GC Cell Reports Operating Profit of 36.1 Billion KRW in Q1, Up 876% Year-on-Year

[Asia Economy Reporter Lee Gwan-joo] GC Cell announced on the 27th that its provisional consolidated sales for the first quarter reached 83.8 billion KRW, marking a 207% increase compared to the previous year. Operating profit rose by 876% to 36.1 billion KRW.

This is the first time GC Cell's quarterly operating profit has exceeded 30 billion KRW, with the first quarter operating profit setting a new record equivalent to last year's annual operating profit. Sales also reached an all-time high.

The specimen testing business showed remarkable growth. Due to the spread of the Omicron variant, sales in the specimen testing business increased by 216% compared to the same period last year, and the bio-logistics business also grew by 23%. Additionally, steadily incoming technology transfer fee revenues contributed to the strong performance.

Furthermore, the cell therapy and contract development and manufacturing organization (CDMO) businesses began to be fully reflected in sales from this year, supporting the growth trend. In terms of profitability, economies of scale were realized after the merger of the two companies, reducing some fixed costs such as manufacturing costs, which led to a significant increase in operating profit compared to the previous year.

GC Cell secured a CDMO foundation connecting Asia and the United States through the joint acquisition of GC (Green Cross Holdings) and the U.S. cell and gene CDMO BioCentriq. GC Cell is the only company in Korea that possesses both NK and T cell pipelines, and based on its know-how of successful technology exports to multinational pharmaceutical companies, it plans to accelerate its entry into the world's largest CDMO market.

A GC Cell official stated, “This year will be a year to maximize financial performance while laying the foundation for sustainable growth,” adding, “The entry into the U.S. CDMO market is part of securing new growth engines and is expected to become an important source of revenue in the future.”

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