GC Cell Achieves 40.1 Billion KRW in Sales Last Year, Up 12% Year-on-Year

[Asia Economy, reporter Yoo Hyunseok] GC Cell, a company specializing in cell therapy, announced on February 8 that its standalone financial statements showed sales of 40.1 billion KRW in 2020, a 12% increase compared to the previous year, according to a disclosure regarding a change of 30% or more in sales or profit structure.

Improved performance in the Immuncell-LC Injection and contract development and manufacturing organization (CDMO) business divisions drove the increase in sales. However, operating profit and net profit decreased by 50% and 68%, respectively, to 2.7 billion KRW and 3.4 billion KRW.

Since the second half of last year, the full-scale operation of the Cell Center led to an increase in fixed costs, such as expenses for maintaining advanced production facilities and improving production quality, as well as depreciation. In addition, operating profit and net profit declined due to increased R&D expenses for CAR-T therapy development and a temporary decrease in financial asset income that had been reflected in the previous fiscal year.

However, the company explained that CDMO sales to Artiva Biotherapeutics in the United States and GC Labcell surged by 524% year-on-year, demonstrating growth potential.

In 2021, the company plans to expand its CDMO business to grow in scale and achieve economies of scale. It also intends to focus on increasing gross profit by reducing fixed costs and cost ratios.

GC Cell signed an 8.2 billion KRW CDMO contract with Artiva in the US and GC Labcell in April last year and is currently producing under this agreement.

Based on the consolidated financial statements for 2020, which include the performance of its Japanese subsidiary GC Lymphotec (Lymphotec Inc.), the company recorded sales of 40.9 billion KRW, operating profit of 1.2 billion KRW, and net profit of 2 billion KRW.

Lee Deukjoo, CEO of GC Cell, stated, "Despite the global pandemic in 2020, we achieved our planned Cell Center manufacturing facility approval, secured CAPA for Immuncell-LC Injection, and made progress in CAR-T therapy research and development." He added, "However, inevitable increases in fixed costs and cost of goods sold occurred as we focused on maintaining global-level production facilities and quality, as well as investing in CAR-T therapy R&D, which will drive the future value of GC Cell."

He continued, "The CDMO business has grown from accounting for 6% to 11% of total sales, indicating successful business diversification, and this year we will strive to achieve tangible results in the solid tumor-targeted CAR-T therapy sector currently under development."

In March last year, GC Cell announced groundbreaking results from a preclinical trial of a CAR-T therapy targeting pancreatic cancer, achieving 100% cancer cell eradication. Through its US subsidiary Novacel Inc., established last year, the company is accelerating research and development to enter clinical trials in the United States.

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