The Market Grows, Distribution Costs Decrease... Why K-CAB Is Promising for Next Year

Q3 Prescription Performance Surpasses 40 Billion Won
20% Growth Expected Due to Increase in Gastroesophageal Reflux Disease Patients
Termination of Joint Sales Contract with Chong Kun Dang
Cost Reduction Expected with New Contract and In-House Distribution

All products of K-CAB, a new drug for gastroesophageal reflux disease by HK inno.N. Photo provided by HK inno.N.

HK Innoen's new drug for gastroesophageal reflux disease, 'K-CAB,' recorded prescription sales of 40.1 billion KRW in the third quarter. The cumulative sales for the third quarter reached 114.1 billion KRW. Considering the health checkup season in the fourth quarter, HK Innoen forecasts the annual prescription sales of K-CAB for this year to reach around 160 billion KRW, which is more than a 20% increase compared to last year's 132.1 billion KRW.

K-CAB is the world's second launched potassium-competitive acid blocker (P-CAB) for the treatment of gastroesophageal reflux disease. Since its domestic launch in March 2019, it has maintained the number one position in the peptic ulcer drug market for three consecutive years. The proton pump inhibitors (PPIs), which were mainly prescribed as conventional treatments for gastroesophageal reflux disease, must be taken 30 minutes before meals and still allow acid secretion during sleep, causing nighttime heartburn symptoms. In contrast, P-CAB drugs like K-CAB can be taken regardless of meal times and have relatively faster efficacy.

In the domestic peptic ulcer drug market, the market share of P-CABs rose to 17.6% as of the third quarter this year, up 4.4 percentage points from 13.2% in the same period last year. The market share, which was 3% in the first year of launch in 2019, has increased about fivefold in four years.

Successes overseas are also continuing. Last month, K-CAB was officially launched in Peru, completing entry into a total of 35 countries through technology exports or finished product exports. Among these, product approval and launch have been completed in eight countries including South Korea, China, the Philippines, Mongolia, Mexico, Indonesia, Singapore, and Peru. In five countries including Vietnam, marketing authorization applications have been submitted and results are awaited.

In the Chinese market, HK Innoen partnered with Luoxin to launch the Chinese version of K-CAB called 'Taixinzan.' They have completed listing on the National Reimbursement Drug List (NRDL), creating a favorable environment for increased prescriptions. In the United States, together with partner Sebela, they are conducting Phase 3 clinical trials for the treatment and maintenance of erosive gastroesophageal reflux disease and for non-erosive gastroesophageal reflux disease as indications. The company expects to apply for product approval in the U.S. market as early as next year.

Domestic sales profitability is also expected to improve. The domestic co-promotion contract for K-CAB between HK Innoen and Chong Kun Dang expires this year. Under the current arrangement, HK Innoen supplies K-CAB to Chong Kun Dang, which then distributes it to hospitals and clinics using its own distribution network, earning a kind of sales commission in the process. From next year, changes in the sales method are expected to reduce distribution costs and improve profitability.

It is reported that several pharmaceutical companies have proposed sales-related contracts for K-CAB to HK Innoen, while Chong Kun Dang, which had the previous contract, is also negotiating for renewal. Chong Kun Dang co-promotes K-CAB tablets in 50 mg and 25 mg strengths with HK Innoen. Some speculate the possibility of HK Innoen directly distributing K-CAB, which would reduce sales commissions accordingly. HK Innoen is already conducting independent sales and marketing activities for the orally disintegrating tablet formulation of K-CAB.

An HK Innoen official stated, "We have received proposals from several pharmaceutical companies including Chong Kun Dang and are considering various options such as sole distribution," adding, "We will proceed in a way that enhances profitability while ensuring continuous growth of K-CAB."

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