GC Genome Expects Sixth Straight Quarter of Operating Profit Driven by US Pancreatic Cancer Diagnostic Push

Third-quarter operating profit projected at 1 billion won, with cumulative earnings expected to surpass last year's annual total.

ai-CANCERCH growth accelerates, achieving 87.5% sensitivity in early-stage (Stage 1 and 2) US pancreatic cancer detection.

Genomics analysis specialist GC Genome (340450) is approaching its third-quarter earnings release. Following record-high performance in the first half of the year, the company expects continued earnings growth driven by peak health-checkup season effects in the second half and the expansion of overseas businesses.

Market Times highlighted GC Genome's foundation for profitability and overseas growth potential in an August 11 article titled "GC Genome, US Liquid Biopsy Stocks Surge... Who is Next After Natera in K-Bio?" The stock, trading at 5,610 won at the time, surpassed 10,000 won in October before undergoing a correction and closing at 8,550 won on the 13th, marking a 52.4% gain over approximately three months.

The US early pancreatic cancer screening test highlighted at the time is also materializing its overseas growth strategy as recent clinical results are presented.

Anticipating Third-Quarter Profit Growth: Cumulative Earnings Set to Surpass Last Year's Annual Operating Profit

Last year, GC Genome successfully turned a profit with revenue of 31.5 billion won (+21.8%) and an operating profit of 1.2 billion won. In the first half of this year, it achieved revenue of 15.7 billion won (+7.5%) and an operating profit of 573 million won (+118.3%), extending its streak of operating profits to five consecutive quarters.

Korea Investment & Securities forecasted in an October 29 report that GC Genome's third-quarter revenue and operating profit would reach 10.4 billion won and 1 billion won, respectively. These figures represent year-on-year increases of 17.8% and 31.3%. The firm analyzed that the expansion of domestic testing medical institutions and entry into the Japanese market would drive earnings growth.

The key point of interest is whether this growth momentum will continue in the upcoming third-quarter earnings release. If it meets brokerage forecasts, the company will achieve its sixth consecutive quarter of operating profit while its cumulative third-quarter operating profit alone is expected to exceed last year's annual operating profit.

ai-CANCERCH Growth Accelerates: Challenging the US Pancreatic Cancer Diagnostics Market

The growth pillars for GC Genome are the non-invasive prenatal test "G-NIPT" and the artificial intelligence (AI)-based multi-cancer early screening test "ai-CANCERCH." ai-CANCERCH has been upgraded based on clinical validation data from approximately 8,500 individuals to screen for the presence of over 10 types of cancer, up from the previous six. The company is broadening its growth foundation by expanding into the corporate health checkup market and entering Japan.

The core of mid-to-long-term growth is the US early pancreatic cancer screening test, "PancSight." GC Genome is pursuing local development and commercialization through GC LabTech, a US-affiliated company in which it holds a 24.1% stake.

PancSight recorded a sensitivity of 93.7% and a specificity of 95.4% in US studies. Notably, its sensitivity reached 87.5% for Stage 1 and Stage 2 pancreatic cancer patients, for whom early detection is crucial.

GC Genome is pursuing local regulatory procedures, including an application for the US Food and Drug Administration's (FDA) Breakthrough Devices Program (BDD). Successful commercialization in the US market is also expected to generate royalty revenue through GC LabTech.

Having successfully turned a profit last year, GC Genome is adding the growth engine of overseas market expansion to the profit growth of its core business. Improvements in domestic testing business profitability, regulatory approval and insurance coverage for PancSight in the US, and progress in commercialization are expected to be the keys to a future corporate valuation re-rating.