Increased Sales of K-CAB and Condition... HK Inno.N's 1Q Operating Profit Up 33% YoY

1Q Operating Profit 5.64 Billion KRW
Sales 184.9 Billion KRW...33% Increase YoY
Condition, Highest 1Q Sales Ever

HK Innoen posted improved results in the first quarter of this year, driven by the growth of the gastroesophageal reflux disease (GERD) drug 'K-CAB' and the hangover remedy 'Condition'.

HK Inno.N CI.
Photo by HK Inno.N

HK Innoen announced on the 2nd that its operating profit for the first quarter of this year was preliminarily estimated at 5.641 billion KRW, a 33.3% increase compared to the same period last year. During the same period, sales reached 184.892 billion KRW, up 2.6%. Net profit for the period was 2.944 billion KRW, down 60.2% from the same period last year.

By sector, sales of ethical pharmaceuticals (ETC) in the first quarter of this year amounted to 164.2 billion KRW, a 1.5% increase compared to the same period last year. Operating profit recorded 5.8 billion KRW, up 23.2% from the same period last year. The health, beauty, and beverage (HB&B) division posted sales of 20.7 billion KRW in the first quarter, growing 12.1% year-on-year, but recorded an operating loss of 200 million KRW.

The company explained that overall operating profit increased due to the growth of key products. At the same time, advertising expenses and research and development costs also increased. The decrease in net profit was attributed to the base effect of corporate tax refunds in the first quarter of last year.

Regarding the increase in sales, the company stated, "Sales of key products such as K-CAB, intravenous fluids, and Condition increased by double digits." On the other hand, sales in the vaccine and beauty sectors declined. The impact of withdrawing from the health functional food business was also reflected in the sales figures.

Specifically, K-CAB's prescription performance in the first quarter of this year was 35.7 billion KRW, a 15.2% increase compared to the same period last year. K-CAB is a potassium-competitive acid blocker (P-CAB) mechanism drug for treating gastroesophageal reflux disease. As of March, K-CAB's sales reached 12.7 billion KRW, capturing a 12% market share. HK Innoen plans to launch 'K-CAB Orodispersible Tablet 25mg,' a formulation that dissolves orally.

The hangover remedy Condition set a new record for the highest first-quarter sales ever. Sales of Condition in the first quarter of this year reached 15 billion KRW, a 42.6% increase compared to the same period last year. This is attributed to the revival of the hangover remedy market following the easing of COVID-19 quarantine measures. The Condition product line's five hangover remedy variants hold a market share of 42.3%.

The company also stated that intravenous fluids are expected to see double-digit growth. This is due to steady sales growth anticipated from the effects of the new factory. Other ethical pharmaceuticals (ETC) have also received positive market responses following the launch of a reduced formulation of the dyslipidemia treatment drug Lovazet.

An HK Innoen official explained, "Research and development expenses increased as manufacturing technology was transferred early at the request of K-CAB's U.S. partner," adding, "The HB&B division focused on new product launches, and the increase in advertising expenses was significant compared to initial sales volume."

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