Cha Biotech차바이오텍, the nation's largest stem-cell drug pipeline, turned a profit in the first half of this year, three years after its equity spinoff from Cha Diostech in 2014, the company said Monday.
Cumulative sales for the first six months were 12 billion won ($10 million), up 33.1 percent, and cumulative operating profit, 1.1 billion won ($960,000).
On a consolidated basis, second-quarter sales came in at 91.4 billion won ($79 million), while operating profit and net profits were negative 4.7 billion won and 3.8 billion won, respectively, showing temporary setbacks, it said.
These are due mainly to the quality assurance fee (QAF) sales -- a grant-type program that the federal government pays to California hospitals providing health care services to low-income patients -- have yet to be reflected in the company’s sales, it said.
“Given the U.S. federal approval of the fourth QAF (36 months, 2014.01.01~2016.12.31) was decided in December 2014, the U.S. federal approval of the 5th QAF is expected to be selected this year, allowing us to make an optimistic performance forecasts," a company official said.
The company had been in deficit since the spinoff in 2014, but the bio-insurance business division showed significant growth to turn around its bottom lines this year, he added.
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