[Edaily Reporter Kim Hyung-il ] NH INVESTMENT & SECURITIES forecast that HK inno.N Corporation(195940)will see tangible global achievements, including the technology export of its gastroesophageal reflux disease (GERD) treatment, K-Cap, to Europe and the approval of a new drug in the U.S. The firm maintained its “Buy” rating and target price of 55,000 won, recommending the stock as a small-to-mid-cap pharmaceutical company poised for momentum through the end of this year and into next year.

On the 13th, Han Seung-yeon, an analyst at NH INVESTMENT & SECURITIES, cited the pharmaceutical sector’s underperformance and the company’s wait for the technology export of K-Cap to Europe and U.S. Food and Drug Administration (FDA) approval as the reasons behind HK inno.N Corporation’s sluggish stock performance—which has seen a 23% decline since the beginning of the year. However, she assessed that the upcoming global achievements are not yet fully reflected in the current stock price.

She projected that results from the technology export to Europe could be expected as early as this year. Considering that the total contract value for the competing drug, Linaprazan, was 340 billion won and the upper limit of royalties exceeded 20%, the analysis suggests that K-Cap could secure an even larger deal. In the U.S., she anticipated K-Cap’s new drug approval in January 2027 and estimated its value in the U.S. market at 600 billion won.

One analyst also highlighted HK inno.N Corporation’s valuation. The company’s enterprise value to EBITDA (EV/EBITDA) ratio stands at 8x, which is assessed as the lowest among pharmaceutical companies with new drug momentum. The analyst believes that as K-Cap’s global performance materializes, a revaluation of the company’s enterprise value is possible.

HK InnoN’s U.S. partner, Sebela Pharma, presented detailed clinical data on K-Cap at the American College of Gastroenterology (ACG) 2026 conference. In erosive esophagitis, its superiority over proton pump inhibitors (PPIs) was reaffirmed, and in non-erosive reflux disease (NERD), it demonstrated symptomatic improvement compared to a placebo. In particular, the Phase 3 clinical trial for erosive esophagitis received an Outstanding Poster Award, which is seen as providing a solid foundation for future expansion of actual prescriptions.

Third-quarter earnings are expected to fall short of market expectations due to sluggish K-Cap sales in South Korea and China. NH INVESTMENT & SECURITIES estimated that HK inno.N Corporation’s third-quarter revenue would reach 264.9 billion won, a 2% increase year-over-year, while operating profit would decline by 3% to 25.2 billion won.

Domestic sales of K-Cap are expected to reach 42.9 billion won. Compared to 41.2 billion won in the first quarter and 44.8 billion won in the second quarter, this figure falls short of the initially expected level of approximately 50 billion won. Analysts attributed this to inventory adjustments. On the other hand, based on UBIST—a pharmaceutical prescription volume statistics service—prescription volume was estimated at 58.5 billion won in the first quarter, 61.5 billion won in the second quarter, and 65.4 billion won in the third quarter, indicating sustained quarterly growth of 5–6%. The ratio of sales to prescription volume fell to 66% in the third quarter.

One analyst attributed the sluggish domestic sales of K-Cap to a temporary inventory issue. The analysis suggests that once the inventory issue is resolved, sales will recover in line with prescription trends.

Royalty revenue from K-Cap in China was estimated to be in the high 3 billion won range in the third quarter. This represents a decrease from approximately 4 billion won in the first quarter and 5 billion won in the second quarter. Consequently, the annual revenue estimate for China was lowered from 20 billion won to 17 billion won. The analyst explained that while third-quarter shipments were impacted by the Chinese government’s policy to promote advanced medical culture, implemented last June, a recovery trend has been observed since September.