Kolon’s osteoarthritis gene therapy drug’Invossa Kayju (Invossa)’. Kolon Life Science.
On the 19th, Kolon Life Science’s stock price soared to its upper limit at one time during the week and then sank. The reason for the ups and downs in stock prices was due to two mixed court rulings surrounding’Invossa Kayju (hereinafter referred to as Invossa). Invossa was the world’s first osteoarthritis treatment, released by Kolon Life Sciences in 2017, but was discontinued in March 2019 after using unauthorized ingredients.
On this day, the stock price of Kolon Life Science (28,850 won) surged 29.8% from the previous day at noon. At 11 am, Kolon Life Sciences executives accused of manipulating ingredients of Invossa were reported to have been acquitted at the first trial. The court in charge of the lawsuit (Part 25-3 of the Seoul Central District Court Criminal Agreement) found innocent about the suspicion of submitting false data, saying, “I doubt whether there is insufficient verification by the Ministry of Food and Drug Safety in the process of product approval by Invossa.”
However, the stock price, which rose to the upper limit, collapsed after just three hours. Again, the result of the judgment is the cause. Kolon Life Sciences lost in the first trial of an administrative lawsuit filed in objection to the disposition of the authorities who revoked the product license for Invossa. The judiciary (Seoul Administrative Court Administration Division 12) raised the defendant’s hand this time, saying, “There is no illegality in the cancellation of the item permission.” In fact, the issue of Invossa, which has held back Kolon Life Science’s performance and stock price for nearly two years, remains intact without finding any clues to resolve it.
In the end, Kolon Life Science’s stock price returned most of the gains on this day and closed at 21,900 won, up 2.1% from the previous day. The holding company Kolon’s stock price (22,250 won) also rose by more than 27% during the day and then fell 1.89%.
An official in the securities industry said, “Individual investors who bought at the ceiling price only looking at the innocence of Kolon executives and employees may have suffered losses,” he said. “Before the cancellation of Invossa’s license is resolved, attention should be paid to investment.” On this day, foreigners and institutions purchased a volume of Kolon Life Sciences worth 85.3 million won (net purchase of 89.3 million won).
Reporter Yeom Ji-hyun [email protected]