[Asia Economy, Reporter Yoo Hyunseok] GC Green Cross Cell, a company specializing in cell therapy, announced on November 16 that it achieved 11.1 billion KRW in sales for the third quarter of this year on a separate financial statement basis. Operating profit and net profit were 300 million KRW and 1.5 billion KRW, respectively.
Sales of the immuno-oncology drug 'Immuncell-LC' reached 10.2 billion KRW in the third quarter. According to the company, this is the first time a cell therapy product has surpassed 10 billion KRW in quarterly sales. This sets a new record five years after achieving annual sales of 10 billion KRW in 2015.
The company explained that it overcame sluggish sales in the first and second quarters caused by the impact of COVID-19. However, fixed costs increased due to the advanced utility facilities and depreciation expenses of the cell center, which began full-scale operations in the second half of the year. Operating profit declined due to increased R&D expenses for CAR-T therapy development.
The next-generation CAR-T therapy for pancreatic cancer currently under development is progressing smoothly, with plans to submit an IND (Investigational New Drug) application to the FDA for entry into a US Phase 1/2a clinical trial in the second half of next year. In addition, in 2021, the company plans to significantly expand its contract development and manufacturing (CDMO) business to drive external growth and achieve economies of scale, focusing on increasing sales profit while reducing fixed costs and cost ratios.
In fact, as the CDMO business, including the US cell therapy research company 'Artiva Biotherapeutics' and GC Green Cross Labcell, began in earnest following the announcement in June, cumulative sales for the third quarter reached 1.9 billion KRW, a 335% increase compared to the previous year.
On a consolidated financial statement basis, including the performance of its Japanese subsidiary GC Lymphotec (Lymphotec Inc.), the company recorded third-quarter sales of 11.4 billion KRW, operating profit of 200 million KRW, and net profit of 1.4 billion KRW.
Lee Deukjoo, CEO of GC Green Cross Cell, stated, "The growth in Immuncell-LC sales, which had declined due to the impact of COVID-19, has recovered," adding, "As CDMO business sales increase, GC Green Cross Cell's business diversification is progressing smoothly."
He continued, "Although costs have increased due to the advancement of production facilities at the cell center and the establishment of globally enhanced quality management and systems, these are essential choices to produce the highest quality cell therapy products and strengthen competitiveness. While operating profit may inevitably decrease for the time being due to increased fixed costs, we plan to use next year's entry into US clinical trials for CAR-T therapy and the expansion of the CDMO business as a turning point for GC Green Cross Cell to reach a global level."
In March of this year, GC Green Cross Cell announced groundbreaking results in a preclinical trial of CAR-T therapy for pancreatic cancer, achieving 100% elimination of cancer cells. The company is accelerating its research and development efforts, including investing in its US subsidiary Novacel Inc., with the goal of entering US clinical trials in 2021.
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