Kolon Life Science announced on Nov. 19 that it has signed a technology export contract with multinational pharmaceutical company Mundipharma to launch Invossa-K, a cell gene therapy for osteoarthritis treatment developed by its subsidiary Kolon TissueGene, in Japan.
The total contract amount is 667.7 billion won (US$591.6 million), including an upfront payment of 30 billion won (US$26.65 million) and 637.7 million won (US$565 million) in milestone payments that are paid when each milestone is achieved. The contract sum amounts to 565% of the company’s most recent yearly sales of Invossa-K.
"We will pay 50 percent of the total technology export amount to Kolon TissueGene in accordane with the contract between the two firms," the company said.
Kolon Life Science is also entitled to royalties which will be paid based on net sales after commercialization in Japan.
Under the contract, Mundipharma has exclusive rights to research, develop, patent and commercialize Invossa-K in Japan. The contract period is 15 years after the launch of the product in Japan.
Kolon Life Science is hoping that its contract with Mundipharma will resolve concerns over its entry into Japan that arose following the cancellation of its previous export contract with a Japanese pharmaceutical company. Kolon Life Sciences announced in December last year that its 500 billion won Invossa export contract with Japan's Mitsubishi Tanabe Pharma had been canceled.
A Kolon Life Science official said, "The deal with Mundipharma is 170 billion won larger that our previous deal with Mitsubishi Tanabe."
The number of patients with osteoarthritis in the knee region is estimated at 31 million, about 25% of the total population.