GC Green Cross recorded a nearly 70% increase in operating profit in the third quarter this year, achieving significant improvement in profitability. This was driven by the combined effects of revenue growth in high-margin products and reduced losses at subsidiaries.
GC Green Cross disclosed on the 2nd that its consolidated operating profit for the third quarter of this year was provisionally recorded at 49.2 billion won. This represents a 68.5% increase compared to the same period last year. Revenue for the same period decreased by 14.3% to 522.1 billion won. Net income increased by 1,051.9% to 208.5 billion won.
On a cumulative basis for the first three quarters, operating profit decreased by 2.8% year-on-year to 62.7 billion won, while revenue fell by 7.7% to 1.3789 trillion won. Net income rose by 214.2% to 229.7 billion won.
Revenue growth in high-margin products, such as the flu vaccine and "Aligllo," which are produced in-house, drove the improvement in profitability. Flu vaccine sales increased due to the addition of results deferred from the second quarter. Vaccine category sales in the third quarter were 104.2 billion won, a 13.4% increase from 91.9 billion won in the same period last year.
Third-quarter revenue for Aligllo, a blood product exported to the United States, was $46 million (approximately 62 billion won), an increase of approximately 77% compared to the same period last year. Cumulative third-quarter revenue reached $97 million (approximately 130 billion won), bringing the achievement of this year's annual sales target of $150 million (approximately 201 billion won) within reach.
Major subsidiary ABO Plasma, a U.S. plasma center, significantly narrowed its losses this quarter. In particular, increased utilization rates at seven plasma centers alleviated fixed cost burdens.
However, the overall decline in revenue is analyzed as being due to factors such as the exclusion of Green Cross Wellbeing from consolidated financial statements and decreased sales of Paxlovid following reduced demand for COVID-19 treatments.
Net income increased significantly. This was the result of reflecting an advance payment of approximately 286.8 billion won from the sale of Curevo to Eli Lilly in May. A GC Green Cross official emphasized, "The medium- and long-term business value is also significant, including potential contract manufacturing organization (CMO) opportunities and revenue-linked royalties that will arise when the Curevo-related pipeline (drug candidates) is commercialized."
An upfront payment of 46.8 billion won from a recently signed global technology transfer agreement for a next-generation Fabry disease treatment candidate is scheduled to be reflected in fourth-quarter results.
A GC Green Cross official stated, "With the addition of technology transfer achievements and growth in core businesses, we will maintain a favorable earnings trend in the second half," adding, "We will continue stable revenue growth and profitability improvement through solid performance in existing businesses and expansion of global products."
Researcher Lee Ji-su at IBK Investment & Securities noted, "Aligllo will comfortably achieve this year's sales target of $150 million," adding, "In the medium to long term, we are paying attention to the scalability of the high-concentration subcutaneous immunoglobulin (SCIG) formulation currently in development." He continued, "GC Green Cross plans to submit an Investigational New Drug application for a Phase 3 clinical trial in the United States in 2027 and begin construction of a dedicated production line at its Ochang plant," analyzing, "We expect SCIG to contribute to future product portfolio expansion and increased market penetration by leveraging the U.S. sales network established by Aligllo."
in THEBIO
