GC Cell Reports 40% Year-on-Year Sales Growth in Q1

Immuncell-LC Sales Reach 9.8 Billion KRW, Up 35% Year-on-Year
Business Focus Enhanced Through CDMO Division Reorganization
Novacell, U.S. Subsidiary, Producing GMP-Grade CAR-T Therapies and Preparing for Clinical Entry
Expansion of New R&D Pipelines Including Off-the-Shelf CAR-CIK Products

[Asia Economy, Reporter Park Hyungsoo] GC Cell, a company specializing in immunotherapy, announced on May 14 that its standalone financial statements show sales of 11.3 billion KRW in the first quarter of this year, a 40% increase compared to the same period last year.

According to the standalone financial statements, GC Cell posted an operating profit of 400 million KRW and a net profit of 400 million KRW in the first quarter.

Despite the increase in sales, operating profit decreased by 9%. The company attributed this to higher fixed costs resulting from the full-scale operation of its cell center. GC Cell expects that, in the long term, expanding the production capacity (CAPA) of Immuncell-LC and improving quality control will serve as a foundation for future growth.

The contract development and manufacturing (CDMO) segment, which is still in its early stages, saw sales grow 13-fold compared to the same period last year. GC Cell has recently established a dedicated division and reorganized its structure to enhance systematic project management, quality review, regulatory support services, and to strengthen its sales capabilities.

Based on consolidated financial statements, which include the performance of its U.S. subsidiary Novacell and Japanese subsidiary GC Lymphotec, the company reported sales of 11.4 billion KRW, an operating loss of 300 million KRW, and a net loss of 300 million KRW.

Lee Deukjoo, CEO of GC Cell, stated, "Despite the COVID-19 pandemic, we achieved a 40% year-on-year sales growth thanks to company-wide efforts," and explained, "Operating profit decreased due to increased fixed costs required to maintain world-class production facilities and quality."

He added, "In the long term, we have secured future growth engines by expanding production capacity and improving quality control. Going forward, we will pursue economies of scale and continuous cost reduction strategies to increase profits, while focusing on the CDMO business, which is already delivering results."

He also said, "Based on a stable business structure, we will actively expand new pipelines such as off-the-shelf CAR-CIK products that have broad applicability."

GC Cell is producing GMP-grade CAR-T therapies through its U.S. subsidiary Novacell and is accelerating preparations to enter clinical trials in the United States. In addition, by utilizing its CAR platform technology, the company is developing off-the-shelf allogeneic CAR-CIK (cytokine-induced killer cell) therapies and has unveiled its vision to grow as a leading immunotherapy company.