[Click e-Stock] GC Biopharma's Global Drug Pipeline Value in Focus... Target Price Raised

U.S. Sales Growth Viewed Positively

Samsung Securities maintained its “Buy (BUY)” rating on GC Biopharma on November 3, citing expanding U.S. sales of its blood product Aliglo and the establishment of a mid- to long-term growth driver through partnerships with global pharmaceutical companies. It raised its target price to 200,000 won from 190,000 won.

According to Samsung Securities, GC Biopharma posted consolidated revenue of 522.1 billion won and operating profit of 49.2 billion won in the third quarter of 2026. Revenue fell 14.3% from the same period a year earlier, while operating profit rose 68.5%. Compared with the previous quarter, revenue and operating profit increased by 24.0% and 2,746%, respectively.

Seo Geunhee, a researcher at Samsung Securities, said, “Despite a decline in sales of the COVID-19 treatment Paxlovid, the start of the peak flu vaccine season and expanded U.S. sales of Aliglo drove an improvement in results. Profitability also improved as high-margin products made up a larger share of sales.”

Aliglo’s growth was particularly notable. Third-quarter sales of Aliglo reached $46 million, up 77% from the same period a year earlier. Cumulative sales totaled $97 million, increasing the likelihood that the company will meet its annual target of $150 million. GC Biopharma is targeting Aliglo sales of more than $200 million in 2027, supported by greater penetration of the U.S. market. It also plans to expand its product portfolio by developing a subcutaneous (SC) formulation.

“In the short term, GC Biopharma is expected to grow earnings through Aliglo, while in the mid to long term, it could benefit from new drug commercialization through global partners and increased manufacturing revenue,” Seo said.

Collaboration with global pharmaceutical companies is also seen as a mid- to long-term growth driver. Seo said, “GC Biopharma is expected to receive additional milestone payments and sales royalties from Eli Lilly based on progress in the development and commercialization of a shingles vaccine. After commercialization, the company also plans to participate in the manufacturing of both active pharmaceutical ingredients and finished drugs, creating potential manufacturing revenue as global sales expand.”

GC-1134A (LA-GLA), a Fabry disease treatment licensed to BioMarin, is another pipeline candidate worth watching. Clinical development and commercialization are expected to proceed using BioMarin’s global development capabilities, with GC Biopharma expected to receive milestone payments at each development stage and sales royalties after the product launches. Samsung Securities forecast that an upfront payment of about 46.6 billion won under the Fabry disease treatment licensing agreement would be reflected in GC Biopharma’s fourth-quarter results.

“Even excluding the one-time upfront payment, it is worth noting the improvement in the company’s underlying earnings power, driven by Aliglo’s strong growth and expanded global sales of Hunterase,” Seo said.

This content was produced with the assistance of AI translation services.