GC Pharma is forecast to report a second-quarter operating profit decline of 83% compared to the previous year, according to a consensus of 8 domestic securities firms. The company is expected to post revenue of 417.1 billion won and operating profit of 4.6 billion won for the quarter. The sharp decline is attributed to delayed revenue recognition for flu vaccines, Alyglo, and Hunter-ase, with flu vaccine original solution sales typically recognized in Q2 now pushed to Q3 due to the World Health Organization changing all three influenza strains. Analysts characterize this as a temporary gap rather than a loss of product competitiveness, maintaining annual performance forecasts while expecting recovery in the second half.
GC Pharma Q2 2026 Operating Profit Forecast Drops 83%
According to Yonhap Infomax Consensus (screen number 8031) compiled on the 29th, GC Pharma is projected to record consolidated revenue of 417.1 billion won and operating profit of 4.6 billion won for the second quarter. The figures represent a 16.63% decrease in revenue and an 82.94% decrease in operating profit compared to the same period last year. The consensus is based on performance forecasts from 8 major domestic securities firms that issued reports within the past month.
Revenue Recognition Delays for Flu Vaccines and Treatments
The World Health Organization changed all three influenza epidemic strains, causing delays in securing standard products by domestic designated institutions. This resulted in flu vaccine original solution sales, typically recognized in Q2, being deferred to Q3. Mirae Asset Securities estimated that over 20 billion won in expected sales shifted to the next quarter, leading to a projected 30% or more decrease in vaccine sales for Q2 compared to the previous year. Revenue from rare disease treatment Hunter-ase and high-margin congenital immunodeficiency treatment Alyglo is expected to concentrate in the second half.
Subsidiary Exclusion and R&D Cost Increases
GC Wellbeing, a subsidiary, was sold to GC Holdings and is excluded from consolidated results starting in Q2. This is estimated to result in approximately 50 billion won in revenue reduction per quarter. Research and development costs increased due to the company's mRNA COVID-19 vaccine candidate and varicella vaccine clinical trials, creating additional profitability pressure.
Alyglo and Hunter-ase Expected to Drive Second-Half Recovery
Alyglo's Phase 3 pediatric clinical trial for indication expansion is nearing completion. According to Kiwoom Securities, the Clinical Study Report (CSR) is expected to be produced around November, with indication expansion application planned for early next year and approval anticipated in the second half of next year. Hunter-ase is projected to generate over 30 billion won in overseas sales alone starting in Q4 as orders increase.
Qurevo Vaccine Stake Sale to Eli Lilly Generates 286.8 Billion Won
GC Pharma secured approximately 286.8 billion won in advance payment from selling its stake in affiliate Qurevo Vaccine to Eli Lilly this month. The amount is scheduled to be reflected in Q3 net income. A GC Pharma official stated that high-margin product revenue recognition originally scheduled for Q2 has been postponed to Q3, and Q3 will show higher sales compared to previous quarters due to revenue recognition for existing products and the Qurevo sale proceeds.
FAQ
Why did GC Pharma's Q2 operating profit forecast drop 83%?
The decline is attributed to delayed revenue recognition for flu vaccines, Alyglo, and Hunter-ase. The World Health Organization changed all three influenza strains, causing delays in securing standard products by domestic designated institutions, which pushed flu vaccine original solution sales from Q2 to Q3. Additionally, revenue from Hunter-ase and Alyglo is expected to concentrate in the second half.
What is GC Pharma's expected Q2 2026 revenue and operating profit?
According to a consensus of 8 domestic securities firms compiled by Yonhap Infomax, GC Pharma is forecast to post consolidated revenue of 417.1 billion won and operating profit of 4.6 billion won for the second quarter. This represents a 16.63% decrease in revenue and an 82.94% decrease in operating profit compared to the same period last year.
How much did GC Pharma receive from selling its Qurevo Vaccine stake?
GC Pharma secured approximately 286.8 billion won in advance payment from selling its stake in affiliate Qurevo Vaccine to Eli Lilly this month. The amount is scheduled to be reflected in third-quarter net income.
