On the 9th, the securities industry predicted that HK Inno.N’s performance would continue to grow, driven by the growth of its gastroesophageal reflux disease treatment, K-Cab, and expected royalty income from technology transfers. Despite the medical strike, the impact has been smaller than expected.
Park Jae-kyung, an analyst at Hana Securities, projected HK Inno.N’s Q2 sales to reach KRW 227.1 billion ($173 million), an 11.1% increase year-on-year, and operating profit to grow by 56.1% to KRW 23.9 billion ($18.2 million). He noted that sales would align with consensus, while operating profit would slightly exceed expectations.
K-Cab’s strong performance and the success of its prescription drugs were major factors. Specifically, K-Cab’s Q2 prescription amount increased by 21.4% year-on-year to KRW 46.6 billion ($35.5 million), with growth accelerating after collaboration with Boryung. Sales in the cardiovascular and diabetes/nephrology segments are expected to grow by 117.4% and 95%, reaching KRW 68.6 billion ($52.2 million) and KRW 25 billion ($19 million), respectively. The H&B (Health & Beauty) segment, which saw a slowdown in Q1, is also expected to grow by 2.3%, reaching KRW 25.1 billion ($19.1 million).
Royalty income from technology transfers is also expected to be reflected in Q2. Last month, HK Inno.N out-licensed a new autoimmune disease drug candidate, co-developed with IM Biologics and Y Biologics, to Navigator Medicine, a U.S. pharmaceutical company.
Shin Min-soo, an analyst at Kiwoom Securities, estimated, "On July 17, HK Inno.N announced the out-licensing of the bispecific antibody drug candidate 'IMB-101' for KRW 1.3 trillion ($990 million). Assuming a 10% share, HK Inno.N is expected to receive approximately KRW 3 billion ($2.3 million) in upfront payments."
There is also growing anticipation for K-Cab’s entry into the U.S. market. K-Cab is undergoing Phase 3 clinical trials in the U.S. for 'non-erosive reflux disease' and 'erosive reflux disease' indications through its partner. The non-erosive reflux disease trial concluded in late May, and the erosive reflux disease trial is expected to conclude by the end of this year.
Kim Jung-hyun, an analyst at Kyobo Securities, stated, "The results for non-erosive reflux disease will be announced in the second half, and the erosive reflux disease results will be released next year. If K-Cab proves effective in U.S. trials, expectations for its entry into the U.S. market will rise, increasing the company’s valuation." He added, "This is a company to watch in the second half of the year."
