Cha Biotech Reports Operating Profit of 1.4 Billion KRW in 2Q, Turning to Profit Year-on-Year

CHA Biotech announced on the 11th that its consolidated operating profit for the second quarter of this year amounted to 1.39 billion KRW, marking a turnaround to profit compared to the same period last year.

ChabioTech CI. [Image provided by ChabioTech]

During the same period, sales increased by approximately 13% to 239.765 billion KRW, and net profit for the period turned positive at 3.156 billion KRW.

Expanding the consolidated sales to the first half of this year, it was recorded at 476.2 billion KRW, a 19% increase compared to the same period last year. Operating profit and net profit for the first half were 13.5 billion KRW and 8.9 billion KRW, respectively.

A CHA Biotech official explained the background of the performance improvement, stating, "In overseas business, in addition to the steady growth shown in the US and Australia, sales in Japan also grew rapidly," and added, "The increase in sales and profits of domestic subsidiaries such as CMG Pharma and Cha Cares was a factor in the performance rise."

Additionally, sales from the technology transfer contract worth 32 million USD (approximately 43 billion KRW) signed in March with Astellas Regenerative Medicine Center (AIRM), a subsidiary of the Japanese global pharmaceutical company Astellas, were reflected. CHA Biotech also noted that its domestic business, including cord blood, bioinsurance, domestic cell therapy CDMO (cell therapy development and manufacturing outsourcing), genomic testing, and consulting, improved compared to the previous year, achieving high growth.

CHA Biotech explained that in the business sector, it is securing its own cash-generating capability necessary for conducting research and development (R&D) through high sales growth and profit realization, and in the R&D sector, it is also securing resources through technology exports.

Osanghoon, CEO of CHA Biotech, said, "CHA Biotech achieved remarkable growth in both separate and consolidated bases in the first half of 2023," adding, "Based on the growing business structure, we will focus on achieving results in global commercialization of cell therapy and global CDMO business to secure differentiated competitiveness."

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