[Featured Stock] HK Innoen Falls on K-CAB US Value Downgrade Report

HK Innoen is experiencing a decline in early trading on the 27th following securities analysts' reports downgrading the value of K-CAB in the US market.

As of 9:29 AM, HK Innoen is trading on the KOSDAQ at 36,750 KRW, down 3,550 KRW (8.81%) from the previous close.

The stock opened at 39,800 KRW but saw increased selling pressure early in the session, widening the decline.

Korea Investment & Securities released a report estimating that the recent sharp drop in HK Innoen's stock price is due to the P-CAB Pharma issue raised in the US, leading to a downward revision of K-CAB's US value. The target price was lowered by 28.6% to 70,000 KRW, while maintaining a 'Buy' rating.

This target price downgrade reflects the potential contraction of the US P-CAB market. The AGA recognizes the comparative superior efficacy of vonoprazan in severe erosive esophagitis, its usefulness in necessary treatment, comparative advantage in Helicobacter pylori eradication therapy, and utility in hemorrhagic duodenal ulcers. However, due to a lack of long-term safety data and comparative results, it recommends restricting prescriptions for non-erosive and mild erosive esophagitis patients mainly to those who do not respond to proton pump inhibitors (PPIs).

Researcher Wi Haeju stated, "Following the AGA guidelines, we have downgraded K-CAB's US value to 501.3 billion KRW and lowered HK Innoen's target price by 28.6% to 70,000 KRW. However, separate from the US, the domestic P-CAB market is growing without pricing controversies, so there is no change in the business value of K-CAB and HK Innoen."