[Click eStock] "HK Innoen, Stock Price Rebound Expected When Social Distancing Eases"

[Asia Economy Reporter Ji Yeon-jin] Korea Investment & Securities forecasted on the 3rd that HK inno.N's stock price could rebound if condition sales recover due to the easing of social distancing and profitability is restored through cost efficiency in health supplements and cosmetics.

Oh Eui-rim, a researcher at Korea Investment & Securities, said, "HK inno.N's recent stock price has fallen below the IPO price (59,000 KRW) due to last year's poor performance, which stems from K-CAB inventory adjustments, decreased condition sales caused by social distancing, and deteriorated profitability in the health supplement and cosmetics businesses," adding, "The global market entry of K-CAB, a drug for peptic ulcers, and the recovery of the health supplement and cosmetics (HB&B) business division's performance will be key to the stock price rebound."

K-CAB, a peptic ulcer drug launched by HK inno.N in March 2019, recorded a domestic market share of 11.5% in 2021 based on prescription amount, up 2.6 percentage points from the previous year. The annual prescription amount in 2021 was 109.6 billion KRW, a 44% increase from the previous year. K-CAB has a significant market preemption effect due to its faster launch compared to competing drugs. Currently, it has secured four indications, three of which are covered by insurance. With plans to add two more indications (maintenance therapy for gastroesophageal reflux disease and co-administration with NSAIDs) and launch new formulations (orally disintegrating tablets, 25mg formulation), its growth momentum is considered solid.

In addition to expanding the K-CAB pipeline, inno.N is strengthening its pipeline with treatments for non-alcoholic steatohepatitis (NASH, Phase 2), autoimmune diseases (such as atopic dermatitis, Phase 1), COVID-19 vaccines, and hand-foot-and-mouth disease vaccines. Recently, it signed a CDMO MOU with Abclon for blood cancer-targeting CAR-T therapies, expanding into the cell and gene therapy field.

Researcher Oh stated, "With the expansion of the new infusion solution plant, production volume increased from the previous 50 million bags annually to 105 million bags," adding, "Since the pre-expansion operating rate exceeded 100%, making it difficult to meet demand, the supply expansion through facility enlargement is expected to increase sales and secure a dominant market share in the infusion solution market."

This content was produced with the assistance of AI translation services.