HK Innoen Signs Agreement to Acquire Japanese Business Rights for New Drug K-CAB and Stake in Laqulilia

Business Rights Secured in Japan, the World's Third-Largest Market

On December 15, HK Innoen announced that it has acquired the Japanese business rights for the new gastroesophageal reflux disease drug "K-CAB" (active ingredient: tegoprazan) from Japanese drug development company Laqulilia, and has signed an agreement to acquire new shares of Laqulilia through a third-party allotment paid-in capital increase.

Through this agreement, HK Innoen has secured the rights to develop, manufacture, and sell K-CAB in the Japanese market, and has acquired 1,555,900 shares of Laqulilia, securing an additional 5.98% stake. This marks the second achievement following the new share acquisition agreement signed in March this year, bringing HK Innoen's total stake in Laqulilia to 15.95%, making it the largest shareholder.

HK Innoen Gastroesophageal Reflux Disease New Drug K-Cab Series. HK Innoen

Laqulilia is a drug development company established in 2008 by researchers formerly from Pfizer Japan. In 2010, Laqulilia transferred the material technology for the new gastroesophageal reflux disease drug "K-CAB" to HK Innoen. Currently, Laqulilia has a pipeline of 18 new drugs, including those in the fields of gastrointestinal diseases, pain, and oncology.

With this agreement, HK Innoen has now secured global business rights for K-CAB, covering the world's top three markets-the United States, China, and now Japan-further raising expectations for global growth.

The Japanese market for peptic ulcer medications is valued at approximately 2 trillion won (about 1.227 billion dollars), making it the world's third-largest market. While K-CAB has not yet been launched in Japan, this agreement paves the way for a full-scale market entry.

Kwack Dalwon, CEO of HK Innoen, stated, "This agreement will combine the research and development capabilities of both companies to strengthen our innovative new drug portfolio and further enhance K-CAB's competitiveness in the global market. We will continue to collaborate with Laqulilia on joint research for additional new drug pipelines and solidify our position in the global pharmaceutical market."

K-CAB, the new drug for gastroesophageal reflux disease, is the 30th new drug developed in South Korea by HK Innoen. Since its domestic launch in March 2019, it has achieved cumulative prescription sales of 902.2 billion won in South Korea alone as of November this year. Currently, K-CAB has been licensed or exported as a finished product to 54 countries, including South Korea, China, and the United States, and has been launched in 18 of these countries.