SEOUL, Dec. 17 (Yonhap) — South Korea’s bourse operator on Thursday decided to grant the scandal-ridden drugmaker Kolon TissueGene Inc. a one-year period to improve its management.
In a meeting to decide whether to delist the drugmaker, the KOSDAQ market committee under the Korea Exchange (KRX) decided to give the company, an affiliate of Kolon Life Science, a one-year grace period to enhance its management.
Kolon TissueGene was listed on the secondary KOSDAQ market in 2017. The trading of Kolon TissueGene has been suspended since late May after the government revoked its permit to sell the gene therapy drug Invossa over mislabeling and false reporting of an ingredient.
Trading of Kolon TissueGene’s stocks will remain suspended during the period.
In July, Korea’s Ministry of Food and Drug Safety banned the production and sale of Invossa after it canceled the license for the drug made by Kolon Life Science.
Kolon Life Science acknowledged that a substance in the joint pain treatment drug had been mislabeled since 2003, with authorities arguing the company intentionally failed to disclose additional data it discovered on the problem before submitting the drug for approval.
Last month, the KRX turned down Kolon TissueGene’s proposed measures to improve its financial status, calling them “insufficient.” The firm appealed the decision, asking for a second review.
As of its last trading on May 28, Kolon TissueGene’s market cap stood at 489.6 billion won, with a 34.48 percent stake held by some 65,000 retail investors.’