[Edaily Reporter KIM SAE-MI ] Chabiotech Co.,Ltd.(085660)maintained cumulative revenue in the 900 billion won range for the first three quarters of this year, but its operating loss doubled compared to the same period last year.

Chabiotech Co.,Ltd. announced on the 13th that its cumulative consolidated operating loss for the first three quarters of this year was 83.1 billion won, a 101.2% increase compared to the same period last year. During the same period, revenue decreased by 2.2% to 901.6 billion won, while the net loss fell by 83.3% year-over-year to 18.6 billion won.

For the third quarter alone, revenue was 255.5 billion won, a 19.8% decrease compared to the same period last year. The operating loss was 24.2 billion won, approximately three times higher than the 8.1 billion won recorded in the same period last year. The net loss also surged by 406.5%, rising from 9.2 billion won in the same period last year to 46.6 billion won.

The company explained that the operating loss reflected operating expenses from its global healthcare business and costs associated with the expansion of future growth businesses, such as AI-based digital healthcare. It noted that despite a decline in some revenue from the global healthcare business, cumulative revenue remained in the 900 billion won range due to growth in major domestic businesses and the consolidation of a new subsidiary.

Although the operating loss widened, the cumulative net loss narrowed. Cumulative gains from the disposal of investments in affiliates and joint ventures for the first three quarters of this year totaled 114.5 billion won, while gains from the disposal of assets held for sale amounted to 57.3 billion won. The company stated that improvements in non-operating income and expenses resulting from business portfolio restructuring and asset optimization contributed to the reduction in the net loss.

On a standalone basis, profitability improved. Cumulative revenue for the first three quarters of this year was 48.9 billion won, an 8.5% increase compared to the same period last year. The operating loss was 2.1 billion won, a 47.5% decrease from the 4.0 billion won loss recorded in the same period last year. Net income was 75.8 billion won, marking a return to profitability from the net loss of 30.1 billion won in the same period last year. This reflects the growth of key revenue-generating businesses, such as BioInsurance (BI), and profits resulting from corporate governance restructuring.

Major affiliates are expanding their contract development and manufacturing (CDMO) services for cell and gene therapies (CGT) and their AI-based digital healthcare businesses. Its U.S. subsidiary, Matica Biotechnology, has signed contracts with U.S. biotech companies such as Surgium Biosciences and Backdom. The company is also working to secure clients through the “K-FIH” (First-in-Human) program, which combines U.S. CGT manufacturing capabilities with South Korea’s clinical expertise.

Chabiotech Co.,Ltd. is pursuing diversification of its revenue streams by preparing to launch a stem cell storage service based on its existing umbilical cord blood business. In the research and development (R&D) sector, the company is proceeding with development of “CHAGE-201,” a treatment for idiopathic pulmonary fibrosis, with the goal of obtaining approval for a domestic Investigational New Drug (IND) application. To this end, it has been selected for a follow-up R&D project under the government’s “K-HERO Fostering Support Program” and is set to receive 3.2 billion won in funding over a period of three years and six months.