[Click eStock] "HK Innoen, Rapid Sales Growth of Esophageal Treatment ‘K-Cab’"

High Sales and Profit Growth from Sales Contract with Boryeong
FDA Product Approval Application in the US Expected by First Half of Next Year at the Latest
Target Stock Price Maintained at 70,000 Won Despite Price Drop

Sangsangin Securities maintained the target price of biotech company HK Innoen at 70,000 won on the 24th, which is about twice the current stock price. The sales growth of its main product, the gastroesophageal reflux disease treatment 'K-CAB (Tegoprazan),' is evaluated to be steep.

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

Researcher Ha Taegi of Sangsangin Securities stated in a report on the same day, "HK Innoen's scale and profits are significantly increasing due to the sales contract with the major pharmaceutical company Boryung," and "Operating profit this year is expected to reach 96 billion won, a 47% increase from last year."

Researcher Ha added, "The FDA approval application for K-CAB in the U.S. will be submitted as early as this year or by the first half of next year at the latest," and "There is a possibility of entering the European market by selecting a European partner this year."

He evaluated, "Currently, the price-to-earnings ratio (PER) has dropped to 13 times thanks to improved operating performance," and "Considering expectations for overseas market entry and sales expansion, the current stock price shows significantly increased undervaluation appeal."