GC Green Cross Cell Posts Q2 Revenue of 12.4 Billion KRW, Achieves Record 23.6 Billion KRW in First-Half Sales

[Asia Economy, reporter Lee Chunhee] GC Green Cross Cell achieved its highest-ever first-half sales, recording a 37.0% year-on-year growth in revenue.

On August 12, GC Green Cross Cell announced in its semi-annual report that, based on separate financial statements, it posted revenue of 12.37802 billion KRW, operating profit of 927.09 million KRW, and net profit of 5.06786 billion KRW for the second quarter of this year. Compared to the same period last year, this represents increases of 34.7% in revenue, 298.8% in operating profit, and 111.1% in net profit.

For the first half of this year, the company also achieved its highest-ever first-half sales, with revenue of 23.63368 billion KRW, operating profit of 1.35992 billion KRW, and net profit of 5.47689 billion KRW. This marks year-on-year growth of 37.0% in revenue, 92.0% in operating profit, and 592.1% in net profit, respectively.

The company stated, "Despite the resurgence of COVID-19, sales of Immuncell-LC in the second quarter reached a new quarterly record, and the contract development and manufacturing organization (CDMO) business segment also continued to grow, driving the increase in revenue." In particular, last month, GC Green Cross Cell amended its CDMO contract for clinical trial drugs in the United States, increasing the contract value by 63% to 8.9 million USD (approximately 10.3 billion KRW). In addition, the company is generating approximately 140,000 USD (about 162.55 million KRW) in monthly ancillary usage revenue related to GMP usage and facilities. These factors are expected to contribute to continued revenue growth and profit expansion.

In March, Green Cross Cell became the only company among advanced biopharmaceutical firms to obtain a license for the management of human cells and related materials. On August 4, it also acquired an additional “cell processing facility license,” enabling the company to conduct both specialized CDMO business for cell therapies and clinical research as an advanced regenerative medical institution.

Based on consolidated financial statements that include the results of its subsidiaries, GC Lymphotec in Japan and Novacell in the United States, the company recorded second-quarter revenue of 12.61765 billion KRW, operating profit of 672.04 million KRW, and net profit of 4.82173 billion KRW.

Lee Deukjoo, CEO of Green Cross Cell, stated, “The increase in sales volume of Immuncell-LC has achieved economies of scale sufficient to overcome the increased fixed costs resulting from the relocation of the Yongin Cell Center and the expansion of advanced facilities and quality control expenses. This has led to production volumes surpassing the break-even point (BEP), resulting in increased contribution margin and gradually improving profit margins, which we view as a positive sign.” He added, “In addition, Novacell in the United States is conducting GMP-level CAR-T therapy production and additional research to enter clinical trials for CAR-T therapies, and we plan to proceed with the clinical trial application process in the second quarter of next year without any delays.”

Meanwhile, on July 16, Green Cross Labcell and Green Cross Cell announced their merger through a public disclosure. Green Cross Labcell will remain as the surviving company, while Green Cross Cell will be dissolved after the merger. The company plans to finalize the merger through a shareholders’ meeting scheduled for September 13.

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