Sales and operating profit projected to rise 19% and 32% year-on-year, respectively
HK inno.N is expected to post strong results for the third quarter, driven by the robust domestic and overseas performance of its gastroesophageal reflux disease (GERD) treatment K-CAB(tegoprazan). Improved profitability, combined with the company’s progress toward a U.S. New Drug Application (NDA) and a potential technology transfer deal in Europe, signals accelerating global expansion.
According to a report by Min-su Shin, analyst at Kiwoom Securities, released on Oct. 13, HK inno.N’s third-quarter revenue is forecast to rise 19.2% year-on-year to 273.6 billion won, while operating profit is expected to jump 32.6% to 29.5 billion won—both exceeding market consensus.
“The company’s pharmaceutical division is likely to record 23% growth, backed by the domestic and global sales of K-CAB, higher royalty income from China, and continued demand for the COVID-19 vaccine Comirnaty,” Shin noted.
Domestic sales of K-CAB are estimated at 46.5 billion won in the third quarter, up about 40% from a year earlier. Although more P-CAB (potassium-competitive acid blocker) drugs have entered the Korean market, analysts say K-CAB is expanding the overall segment by rapidly replacing the older PPI (proton pump inhibitor) category rather than competing within its own class. P-CABs address key limitations of PPIs, such as slow onset of action and short half-life.
Overseas performance is also accelerating. Exports of K-CAB finished products are projected to reach a record 4.6 billion won in the third quarter, up 87% year-on-year. Royalty income from the Chinese market, through local partner Taizhou Hanzhong Pharma, is expected to more than double.
The fourth quarter is set to mark a turning point for K-CAB’s global journey. HK inno.N plans to file an NDA with the U.S. Food and Drug Administration (FDA) through its partner, Sebela Pharmaceuticals, by the end of this year. Industry observers also expect the company to finalize a licensing agreement with a European partner soon. Sun-kyung Lee, analyst at SK Securities, commented, “The NDA submission will likely cover both erosive and non-erosive reflux disease indications, and active discussions are underway with a European partner for a potential technology transfer deal.”
Meanwhile, the global GERD treatment market is shifting from PPIs to P-CABs, enhancing HK inno.N’s growth potential. U.S.-based Phathom Pharmaceuticals is expanding prescriptions for vonoprazan, the first P-CAB approved in the U.S. Phathom’s annual sales are projected between USD 165 million and 175 million this year, more than triple its 2024 revenue of USD 55 million.
In Europe, anticipation for K-CAB’s licensing deal has grown following Sweden’s Cinclus Pharma’s agreement with Czech drugmaker Zentiva in May. The deal, valued at EUR 220 million (about KRW 340 billion), was signed even before Phase 3 results for erosive esophagitis were released. The agreement included an upfront and short-term milestone payment of EUR 18 million (about KRW 28 billion) and royalties estimated in the high-teens to 20% range.
Hae-joo Wi, analyst at Korea Investment & Securities, said, “Since tegoprazan has demonstrated efficacy not only in induction therapy for erosive and non-erosive GERD but also in maintenance therapy, HK inno.N could secure even more favorable terms than Cinclus.”
