GC Cell Maintains Profit Despite COVID-19 Impact

First-quarter Sales of 8.1 Billion KRW, Operating Profit of 500 Million KRW
Immuncell-LC Sales at 7.3 Billion KRW, Down 12% Year-on-Year
Full-scale Launch of Global-level Cell Therapy CMO Business

[Asia Economy, reporter Park Hyungsoo] GC Cell, a developer of cell therapies, announced on May 15 that it achieved sales of 8.1 billion KRW on a standalone financial statement basis in the first quarter of this year.

GC Cell's first-quarter sales decreased by 7% compared to the same period last year. During the same period, operating profit dropped by 80% to 500 million KRW, and the company recorded a net loss of 1.6 billion KRW. The net loss was attributed to recognizing valuation losses on investment-related financial assets.

A company representative explained, "Sales declined due to the impact of COVID-19, which led to a decrease in operating profit," adding, "Compared to the same period last year, research and development expenses increased by 105%, resulting in a temporary deterioration in profitability."

Sales of the immuno-oncology drug 'Immuncell-LC' amounted to 7.3 billion KRW, down 12% year-on-year due to the effects of COVID-19. Cancer patients with underlying conditions were unable to follow normal treatment schedules as the virus spread. Difficulties in accessing hospitals also disrupted business activities.

Since last month, as the spread of the virus has slowed, cancer patients have been able to receive regular medical care. As major client hospitals and long-term care hospitals return to normal operations, sales are gradually recovering.

On a consolidated financial statement basis, reflecting the performance of its Japanese subsidiary GC Lymphotec, first-quarter sales were 8.6 billion KRW, with operating profit of 500 million KRW and a net loss of 1.6 billion KRW.

Lee Deukju, CEO of GC Cell, stated, "It may appear that growth has slowed in the first quarter due to the impact of COVID-19 and the decline in Immuncell-LC sales, but in reality, this was the most important and busiest period for advancing the Cell Center, which is the company's long-term growth engine."

GC Cell has completed preparations for obtaining GMP certification for the Cell Center and for contract manufacturing of clinical trial drugs in the United States. The company plans to fully launch its global-level cell therapy CMO business using the Cell Center to create high added value.

As part of its CMO business achievements, GC Cell is producing clinical trial drugs for the domestic phase 1/2a study of the cervical cancer treatment 'BVAC-C.' The company is also successfully carrying out various cell therapy contract manufacturing agreements. Last year, Immuncell-LC became the first cell therapy product in Korea to surpass annual sales of 30 billion KRW.

This content was produced with the assistance of AI translation services.