500 Billion Won Deal

Kolon Life Science has signed a technology export contract amounting to about 500 billion won (US$447 million) on Invossa, a cell-mediated gene therapy for degenerative osteoarthritis with Mitsubishi Tanabe Pharma.
Kolon Life Science has signed a technology export contract amounting to about 500 billion won (US$447 million) on Invossa, a cell-mediated gene therapy for degenerative osteoarthritis with Mitsubishi Tanabe Pharma.

 

Kolon Life Science announced on November 1 that the company signed a technology export contract amounting to about 500 billion won (US$447 million) on Invossa, a cell-mediated gene therapy for degenerative osteoarthritis with Mitsubishi Tanabe Pharma. The deal will allow Kolon Life Science to receive 27.3 billion won (US$24.4 million) in contract money and 471.6 billion won (422.6 million) in stage-by-stage technological fees for the drug’s clinical tests, permissions and commercialization in Japan. This agreement is the highest-ever single technology export by a Korean pharmaceutical company to a specific country. Additionally Kolon Life Science will received sales loyalties for ten years from 2022.   

Invossa is the world’s first cell-mediated gene drug for degenerative osteoarthritis and is now under a review of the Korea's Ministry of Food and Drug Safety for the final permission. It was found in clinical tests in Korea that one shot of the innovative drug gives a degenerative osteoarthritis patient pain relief and increased mobility for one year without surgery.  

Kolon Life Science expects that there will be no problem in the commercialization of the drug as the deal was sealed in the latter stage of the clinical test. This means that the Korean drug company will secure both 500 billion in technology export and loyalties.

Kolon Life Science will produce and supply the product while Mitsubishi Tanabe Pharma will conduct clinical trials and will receive the Japanese government’s permission with the exclusive right to the development and sales of the drug in Japan.  Mitsubishi Tanabe Pharma is a global pharmaceutical company that ranks in the top 50 drug companies in the world in terms of sales. The company tops the rheumatoid arthritis treatment market in Japan.

“As we successfully advanced into the Japanese market famous for its thorough quality management, the export of this technology to other countries will gain momentum in the future,” said Lee Woo-seok, president of Kolon Life Science.

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