Boryung and HK inno.N aim to achieve annual sales of 1 trillion KRW, the benchmark for ‘major companies’ in the domestic pharmaceutical and bio industry. While continuously adding growth drivers and maintaining sales growth, they have recently formed an alliance by jointly selling major products.
Boryung's hypertension treatment drug 'Kanab' product line (left) and HK Innoen's gastroesophageal reflux disease treatment drug 'K-CAB' product line [Photo by Boryung]
Boryung recently announced that it recorded sales of 859.6 billion KRW last year. HK inno.N, which has not yet officially announced its performance, is estimated to have posted sales of 825.3 billion KRW last year. Securities firms expect that if the growth trend of both companies continues, Boryung will approach 1 trillion KRW in annual sales this year, and HK inno.N will do so around next year. Annual sales of 1 trillion KRW is a performance achieved by only nine companies in the domestic industry, including Samsung Biologics, Celltrion, Yuhan Corporation, and Chong Kun Dang. It is an indicator that firmly places them among the ‘Top 10’ major pharmaceutical companies.
The growth of both companies is driven by new drugs. Kanarb, a hypertension treatment developed by Boryung, led performance growth with an off-prescription amount of 169.7 billion KRW last year, a 12.9% increase compared to 2022. HK inno.N’s new drug for gastroesophageal reflux disease, K-CAB, also played a key role with an off-prescription amount of 158.2 billion KRW, growing 19.8% year-on-year.
At the end of last year, the two companies announced a collaboration to jointly sell these two drugs. HK inno.N, whose contract with its existing partner was about to expire, chose Boryung as its new partner, resulting in a prompt exchange. Boryung, which has strengths in chronic disease and oncology fields led by Kanarb, overcame the risk of lacking a suitable gastrointestinal drug lineup by partnering with HK inno.N. Meanwhile, HK inno.N succeeded in securing a major product in the hypertension field, filling a relatively weak spot in its portfolio.
K-CAB is a new drug expected to become the industry’s first ‘domestic global blockbuster drug.’ The company is accelerating market share growth and overseas expansion by leveraging the advantage that it can be taken anytime, unlike existing treatments. Geunhee Seo, a researcher at Samsung Securities, explained, “I estimate K-CAB’s sales this year to increase by 38% year-on-year to 160.4 billion KRW,” adding, “Momentum such as the European licensing contract for K-CAB, completion of Phase 3 clinical trials in the U.S., and regulatory approval applications remain valid.”
Both companies are intensifying this growth trend by strengthening their sales capabilities. Boryung is regarded as the ‘Midas touch’ in the oncology market. It secures a dominant market position by handling sales of newly launched generics or biosimilar drugs, and plays a significant role in restoring its former stature by managing domestic sales of original oncology drugs whose positions have been shaken. The company operates an ‘Onco’ division dedicated to oncology drug sales, assigning sales representatives exclusively to oncology products, which has proven effective.
In the paclitaxel oncology drug market, Boryung handled sales of the generic Genexol, raising its market share to 60%, but since last year, it has been selling the original drug Taxol. Taxol sales increased by 29% in the first half of last year under Boryung’s management. Additionally, in the treatment of neutropenia, a side effect of cancer therapy, Boryung grew the biosimilar Neulapec but has been handling sales of the original Neulasta since 2022, increasing sales by 20%. HK inno.N has also been focusing on securing new products to expand sales, recently collaborating on sales of AstraZeneca’s diabetes treatment Forxiga and its combination drugs Xigduo and Sidaphbia.
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