HK Innoen, 3Q Sales Up 9% YoY... "Keicap and IV Fluids Led Growth" (Comprehensive)

K-CAB Sales Increase by 20% Compared to Same Period Last Year
Injection Solutions Also Up 22%

HK Innoen achieved sales growth in the third quarter of this year, driven by the strong performance of the gastroesophageal reflux disease (GERD) new drug 'K-CAB' and its infusion products.

Overview of HK Inno.N Osong Plant. [Photo by HK Inno.N]

HK Innoen announced on the 30th that its individual-based sales for the third quarter of this year were preliminarily estimated at 215.592 billion KRW, an 8.8% increase compared to the same period last year. Operating profit for the same period rose by 0.7% to 22.423 billion KRW, while net profit decreased by 2.8% to 14.545 billion KRW.

The company explained that the increase in third-quarter sales was due to "an increase in domestic prescriptions of K-CAB alongside continued exports of finished products," and that "growth across the entire infusion product line (basic infusion, nutritional infusion, and special infusion) also accelerated."

The potassium-competitive acid blocker (P-CAB) class GERD treatment K-CAB led the sales increase with a 20.5% rise in prescriptions in the third quarter compared to the same period last year. K-CAB's prescription sales in the third quarter reached 40.1 billion KRW. The cumulative prescription sales up to the third quarter of this year also increased by 18.7% year-on-year to 114.1 billion KRW.

This growth trend for K-CAB is expected to continue until the end of this year. Since surpassing 13 billion KRW in prescriptions in May, steady growth has been observed. New formulations such as orally disintegrating tablets and low-dose (25 mg) products are gradually increasing in sales volume. An HK Innoen official stated, "Considering the health checkup season in the fourth quarter, the annual prescription sales are expected to reach approximately 160 billion KRW."

Steady overseas exports also positively impacted third-quarter results. K-CAB is currently available in 35 countries overseas, with approvals and launches completed in eight countries including Korea. K-CAB's export sales in the third quarter amounted to 1.6 billion KRW. Although this is somewhat lower than the 2.4 billion KRW recorded in the previous quarter, it shows continued growth compared to the 200 million KRW export sales in the first quarter. K-CAB was also listed on China's National Reimbursement Drug List (NRDL) in March, with royalties reflected in the third quarter.

The pace of expanding overseas markets is also accelerating. Countries where K-CAB's marketing authorization applications have been completed include Vietnam, Thailand, Malaysia, Chile, and Colombia. In the United States, phase 3 clinical trials are underway for the treatment and maintenance of erosive GERD and non-erosive GERD, with HK Innoen expecting to apply for U.S. marketing authorization sometime next year.

The balanced growth of the infusion product line also contributed to increased sales. HK Innoen currently produces basic infusion, nutritional infusion, and special infusion products. Sales of infusion products in the third quarter rose 21.6% year-on-year to 32.3 billion KRW. The company explained that if the current growth trend continues, the annual sales of infusion products this year are expected to achieve a mid-double-digit growth rate.

Other prescription drugs also showed growth, with continued sales increases for the dyslipidemia treatment 'Lovazet.' The start of sales of 'Xofluza,' an influenza treatment from Roche Korea, also contributed to the sales increase.

The health, beauty, and beverage (HB&B) division, represented by the hangover remedy 'Condition,' also showed solid performance. The Condition product line achieved quarterly sales of 15 billion KRW for six consecutive quarters. In particular, the market share of non-drink formulations such as 'Condition Stick' increased to the 40% range. Condition Stick recorded sales of 3.6 billion KRW in the third quarter, a 56.5% increase compared to the same period last year. The zero-calorie iced tea brand 'T-Log' also continued its growth trend.

Operating profit increased by 0.7% compared to the same period last year. An HK Innoen official explained, "The acceleration of growth in infusion products expanded the fixed cost leverage of the new infusion plant," and "the HB&B division also improved profitability due to reduced advertising and promotional expenses in the second half."

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