HK inno.N's K-CAB to get insurance benefits in China

South Korea’s 30th novel medicine K-CAB Tab (active ingredient: tegoprazan), a gastroesophageal reflux disease (GERD) treatment of HK inno.N, will receive insurance coverage in China.

According to industry sources on Thursday, K-CAB Tab was included in the National Reimbursement Drug List (NRDL) announced by China's National Healthcare Security Administration (NHSA) on the previous day, nine months after winning approval for sales.

The gastric acid inhibitor will be covered by medical insurance in China from March, opening the way for HK to get a bigger piece of the pie in the Chinese peptic ulcer drug market worth 4 trillion won ($3.2 billion).

K-CAB obtained marketing approval from Chinese health authorities for the indication of erosive esophagitis last April and HK's Chinese partner Shandong Luoxin Pharmaceutical launched it as a non-formulary drug under the trademarked name of Taixinzan, which means "help for great pleasure."

HK explained that it was selling the medicine in 10 out of 22 provinces as of the end of last year.

Once the medicine was added to NRDL, the drug will be prescribed in more provinces, HK said.

"If covered by insurance, K-CAB sales are expected to surge as it can enter the Chinese peptic ulcer drugs market valued at 4 trillion won," Lee Na-kyung, a researcher at Heungkuk Securities, forecast in a report last month.

Write to Jung-Eun Kim at likesmile@hankyung.com