GC Biopharma is expected to surpass 2 trillion won in annual sales this year. Eli Lilly and Company is set to pay about 300 billion won in the third quarter as the upfront payment for the sale of QurV, and blood-derived medicines and various vaccines are projected to contribute to results.
On the 6th, according to FnGuide, GC Biopharma's consolidation sales this year are expected to be 2.0387 trillion won, with operating profit of 74.7 billion won. Sales would be up 2% from last year, and operating profit up 8%. Net profit is projected to swing to a surplus of 138 billion won. Last year, it posted a net loss of 29.7 billion won.
◇ Is U.S. Lilly the unsung hero behind GC Biopharma's results?
In the pharmaceutical industry, there is analysis that Eli Lilly and Company is the unsung hero of GC Biopharma's sales. GC Biopharma plans to receive about 284.7 billion won in upfront payment for the sale of QurV from Eli Lilly and Company around Aug. This is the money to be paid after Lilly completes merger filing locally. If additional conditions are met, it will separately receive 21.9 billion won in upfront payment and could pocket 306.6 billion won in total. A GC Biopharma official said, "It is scheduled to be reflected in third-quarter net profit."
QurV is developing the shingles vaccine candidate amezosbatein in the United States. GC Biopharma sold its 20.3% equity in QurV to Eli Lilly and Company in May. The company said that in addition to the contract payment, it could book milestones (technology fees), royalties (a portion of sales revenue), and contract manufacturing (CMO) sales depending on development and commercialization stages.
This is also expected to help GC Biopharma's financial structure. At the end of Mar., GC Biopharma sold its 22% equity in GC Wellbeing to GC Corp. for 50.5 billion won. GC Wellbeing distributes the obesity drug Mounjaro and posted sales of 49.1 billion won in the first quarter this year. Although it did not sign a direct contract with Lilly Korea, GC Wellbeing distributes some of the Mounjaro supplied by Lilly to clients through certain wholesalers.
From the second quarter this year, GC Wellbeing is excluded from GC Biopharma's consolidation scope. Some questioned whether handing over a cash-cow subsidiary would worsen financial soundness. Shinyoung Securities researcher Chung Yoo-kyung said, "The Lilly contract payment has offset the lowered profit outlook from the sale of GC Wellbeing equity," adding, "It helps maintain financial stability."
◇ Algle and Hunterase soar… twin engines for results
GC Biopharma is also seeing results from medicines made by separating various components from blood, such as Algle and albumin. Algle treats immunodeficiency, and albumin prevents shock from excessive bleeding. Algle received product approval from the U.S. Food and Drug Administration (FDA) at the end of 2023 and alone recorded 34.9 billion won in first-quarter sales this year.
First-quarter sales of blood products, including Algle and albumin, were 114.9 billion won. A GC official said, "In the U.S. tariff policy released in April, plasma products were included on the duty-free list," adding, "We assess that uncertainty over the U.S. business environment has been resolved."
Hunterase, a treatment for Hunter syndrome, is also targeting overseas markets. Hunter syndrome is a rare disease in which an enzyme deficiency causes a protruding forehead and deformities. GC Biopharma posted 81.6 billion won in first-quarter prescription drug sales, including Hunterase and the arthritis treatment Shinbaro.
Vaccines that prevent diseases such as influenza and chickenpox are also contributing to results. GC Biopharma recorded 56.8 billion won in first-quarter vaccine sales, and 32.4 billion won in sales of over-the-counter medicines and healthcare.