GCGC Biopharma(006280) said on the 31st that its operating profit on a consolidation basis for the second quarter was tentatively tallied at 1.7 billion won, down 93.8% from the same period a year earlier. Sales for the same period fell 15.8% to 421.2 billion won.
This earnings decline was largely due to the exclusion of GC Wellbeing from consolidation and the deferral of revenue recognition for seasonal high-margin items to the second half.
GC Biopharma on Mar. 31 sold its entire equity in GC Wellbeing, which it had held to improve its financial structure and secure funds for investment in core businesses, to GC(GC Corp.(005250)). As a result, with GC Wellbeing excluded from the consolidation scope, sales and operating profit decreased.
Also, sales of influenza vaccine bulk, which are typically recognized in the second quarter, were deferred to the third quarter. This was due to adjustments in production and supply schedules as the timeline to secure standard strains of circulating influenza designated by the World Health Organization (WHO) was delayed. The entire bulk volume was shipped in July and is expected to be reflected in third-quarter results.
Overseas sales of Hunterase, a high-margin treatment for Hunter syndrome, are also expected to be concentrated in the second half.
By contrast, ALYGLO® (aliglo), a blood-derived product administered to patients with immunodeficiency, continued its growth. Second-quarter sales were 40.5 billion won, up about 10% from the first quarter, and GC Biopharma projected it will reach this year's target sales of $150 million (about 214.6 billion won).
GC Biopharma's standalone institutional sector sales were ▲ plasma derivatives 138.4 billion won ▲ vaccines 55.2 billion won ▲ prescription drugs 86.5 billion won ▲ over-the-counter drugs and consumer healthcare 36.3 billion won.
Major consolidation subsidiary GC Cell(144510) posted sales of 41.6 billion won. It reduced its operating loss by more than 80% from the previous quarter and swung to a profit for the first time in about two years since 2024, recording a net profit of 2.2 billion won.
GC Cell said it achieved earnings improvement through revenue structure enhancement centered on core businesses such as laboratory testing services and management efficiency gains. In the second half, it plans to pursue top-line growth based on a stabilized profit base to maintain its annual improvement trend.
A GC Biopharma official said, "Second-quarter results fell short of market expectations due to temporary factors such as the postponement of vaccine bulk production schedules caused by external variables and the exclusion of a subsidiary from consolidation," and added, "Amid solid growth of ALYGLO, sales of high-profit items such as influenza vaccines and Hunterase will be fully reflected starting in the third quarter."