GC Cell Achieves Record-High First-Half Sales

Published 12 Aug.2021 14:22(KST)

[Asia Economy, Reporter Park Hyungsu] GC Cell, an immunotherapy developer, announced on August 12 that its standalone financial statements showed a 37% increase in sales for the first half of this year compared to the same period last year. The company achieved its highest-ever first-half sales.

According to its standalone financial statements, GC Cell recorded sales of 23.6 billion KRW in the first half of this year. Operating profit rose by 92% to 1.4 billion KRW, while net profit increased by 592% to 5.5 billion KRW.

Despite the ongoing spread of COVID-19, the company set a new quarterly sales record for Immuncell-LC Injection in the second quarter. The contract development and manufacturing organization (CDMO) business segment also continued to grow, contributing to the increase in sales.

Last month, the company amended its CDMO contract for clinical trial drugs in the United States, increasing the contract value by 63% to 8.9 million USD. In addition, it generated approximately 140,000 USD in monthly ancillary revenue from GMP facility usage and related services. Continued growth in sales and profits is expected.

In March, GC Cell became the only company among those with advanced biopharmaceuticals to obtain a license for the management of human cells and related materials. On August 4, the company also received approval for its cell processing facility, enabling it to conduct specialized CDMO business for cell therapies and to carry out clinical research as an advanced regenerative medicine institution.

On a consolidated basis, reflecting the performance of its subsidiaries GC Lymphotec in Japan and Novacell in the United States, the company recorded sales of 24 billion KRW, operating profit of 400 million KRW, and net profit of 4.5 billion KRW.

Lee Deukjoo, CEO of GC Cell, stated, "The increase in Immuncell-LC Injection sales is achieving economies of scale that overcome the higher fixed costs resulting from the relocation of the Yongin Cell Center and investments in advanced facilities and quality control." He added, "We view the increase in contribution margin and gradual improvement in profit margins, driven by production volumes exceeding the break-even point (BEP), as a positive signal."

He continued, "At Novacell in the United States, we are conducting GMP-level production and additional research for CAR-T therapies to enter clinical trials."

GC Cell is pursuing clinical trials in the United States for a CAR-T therapy targeting pancreatic cancer through its local subsidiary Novacell. The company is also developing an off-the-shelf, allogeneic CAR-CIK (cytokine-induced killer cell) therapy using its CAR platform technology.