Kolon TissueGene’s false disclosure case related to Invossa-K Inj

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Kolon TissueGene was founded on June 9, 1999 to develop osteoarthritis treatments using the Cell Gene Technology Platform.

 

Listed on KOSDAQ on November 6, 2017, Kolon TissueGene announced in its securities report that Invossa is the world's first gene therapy product that is developed having allogeneic chondrocytes as main component. In addition, the company announced that Invossa was undergoing clinical trials in the United States, was expected to sell as a new drug in 2023, and in that case, annual sales would be estimated about 681 billion won. Afterwards, Kolon TissueGene continued to notify investors of the above information through the business report repeatedly.

 

Thanks to this, Kolon TissueGene was recognized to be phenomenally competitive when it was listed on the KOSDAQ market with the issue price at 27,000 won in the public offering on October 26, 2017, despite operating losses of tens of billions. Even after that, the stock price maintained high, ranging from a low of 30,000 won to a high of 75,000 won.

 

However, the composition of Invossa was found to be 293 derived cells (fetal-derived cells), not allogeneic chondrocytes and shortly after this was revealed, Kolon Tissue Gene's stock price fell sharply to 10,000 won. As the developing company of Invossa, Kolon TissueGene must have been aware of this.

 

Consequently, this is false disclosure case that Kolon TissueGene, a developer and seller of this new medicine, had deceived the main ingredients of Invossa, which was the key issue for shareholders’ investment decision.

 

Hannuri, on behalf of the shareholders, filed a lawsuit against Kolon TissueGene and its related persons for false disclosures in securities registration, investment prospectus and business report.