Variable for contract renewal for joint sales

HK inno.N

HK inno.N r, up 17% in about a year after the launch.

 

HK inno.N sold alone, no commission share, profitability improved as more sold Expiration of the joint sales contract with Chong Kun Dang at the end of the year, will it affect renewal negotiations?

 

HK inno.N K-Cab OD tablets accounted for 17.0% of the total prescription performance of this product.

 

HK inno.N's K-Cab joint sales contract with Chong Kun Dang is about to expire at the end of this year.

 

The increase in the proportion of prescriptions for OD tab, sold exclusively by HK inno.N, is expected to act as a variable in determining conditions such as the sales commission rate in the process of contract renewal negotiations between the two companies.

 

According to HK inno.N on the 2nd, the outpatient prescription amount of K-Cab in the second quarter was 38.4 billion won, up 20.0% from 32 billion in the same period last year.

 

Kcab is currently sold in the form of film-coated tablets and OD tabs.

 

Oral disintegrating tablets accounted for 16.3% of total prescription sales in the second quarter.

 

This means that Kc-ab OD tab's prescription sales in 2Q reached 6.3 billion.

 

HK inno.

 

N released the OD tab in May last year.

 

In 2Q09, the prescription portion of OD tabs was 4.2%.

 

Since then, it has rapidly expanded its share to 7.8% in the third quarter, 10.2% in the fourth quarter, 12.9% in the first quarter of this year, and 16.3% in the second quarter.

 

The proportion of prescriptions increased to 17.0% in June.

 

The prescription portion of OD tabs, which stood at 11.8% in January, increased by more than 5.0%p in half a year.

 

If this trend continues, it is expected to expand to more than 20% within the year.

 

OD tab is also contributing greatly to expanding the prescription record of all K-Cabs.

 

Since the second quarter of last year, prescriptions for film-coated tablets have been somewhat stagnant at 0.7 billion, 30.6 billion won, 32.2 billion won, 31.1 billion won, and 32.1 billion won.

 

Compared to the second quarter of last year, it increased only by 1.5 billion won (4.8%) in one year.

 

OD tab's sales increased significantly with 1.3 billion won, 2.6 billion won,3.7 billion won, 4.6 billion, and KRW6.3 billion.

 

Compared to the second quarter of last year, it increased by 4.9 billion won (366%) in one year.

 

It is an analysis that the OD tab is driving the overall growth of K-Cab prescriptions.

 

An increase in the prescription portion of the OD tab is directly linked to improving the OD tab's profitability.

 

In the case of existing film-coated tablets, they were jointly sold with Chong Kun Dang upon release.

 

In the pharmaceutical industry, it is known that HK in no.N pays Chong Kun Dang a sales commission in the upper 20% range.

 

On the other hand, OD tab is sold by OD tab alone.

 

As sales commissions are not paid separately, the profitability of HK inno.N improves as the number of prescriptions increases.

 

HK inno.N signed a joint sales contract with Chong Kun Dang in 2019.

 

The contract expires at the end of this year.

 

It is known that the two companies are currently discussing whether to renew the contract.

 

In the pharmaceutical and investment industries, it is highly likely that the two companies will sign an extension contract at the level of readjusting sales commission rates and incentives.

 

In this situation, the expansion of the prescription portion of the OD tab, sold exclusively by HK inno.N, is expected to have a significant impact on determining specific negotiation conditions.

 

As OD tab prescription performance expands, HK inno.N's bargaining power is expected to increase.

 

Unlike at the time of release, HK inno.N's sales network has been significantly expanded, and K-Cab awareness in front-line hospitals and clinics has also greatly improved.

 

In addition, it is an analysis that HK Innoen is proving its own sales power by producing good results in the single sale of OD tab.