Posts explosive growth in GCT CDMO business and strategic GCT investments
NANJING, China, Aug. 24, 2021 /PRNewswire/ — GenScript Biotech Corporation (HKEX: 1548.HK) (GenScript) today reported its first half 2021 financial results for the six months ended June 30. It also announced that the Group has expanded its presence in the gene and cell therapy (GCT) industry with aggressive investments.
In the first half of 2021, the Group maintained strong momentum across all business segments. Total revenue increased by 38% to USD 229.6 million, and gross profit increased by 28.1% to USD 138.6 million.
The Group’s non-cell therapy business revenue increased by 36.6% to USD 195.7 million, with gross profit of USD 104.7 million, a 23.0% YoY increase, including its GCT CDMO business’ historic breakthrough in explosive revenue growth. This built on the Group’s early investments in the field and advantages in plasmid and lentivirus R&D and manufacturing solutions. For the Group’s cell therapy business, revenue increased by 46.8% YoY to USD 33.9 million, benefitting from continued recognition of its successes and milestone investments.
As the world’s No. 1 gene synthesis supplier, GenScript has laid a strong technical foundation for its GCT business. As GenScript’s life science services and products business, biologics CDMO business, and cell therapy business are all achieving strong momentum, the Group’s is expanding its presence throughout the GCT value chain by investing aggressively.
In the first half of 2021, R&D expenses increased by 51.6% YoY to USD 175.1 million. The non-cell therapy business invested about 10% of its revenue in GMP facility construction and other infrastructure expansion. The cell therapy business spent USD154.5 million on R&D, a 52.1% YoY increase, with an investment focus on clinical studies of cilta-cel and manufacturing facilities that support the business’ ongoing clinical trials and future commercialization.
GenScript is ushering in the rise of GCT as the next biotech industry revolution, tapping into the huge potential of CRO and CDMO platforms. Over the next two to three years, the life science business and biologics CDMO business will increase their strategic investments into the field. This includes investments in GCT-related services, utilizing automation technology to upgrade production lines, and accelerate the launch of ongoing cell therapy products and R&D in new pipelines.