HK inno.N’s Q2 operating profit jumped thanks to K-CAB

HK inno.N posted a strong second-quarter performance, driven by robust growth in its specialty pharmaceutical sales led by K-CAB Tablets.

In a public disclosure Wednesday, HK inno.N said it achieved revenue of 219.3 billion won ($160.6 million) and an operating profit of 24.3 billion won in the second quarter of this year. These were up 7.3 percent and 58.9 percent year-on-year, respectively. The operating margin was 11.1 percent.

“Revenue growth was driven by strong growth in health and beauty (H&B) and specialty pharmaceuticals, including K-CAB, circulatory and diabetes medicines, and fluids,” HK inno.N said. “The profitability improvement of K-CAB continued, and higher sales of hangover drug Condition led to higher profits, resulting in a significant increase in operating profit.”

HK inno.N's specialty pharmaceuticals revenue for the second quarter was 193.8 billion won, up 7.7 percent year-on-year. During the same period, operating profit from specialty pharmaceuticals reached 22.4 billion won, up 50.3 percent. The operating margin was 11.5 percent.

Gastroesophageal reflux disease (GERD) drug K-CAB drove the company’s solid second-quarter performance. In the second quarter, outpatient prescription revenue for K-CAB increased 21.6 percent to 46.7 billion won. It was the company's strongest performance to date. Q2 sales of K-CAB were 37.1 billion won, an increase of 28.2 percent. K-CAB's GERD market share in the second quarter was 14.4 percent.

HK inno.N's fluid products also increased as the impact of the healthcare strike was minimized and growth continued to be driven by nutritional infusion products. Second-quarter sales of fluid products increased 6 percent to 29 billion won. Sales of the nutritional fluids reached 9 billion won, up 28.2 percent.

HK inno.N's sales of circulatory, diabetes, and kidney drugs in the second quarter reached 98.7 billion won, up 122.9 percent. The increase in cardiovascular, diabetes, and renal therapeutics sales was driven by the co-marketing of Boryung's hypertension drug Kanarb series this year.

In addition, the sales of AstraZeneca's hypertension drugs Xigduo, Forxiga, and Sidapvia, and the settlement of the National Immunization Program (NIP) following the exit from MSD's vaccine business, contributed to the sales increase.

HK inno.N's H&B segment recorded sales of 25.5 billion won in the second quarter, up 4.1 percent. Operating profit for the same period increased by 349.9 percent to 2 billion won. Second-quarter sales of HK inno,N’s flagship hangover cure, Condition, increased 7 percent to 16.4 billion won.