Korea Exchange, South Korea’s stock market operator, said Oct. 11 it would defer its delisting decision for pharmaceutical firm Kolon TissueGene by 12 months.
Kolon TissueGene shares have been suspended from trading on the Kosdaq since late May. Kolon Group’s US gene therapy arm has been under scrutiny, as its knee osteoarthritis therapy Invossa’s ingredients were found to have been mislabeled in March.
But KRX’s Kosdaq Market Committee said in a disclosure it had “decided to place Kolon TissueGene under a 12-month probationary period for improvement” following a meeting that kicked off at 3 p.m.
KRX decides to delist troubled Kolon TissueGene
KRX unveils timeline to discuss Kolon TissueGene delisting
Kolon TissueGene is scheduled to present documents with plans for rehabilitation procedures and to have them reviewed by experts by October 2020. Kosdaq Market Committee will put the issue back on the table in 15 trading days after receiving the documents.
The decision came two months after KRX’s internal committee announced its decision to delist Kolon TissueGene and put its fate in the hands of the Kosdaq Market Committee.
Invossa had been sold in the Korean market since 2017 and was undergoing phase 3 trial in the US, until Korea’s Ministry of Food and Drug Safety scrapped its license for sales, as it was found to have used ingredients from kidney cells instead of cartilage cells.
By Son Ji-hyoung (email@example.com)