HK Innoen Soars with 'K-Cab', Annual Sales Reach 846.5 Billion Won... 10% Increase

HK Inno.N's gastroesophageal reflux disease treatment 'K-CAB'
[Photo by HK Inno.N]

[Asia Economy Reporter Chunhee Lee] HK inno.N succeeded in increasing its sales by 10% year-on-year last year, thanks to the strong performance of its gastroesophageal reflux disease treatment drug, 'K-CAB.'

HK inno.N announced on the 13th that its sales last year reached KRW 846.5217 billion, a 10.0% increase compared to the previous year. Operating profit rose by 4.4% to KRW 52.52567 billion, and net profit increased by 54.3% to KRW 38.17445 billion.

The company explained the sales growth by stating, "Sales of prescription drugs, including the new drug K-CAB, increased," and added, "There was also growth in beverage and beauty product sales due to the easing of COVID-19 and the launch of new products."

K-CAB rapidly captured the market with cumulative outpatient prescription sales of KRW 125.2 billion last year, a 14.2% increase from the previous year. K-CAB has diversified its formulations with low-dose (25 mg) and orally disintegrating tablets, and expanded its indications to include Helicobacter pylori eradication therapy, continuously pioneering the market. Milestone payments from China and the United States at various stages also positively impacted performance. In April last year, K-CAB was locally approved and launched as a non-reimbursed drug in China, and in September, clinical phase 3 trials began in the U.S., bringing in related milestone payments. So far, K-CAB has entered 35 countries overseas, and in China, it has been registered as an insurance-covered drug this year, accelerating market expansion.

Additionally, the hangover remedy Condition saw sales exceed KRW 60 billion last year as gatherings and events rapidly increased with the easing of COVID-19 restrictions, leading to a recovery in the hangover remedy market. The company launched a new product, 'Condition Stick.' Sales of cosmetics brand 'Beonez' and hair loss and scalp care brand 'ScalpMed' also increased.

Meanwhile, HK inno.N also announced the cancellation of treasury shares worth KRW 24.2 billion on the same day. This amount corresponds to about 2% of the total shares of HK inno.N. The shares to be canceled are 574,608 common shares of treasury stock purchased under a trust contract since February last year. With this cancellation, the total number of issued shares of HK inno.N will change from 28,904,499 to 28,329,891 shares. The scheduled cancellation date is the 20th of this month.

Kwack Dal-won, CEO of HK inno.N, said, "We decided to cancel treasury shares following the repurchase to enhance shareholder value," and added, "We will strive for company growth through active sales marketing and vigorous research and development activities, while exploring various shareholder return policies to become a company that progresses together with its shareholders."