There are some who are quietly smiling at the government's drug price cuts. They are HK inno.N and JW Life Science, which produce infusion solutions (輸液).
Infusion solutions are divided into basic solutions and nutritional solutions. Basic solutions, which hospitals use as a necessity, were excluded from this round of drug price cuts. With the resolution of the doctor-government conflict added to this, the infusion industry is expecting a full-fledged improvement in earnings.
HK inno.N posted 37.1 billion won in infusion sales in the first quarter of this year, up about 11% from a year earlier. Basic solutions and others brought in 23.4 billion won, and nutritional solutions 13.7 billion won. Infusions accounted for more than 14% of total first-quarter sales (258.7 billion won), the second largest after the third-generation gastrointestinal drug K-CAB.
HK inno.N's infusion sales rose 16% from 122.1 billion won in 2024, when the doctor-government conflict was at its peak, to 141.7 billion won last year. The company currently produces infusions at its Osong plant in North Chungcheong and its Daeso plant. A HK inno.N official said, "In the first quarter, nutritional solutions in particular grew significantly year over year," and noted, "With the medical crisis easing, infusion sales are steadily increasing."
JW Life Science also produces infusion solutions. According to the securities market, JW Life Science's sales on a consolidation basis are projected at 273.9 billion won this year, up 6% from a year earlier. Its first-quarter results are also drawing expectations.
Infusions are considered a core business for the JW Group. JW Life Science supplies infusions to JW Pharmaceutical and JW Shinyak. JW Pharmaceutical supplies large general hospitals, and JW Shinyak supplies clinics. Overseas exports are handled by JW Holdings. JW Pharmaceutical posted 224.2 billion won in infusion sales last year, accounting for more than 29% of its total sales.
Infusions deliver fluids, electrolytes, and nutrients through intravenous injection. Basic solutions contain fluids and electrolytes such as calcium, sodium, and potassium. Nutritional solutions are mainly provided to patients who are fasting or immediately after surgery and contain glucose, amino acids, and lipids.
Infusions had been affected as inpatient and surgical volumes declined during the medical crisis. With residents returning in the second half of last year, the industry is looking for a full-fledged rebound starting this year. A JW Group official said, "During the doctor-government conflict, we diversified sales channels to clinics and other outlets, so revenue did not differ greatly," but added, "With the medical crisis easing, we expect on-the-ground operations to return to normal."
However, the recent Middle East situation is acting as a variable. Infusion bags, which hold the solutions, use naphtha, a petrochemical product, as a raw material. The industry says that because it is utilizing existing inventories, there is no immediate disruption to infusion production and supply.
A HK inno.N official said, "We are supplying infusions stably as before," adding, "However, we are adjusting excessive orders."
The JW Group said, "We are communicating with the government to ensure there is no disruption in infusion supply," and added, "For clinics, when excessive orders occur at JW Shinyak, we are partially restricting shipments."
The industry is watching whether the infusion sector, buoyed by drug price cuts and the resolution of the doctor-government conflict, can overcome the Middle East situation.