HK inno.N has recorded cumulative sales of around KRW770 billion($554 million) as of the third quarter this year, bringing the company closer than ever to achieving KRW1 trillion($720 million) in annual revenue for the first time in its history. With Boryung showing slower growth, HK inno.N could potentially move up in the industry’s sales rankings.
According to a filing with the Financial Supervisory Service on October 29, HK inno.N reported KRW260.8 billion($188 million) in sales and KRW25.9 billion($18.7 million) in operating profit for the third quarter. Sales rose 13.7% from KRW229.5 billion($165 million) a year earlier, while operating profit increased 16.4% from KRW22.2 billion($16 million). The operating margin stood at 9.9%, similar to 9.7% in the same period last year.
For the first nine months, cumulative sales reached KRW771.3 billion($556 million) and operating profit KRW70.8 billion($51 million), up 16.6% and 10.9% year-on-year, respectively.
HK inno.N posted annual sales of KRW897.1 billion($647 million) last year, ranking eighth among Korean pharmaceutical firms. Seven peers — including Yuhan Corp., GC Pharma, Chong Kun Dang Pharmaceutical, Kwang Dong Pharmaceutical, Hanmi Pharmaceutical, Daewoong Pharmaceutical, and Boryung — have already exceeded the KRW1 trillion($720 million) mark. Boryung joined the “KRW1 trillion club” for the first time last year with KRW1.017 trillion($734 million) in sales.
After recording KRW510.4 billion($368 million) in first-half sales, HK inno.N’s solid third-quarter performance pushed it closer to the milestone. If the company matches last year’s fourth-quarter sales of KRW235.8 billion($170 million), it will slightly exceed KRW1 trillion in annual revenue.
Boryung’s slower performance may also change their relative standings. In the first half, HK inno.N generated KRW510.4 billion($368 million) in sales, surpassing Boryung’s KRW492.1 billion($355 million). If Boryung fails to deliver strong results in the second half, it could lose its seventh-place ranking and fall short of maintaining KRW1 trillion in yearly sales.
HK inno.N’s performance was led by its ethical drug(ETC) business. The ETC division recorded KRW245.7 billion($177 million) in sales, up 19.1% from KRW206.3 billion($149 million) a year earlier. By product category, sales of K-CAB — its gastroesophageal reflux disease treatment — rose 11.4% to KRW46.4 billion($33 million). Cardiovascular drugs reached KRW69.8 billion($50 million, +7.9%), and infusion solutions KRW38.8 billion($28 million, +13.9%). However, the diabetes and renal segment declined 15.3% to KRW25.3 billion($18 million).
Profitability also improved. Operating profit from the ETC business rose 53.6% to KRW30.5 billion($22 million) from KRW19.9 billion($14 million) a year earlier. A company official said, “Increased sales and royalty income from K-CAB, together with the growth of infusion products, significantly boosted operating profit.”
However, the health and beauty(H&B) division remained a weak spot. The segment posted KRW15.1 billion($11 million) in sales for the quarter, down 34.7% year-on-year, and recorded an operating loss of KRW4.7 billion($3.4 million). Sales of the hangover remedy Condition dropped 23.1% to KRW10.4 billion($7.5 million), while Hutgaecha (oriental raisin water beverage) declined from KRW2.8 billion($2 million) to KRW1.6 billion($1.2 million).
