HK inno.N is on the verge of achieving 1 trillion won in annual revenue. That is thanks to steadily rising prescriptions for its flagship product, the gastroesophageal reflux disease treatment "K-CAB."
By contrast, the hangover remedy "Condition" has not recovered sales to pre-COVID-19 levels. As more people drink alone, demand for hangover remedies that were mainly consumed at company dinners and gatherings has not bounced back as before.
According to the Financial Supervisory Service's electronic disclosure system on the 21st, Condition's sales fell from 85.4 billion won in 2018 to 59.3 billion won last year. Cumulative sales for the third quarter this year were 37.5 billion won, and at the current pace, annual revenue is likely to decline further from last year.
For Condition to regain its past peak, many challenges remain. Competition in the hangover remedy market is intensifying as it expands beyond liquid products to a variety of forms, including jellies, pills, and films.
HK inno.N is looking for a recovery in demand centered on the year-end company dinner season. A company official said, "We launched 'Condition Zero Sparkling' in the first half of this year, and we are also developing a new stick-type product with a new flavor."
HK inno.N's cumulative sales for the third quarter this year were 771.3 billion won, and it is expected to surpass 1 trillion won in annual revenue without difficulty. Operating profit was 70.8 billion won, with both sales and operating profit up 17% and 11%, respectively, from a year earlier. Of that, the gastroesophageal reflux disease treatment K-CAB accounted for 143.1 billion won, or 19% of total sales.
K-CAB, launched in 2019, is the nation's 30th new drug. It suppresses gastric acid secretion, delivers a fast effect, and is convenient to take, earning it the moniker "third-generation gastrointestinal drug." The company is currently pushing overseas expansion with U.S. Food and Drug Administration (FDA) approval as its goal.
In the U.S. market, "Voquezna" by Japan's Takeda Pharmaceutical is cited as a competitor. Voquezna holds patent exclusivity in the United States until 2032, making FDA applications for generics difficult until then. The industry believes that if K-CAB gains a foothold in the market during this period, it could secure a certain advantage in competition with Voquezna.
Lee Myeong-seon, an analyst at DB Financial Investment, said, "As Voquezna prescriptions increase, interest in the related drug market in the United States is also growing."
Kwon Hae-sun, an analyst at EUGENE INVESTMENT & SECURITIES, projected, "If U.S. partner Sebela files K-CAB with the FDA within the year, full-scale commercialization could be possible starting in 2027."
With K-CAB accounting for one-fifth of total sales, diversifying the product portfolio is also cited as an essential task.
HK inno.N is developing an atopy treatment that both humans and animals can use, and the obesity drug candidate "Ecnoglutide," introduced from Chinese biotech company Sciwind Biosciences, is in phase 3 clinical trials in Korea. The drug has shown an effect of maintaining weight even seven weeks after discontinuation, earning evaluations that it can reduce the yo-yo effect.