GC Biopharma ends its 2-quarter deficit run

...succeeds in improving profitability

Operating profit in Q2 KRW 23.7 billion... 81% surge YoY

“Expands sale of profitable products... the effect of efficient cost execution"

Driven by the company’s blood derivative business... “will release the product in the U.S. in 2H next year”

GC Biopharma, which had recorded an operating loss for 2 consecutive quarters, succeeded in turning a profit this quarter.

 

GC Biopharma explained that the company has succeeded in doing so by increasing sales of highly profitable products and efficient execution of costs.

 

GC Biopharma also announced plans to accelerate its overseas business with a focus on blood derivatives.

 

GC Biopharma explained that the company plans to release its immunoglobulin 10% for intravenous administration product within the second half of next year and speed up exports of its blood product plant in Indonesia.

 

Ends the 2nd quarter streak of operating losses...’Expansion of high-margin product sales + reduced expenditures’ GC Biopharma publicly announced on the 1st that its operating profit in Q2, based on consolidated financial statements, was KRW 23.7 billion, up 80.9% from the KRW 13.1 billion in the same period last year.

 

Also, sales increased by 2.3% YoY to KRW 432.9 billion.

 

The company had consecutively recorded an operating loss in Q4 last year and Q1 this year.

 

The operating loss was KRW 18 billion in Q4 last year and KRW 13.6 billion in Q1 this year.

 

GC Biopharma

However, the company had successfully marked a turnaround and turned to a profit in Q2.

 

GC Biopharma explained, "We secured profitability by increasing sales of profitable products and efficient cost execution." The company saw the largest increase in its sales of vaccines.

 

GC biopharma’s vaccine sales had added up to KRW 27.1 billion in Q1 this year, but this had increased 3.6 times to reach KRW 97.4 billion in Q2.

 

This is a 15.4% increase from the KRW 84.4 billion in Q2 last year.

 

The analysis is that the separate reflection of sales of flu vaccines exported to the southern hemisphere largely affected the results.

 

SG&A expenses decreased from KRW 128.8 billion in Q2 of last year to KRW 117.1 billion in Q2 this year.

 

Among SG&A expenses, ordinary development expenses decreased by 8.4% from KRW 50 billion to KRW 45.8 billion.

 

Change in sales of GC Biopharma

Spurs sales of its blood derivative products...Plans to release ‘IVIG 10%’ in the U.S.

 

within the second half of next year The company also plans to accelerate its overseas business for blood derivative products in the future.

 

The company’s US project has been attracting the most attention.

 

GC Biopharma plans to release an immunoglobulin 10% (IVIG-SN 10%) product for intravenous administration in the US in the second half of next year.

 

GC Biopharma submitted a BLA to the US Food and Drug Administration (FDA) on the 14th of last month.

 

FDA’s review results will be confirmed on January 13 next year (local time).

 

Spurs sales of its blood derivative products...Plans to release ‘IVIG 10%’ in the U.S.

 

within the second half of next year The company also plans to accelerate its overseas business for blood derivative products in the future.

 

Among those, the company’s plans in the US have been attracting the most attention.

 

GC Biopharma plans to release an immunoglobulin 10% (IVIG-SN 10%) product for intravenous administration in the US in the second half of next year.

 

GC Biopharma submitted a BLA to the US Food and Drug Administration (FDA) on the 14th of last month.

 

FDA’s review results will be confirmed on January 13 next year (local time).

 

In the mid-to-long term, the company set the goal of occupying 3% of the IVIG market share in the US.

 

According to GC Biopharma, the US IVIG market will rise to amount to USD 13.1 billion by 2023 (approximately KRW 16.87 trillion).

 

As only 7 companies are selling 10% IVIG products in the US, the company’s understanding is that there remains a continuous imbalance between supply and demand in the field.

 

GC Biopharma

The company also plans to speed up its blood product plant business in Indonesia.

 

GC Biopharma was selected as a preferred contractor for blood product plant construction by the Indonesian government in January this year.

 

The company has also signed business agreements with the Indonesian Red Cross and local pharmaceutical companies.

 

GC Biopharma expects to be able to execute the main contract within this year.

 

In Brazil, the company signed a long-term supply agreement for its IVIG 5% product.

 

Under the agreement it had signed with the Brazilian pharmaceutical company, Blau, GC Biopharma will supply products worth USD 90 million by 2025.

 

It will additionally supply products until 2028, and the specific supply scale for this will be determined after 2025.

 

GC Biopharma predicted that profitability would further improve as the price of IVIG products in Brazil is around twice as high as that in Korea.

 

The company also decided to continue operating its mRNA project.

 

GC Biopharma plans to complete the mRNA pilot production facility at its Hwasun plant within the year.

 

For this, the company invested KRW 15 billion in its Hwasun plant in March this year.

 

GC Biopharma plans to complete the construction of an mRNA pilot production facility this year and begin test operations.

 

GC Biopharma

Also, the company decided to develop a mRNA-based treatmnet to treat succinic semialdehyde dehydrogenase deficiency (SSADHD), a rare intractable disease.

 

The company, which first has been devloping the treatment as a protein drug, has changed tracks and decided to develop an mRNA drug.

 

GC Biopharma plans to make the final decision on a candidate substance in the first half of next year.

 

Since there is currently no product on the market released to treat this disease, GC Biopharma predicts that it will become a first-in-class product if clinical trials are successful.