The GC group accelerating its global market entry after exporting Alyglo to the U.S., seeking to expand its business to China and Vietnam.

In particular, it chose to cooperate with China's CR Pharmaceutical Group after selling its Chinese subsidiary, and the company is also seeking to enter Southeast Asia by collaborating with local companies in Vietnam.

#On the 19th, GC (Green Cross Holdings) announced that it would enter the Vietnamese healthcare market in cooperation with Phenikaa Group.

The plan is for GC Labs to build a diagnostic laboratory using the organization's long-standing know-how, and GC iMED, a comprehensive health checkup agency, to establish a premium health checkup center for the Vietnamese middle-and-upper class.

In addition, GC plans to expand into the Southeast Asian market after entering the Vietnamese healthcare market.

The entry into the Vietnamese market is particularly noteworthy because it demonstrates the company's plan for rapid global expansion following its entry into the U.S. market.

Along with the U.S. market, GC Biopharma is accelerating its expansion into markets such as China and Vietnam in cooperation with local companies.

The company obtained U.S. FDA's approval for its blood product Alyglo late last year.

Alyglo is a 10% immunoglobulin liquid for intravenous administration used for primary humoral immunodeficiency (PI), also known as congenital immunodeficiency.

In 2020, the company conducted a Phase III clinical trial in North America in patients with primary immunodeficiency and met the efficacy and safety endpoints in compliance with FDA guidelines, but due to delays in on-site inspections among others due to COVID-19, the company obtained approval late last year.

Since then, GC Biopharma has continued its efforts with its U.S. subsidiary to register the drug on the formulary and made its first shipment to the U.S. on the 8th of this month.

Along with this entry into the U.S. blood product market, GC has been expanding its global reach to China and other countries.

First of all, the GC Group sold its Chinese subsidiaries, including the Hong Kong subsidiary, and is seeking to enter the Chinese market in cooperation with local companies.

In fact, the company signed a stock purchase agreement (SPA) with CR Boya, a subsidiary of China’s state-owned CR Pharmaceutical Group, to sell all shares of its Hong Kong subsidiary.

In addition, the company entered into a separate Distribution Agreement with CR to distribute GC Biopharma-GC Wellbeing's main products in China.

In the process, GC secured approximately KRW 350 billion through the sale of 6 companies, including GC China, its wholly-owned subsidiary in China.

Through the agreements, GC plans to enhance its financial health and utilize the funds to make strategic investments for future businesses.

In addition, GC Biopharma is seeking to maximize the efficiency of its blood product production by exporting immunoglobulin, one of the main derivatives produced in the process of manufacturing its blood products, to the U.S., and albumin to China.

The company’s strategy is interpreted as an attempt to reorganize its business and focus on its strengths.

In other words, in addition to selling different products by country, the company is organizing its underperforming subsidiaries to increase efficiency while addressing concerns about the relationship between the U.S. and China.

Currently, the US is in the process of enacting the Biosecure Act, which aims to restrict Chinese biotech companies from operating in the US.

In this context, GC will continue to pursue business in the US through its subsidiaries, while targeting the Chinese markets through cooperation with local groups rather than entering the market on its own.

In addition, the company’s plan to expand cooperation with local companies in Vietnam is also interpreted as a strategy to reduce its risk of entering the Southeast Asian market.