GC Labcell Reports Record-High Q2 Sales of 29.2 Billion KRW, Operating Profit Down 48%

"Operating Profit Temporarily Impacted by Increased R&D Expenses"

[Asia Economy, reporter Kim Jihee] GC Labcell announced on July 26 that its consolidated operating profit for the second quarter of this year was 1.3 billion KRW, a decrease of 47.9% compared to the same period last year. During the same period, sales reached 29.2 billion KRW, marking a 46% increase and setting a new all-time high.

GC Labcell explained, "Operating profit was temporarily impacted due to an increase in research and development (R&D) expenses, such as expanding specialized personnel." The company added, "For the first half of the year, operating profit more than doubled year-on-year to 5 billion KRW, continuing its record-breaking performance since its founding." Thanks to balanced growth across all business segments, net profit for the first half was also tallied at 6.3 billion KRW.

By business segment, demand for COVID-19 specimen testing rose, leading sales in the core specimen testing business to increase by 53% year-on-year to 21.4 billion KRW. As a result, bio-logistics sales also grew by 51.6% compared to the previous year. The consolidated subsidiary GC Cell, which operates a clinical trial specimen analysis business, achieved a 52.1% increase in sales compared to the same period last year.

In line with its commitment to strengthening R&D for sustainable growth, GC Labcell raised its R&D expenditure to approximately 15% of sales in the first half of the year. The interim results of the US Phase 1/2 clinical trials for its NK cell therapy 'AB101' are expected to be announced as early as the end of this year.

A GC Labcell representative stated, "Sales growth is expected to continue in the second half of the year, driven by the ongoing COVID-19 situation and inflows from technology transfer fees," adding, "We will also focus on improving profitability through management efficiency."

Meanwhile, GC Labcell recently announced its merger with GC Cell, declaring its ambition to become a leading global cell therapy company. The company aims to build a fully developed pipeline across all areas of cell therapy and enhance corporate value through its cash-cow contract development and manufacturing organization (CDMO) business, among other initiatives.

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