”

Beyond traditional antibody manufacturing, Celltrion BioSolutions plans to offer services in cell and gene therapies, requiring specialized CGMP platforms.

Seo explained that these facilities would be smaller, potentially container-sized, and strategically located near major hospitals. The company also plans to expand into ADC conjugation, microbiome treatments, and vaccine production, with specific facility plans to be determined based on market demand.

The chairman also addressed questions about the company's current valuation in the Korean market. "Korean companies are still undervalued," Seo noted, adding that Celtrion would focus on driving stock prices through performance rather than short-term measures.

He highlighted the company's recent implementation of shareholder-friendly policies, including cash and stock dividends, as well as share buybacks and cancellations of treasury shares. The company expects to close 2024 with 3.5 trillion won in sales, meeting its previous guidance, and targets 5 trillion won in sales for 2025.

Addressing technological capabilities in entering the CDMO business, Seo emphasized the company's expertise in drug delivery systems, noting that their proprietary oral delivery and inhalation technology would be part of their service offerings.

He also revealed that Celltrion is currently developing obesity therapeutics using peptide technology, with plans to offer these platforms as part of their CDMO services. The company's expertise extends to microbiome treatments, currently in an animal testing phase, with plans to enter human trials if results prove positive.

When questioned about potential conflicts of interest with their existing drug development business, Seo pushed back against these concerns, stating that many global biotech startups already contacted Celltrion seeking investment and expertise.

"It's not a matter of conflict of interest and it's about being a reliable partner," he said. “Many of these companies specifically ask about service offerings, suggesting natural market demand for their CDMO expansion.

Looking ahead, Chairman Seo emphasized that the company would maintain its strong track record with investors and employees. He announced plans to present the company's innovative drug pipeline at the upcoming JP Morgan Healthcare Conference in January.