GC Biopharma’s Q3 Operating Profit Rises 68.5% Year on Year to 49.2 Billion Won

[Financial News] GC Biopharma sharply increased its operating profit in the third quarter, buoyed by growth in high-margin products and improved profitability at its subsidiaries. Expanded sales of its global blood product ALYGLO and the delayed recognition of influenza vaccine revenue drove the improvement in profitability.
On the 2nd, GC Biopharma said provisional consolidated results showed revenue of 522.1 billion won, operating profit of 49.2 billion won and net income of 208.5 billion won for the third quarter of this year. No year-on-year growth rate was separately provided for revenue; operating profit and net income rose 68.5% and 1,051.9%, respectively.
Among its key products, blood product ALYGLO stood out for its growth. ALYGLO generated about $46 million in sales in the third quarter. Including first-half sales of $51 million, cumulative sales reached $97 million, brightening prospects for meeting its annual target of $150 million.
The influenza vaccine also contributed to improved profitability. Revenue deferred from the second quarter was recognized in the third quarter, supporting results alongside the traditional peak season for vaccines.
One-off income also contributed to the surge in net income. The impact came from an upfront payment related to the Curevo vaccine business sold to Eli Lilly in May, which was reflected in the third-quarter results. GC Biopharma also sees potential contract manufacturing (CMO) opportunities and sales-linked royalties during the future commercialization of the pipeline as sources of medium- to long-term business value.
ABO Plasma, its U.S. plasma business subsidiary, sharply narrowed its losses as higher utilization at its seven plasma centers reduced the burden of fixed costs.
Technology-export revenue is expected to be reflected in fourth-quarter results. An upfront payment of 46.8 billion won under a recently signed global licensing agreement for a next-generation Fabry disease drug candidate is expected to be recognized as fourth-quarter revenue.
A GC Biopharma representative said, "We will continue to deliver stable top-line growth and improve profitability through solid performance in our existing businesses and expansion of our global product portfolio."

[email protected] Jung Sang-hee Reporter