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Tissuegene to increase R&D spending on Invossa clinical research in U.S.

Collected: 2017.10.24

Distributed: 2017.10.25

Source: Go Direct

Invossa

South Korea’s Kolon Life Science Inc. said Monday its U.S. subsidiary Tissuegene, Inc. has upped its R&D spending to 150 billion won ($133 million) on late-stage clinical research of Invossa, a cell-mediated gene therapy for degenerative arthritis. The investment amount is higher than its early target of 98 billion won by about 60 percent.

Tissuegene expects to raise nearly 200 billion won from its planned initial public offering (IPO) next month on the Kosdaq, Korea’s technology-laden stock market. Of the proceeds, 154.6 billion won will be put aside for on-going phase III studies (122.1 billion won), drug tests in expanded indications (32.1 billion won) and commercial development expenses (400 million won). The remainder will be used as working capital of the biotech company.

Tissuegene decided to expand its R&D investment to ensure solid growth of Invossa with successful clinical trials in the U.S., a company official said. The company’s IPO price was recently set in its highest price range, creating more room for increased capital expenditure.

Invossa is a novel drug proven effective in the inhibition of inflammation and injury treatment with an intra-articular injection of TGF beta-2 into the knee. Kolon is due to launch Invossa in Korea next month. Tissuegene owns commercial rights to the drug outside Asia.

But the drug caused a controversy over its efficacy in July when Korean health authorities recognized the drug’s effects in the improvement of knee pain and functions but rejected the company’s claim that the drug can revive damaged knee cartilage and fundamentally cure arthritis.

By Kim Hye-soon and Minu Kim

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