HK inno.N(195940) said on the 29th that it tallied an operating profit of 30 billion won in the second quarter this year, up 53.6% from the same period last year. Revenue for the same period rose 1.6% to 267.2 billion won.
The company cited broad-based growth in the institutional sector of prescription drugs (ETC), including the gastroesophageal reflux disease treatment "K-CAB," nutrition infusions, and cardiovascular products, as the driver of earnings growth.
HK inno.N's flagship product K-CAB posted 61.5 billion won in out-of-hospital prescriptions in the second quarter this year, up 15.4% from a year earlier. Cumulative prescriptions in the first half reached 120 billion won, up 14.6% from last year.
Second-quarter K-CAB sales were tallied at 49.3 billion won. Domestic sales were 44.8 billion won, down 6.9% from a year earlier, but this was a temporary effect from a change in accounting treatment for volume-linked price rebates. Export sales were 4.5 billion won, up 337.3% from a year earlier.
In China, the local product name "Taixinzan" is covered by insurance for all three indications, expanding use. Accordingly, global royalty revenue also increased. K-CAB has entered 55 countries including Korea, has launched in 20, and is preparing launches in 4.
It is also pushing into the U.S. market. HK inno.N submitted a new drug application (NDA) to the U.S. Food and Drug Administration (FDA) in January this year and is aiming for approval in three indications: non-erosive gastroesophageal reflux disease, treatment of erosive esophagitis, and maintenance therapy. U.S. partner Sebela presented related phase 3 clinical data at Digestive Disease Week (DDW) in May.
The infusion business also continued to grow. Second-quarter infusion sales were 38.5 billion won, up 13.7% from a year earlier. In particular, total parenteral nutrition (TPN) recorded 14.3 billion won, up 15.4%, expanding its share of sales.
Cardiovascular product sales rose 4.7% to 72.1 billion won. The hyperlipidemia treatment "Lobazet" and Boryung's hypertension treatment "Kanarb" led growth.
In contrast, diabetes and kidney institutional sector sales fell 25.1% to 20.4 billion won. This was due to a base effect from the end of co-promotion of the diabetes treatment "Xigduo" with the U.K.'s AstraZeneca (AZ) late last year.
In the health and beauty (H&B) institutional sector, the hangover remedy "Condition" posted second-quarter sales of 14.2 billion won, up 7.9% from a year earlier. Despite a shrinking hangover-relief market, it maintained solid results by expanding market share.