GC Biopharma Group is approaching close to 5 trillion won in total assets, setting a milestone as the first traditional pharmaceutical group to reach the disclosure threshold for public reporting.
According to the electronic disclosure system on Jan. 11, the total assets of GC Biopharma Group, including six listed companies and 42 unlisted companies, amounted to 4.77 trillion won (US$3.63 billion). This marks a 6.4 percent increase compared to the year-end figures in 2022.
For listed companies, the calculations were based on the financial statements as of the end of September last year, while for unlisted companies, the most recently disclosed audit report figures were used. Seventeen unlisted companies, including GC Welfare and Green Cross Medis, for which financial indicators were not publicly available, were excluded. The assets of these companies represent a negligible portion within the group.
GC Biopharma Group’s total assets increased by 21.8 percent from 3.92 trillion won at the end of 2020 to the present, showcasing steady growth over the past three years. Notably, the group has achieved this expansion without significant facility investments in the 2020s, with total assets growing at an average annual rate of around 7 percent. The group’s flagship company, GC Biopharma, has consistently expanded its presence, and in 2021, the merger of Green Cross Cell and Green Cross Labcell, currently GC Cell, generated capital surplus exceeding 400 billion won.
With no immediate plans for large-scale facility investments, a significant surge in total assets is not anticipated in the near future for the group. The impediment to substantial growth in total assets is evident, as it is the only pharmaceutical company in the trillion-won club that experienced a decline in revenue last year.
However, GC Biopharma anticipates the accumulation of profits through the performance of ALYGLO, an intravenous 10 percent immunoglobulin formulation for use in primary humoral immunodeficiency disorders that obtained FDA approval on Dec. 18. The company expects this to be reflected in its financial performance starting from the second half of the year.
Once designated as a business group with total assets exceeding 5 trillion won subject to public disclosure, a company will be under the monitoring of the Fair Trade Commission for practices such as directing excessive business to affiliates, providing unjust support to subsidiaries, and engaging in improper transfers. The status of large enterprise group designations is publicly disclosed at the end of April each year.