[Market Focus] GC Wellbeing Surges on Strong Q1 Earnings

As of 9:20 a.m. on May 2, GC Wellbeing was trading at 8,510 won on the KOSDAQ market, up 8.68% from the previous day's closing price. This appears to be due to the sharp increase in operating profit announced in the first quarter earnings report released on April 30.

On April 30, the previous trading day, GC Wellbeing announced its preliminary consolidated financial results for the first quarter, reporting sales of 34.8 billion won and operating profit of 5 billion won. Compared to the same period last year, sales increased by 5.3%, while operating profit surged by 81.6%.

GC Wellbeing is engaged in the manufacture and sale of prescription drugs (placenta injections, antioxidant injections, vitamin injections, mineral injections, etc.), health functional foods for hospitals and clinics (vitamins, probiotics, etc.), research and development of pharmaceuticals and natural materials, and medical devices (skin boosters, fillers, etc.). Based on consolidated financial statements, the company recorded annual sales of 133.8 billion won and operating profit of 13 billion won last year.

The company's flagship product is 'Laennec,' a prescription drug known as a placenta injection. Last year alone, it generated sales of 38.8 billion won, securing a 78% share of the domestic market. The company is working to improve its growth rate through new administration methods, additional formulations, and entry into the Chinese market. In February this year, GC Wellbeing acquired a 21.35% stake in Inibio, a company that produces and sells botulinum toxin (botox), for 40 billion won to expand exports. Inibio, which became the fifth domestic company to obtain product approval for botulinum toxin in July 2023, is currently seeking regulatory approvals in several overseas markets, including Brazil and China.