Industry insiders revealed on December 11th that HK inno.N is in the final phases of negotiations with Boryung Pharma to jointly market 'K-CAB,' the gastroesophageal reflux disease treatment featuring the active ingredient Tegoprazan.

K-CAB, recognized as South Korea's pioneering 'potassium-competitive acid blocker (P-CAB),' disrupted the dominance of proton pump inhibitors (PPIs) in treating gastroesophageal reflux disease and digestive ulcers. It swiftly entered the market, generating $91.3 million in retail prescription revenue, outshining competitors like Takeda Korea’s ‘Vocinti (active ingredient: Vonoprazan)' and secured specific indications, positioning itself as the sole market leader.

The recent shift in co-promotion partners stirred significant interest in the industry, particularly due to the competition between Boryung Pharma and ChongKunDang. HK inno.N's move hinted at possible aggressive sales strategies and renegotiations for the 2024 co-promotion contract, notably impacting the partnership with ChongKunDang.

Naturally, among various speculations, one potential outcome that emerged was the split between ChongKunDang and HK inno.N. ChongKunDang had joined forces with HK inno.N in January 2019, just six months after K-CAB's launch, forming a united front in sales. The industry regarded this collaboration a top player in related field sales, as a contract that made sense and garnered approval amidst industry discussions.

The outcome was indeed successful. K-CAB marked a growth, surpassing $91.8 million in retail prescription revenue in just three years. This success was seen as a clear victory in market penetration, especially in a situation where a preemptive effect was necessary to contain the growth of Daewoong Pharmaceutical's equivalent medication, ‘Fexuclue (active ingredient: Fexuprazan),' following behind.

However, amidst discussions this year, beginning with the earlier narrative of orally disintegrating tablets, there were speculations regarding the difficulty of ChongKunDang's re-contracting, particularly for new drugs due to high commissions and other factors. Once again, it's been suggested that HK inno.N might be more likely to independently sell the orally disintegrating tablets.

President Doo-Hyun Jang's leadership at Boryung Pharma, renowned for strategic initiatives and substantial growth, has drawn attention to the success of their involvement in the co-promotion deal. However, despite the impending contract finalization, Boryung Pharma faces the challenge of sustaining the revenue growth trajectory previously maintained by ChongKunDang. The reduced co-promotion fees, a key contract goal for HK inno.N, could lead to challenges if the revenue cannot be maintained to the previous commission levels without significant growth. As K-CAB's sales find a new partner in Boryung, focus shifts to the strategies they'll employ to surpass their prior growth plans.