Prosecutors Conduct Search and Seizure at Kolon Headquarters Over 'Invossa Suspicion'

[Asia Economy Reporter Song Seung-yoon] The prosecution conducted a search and seizure at Kolon headquarters in connection with suspicions surrounding the gene therapy for osteoarthritis, Invossa K Injection (Invossa).

The Criminal Division 2 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Ji-sung) sent prosecutors and investigators to the management support office at Kolon headquarters in Gwacheon, Gyeonggi Province on the morning of the 6th to secure materials related to the listing of Kolon TissueGene. The prosecution had also conducted a search and seizure at Kolon headquarters in July last year.

The prosecution is investigating suspicions that Kolon manipulated the books by prematurely reflecting part of the technology export contract payment in the accounts to align the company value of its U.S. subsidiary Kolon TissueGene, which led the development of Invossa, with listing standards, and then listed it on KOSDAQ.

Invossa is an osteoarthritis gene therapy injection composed of two components: Component 1 containing human cartilage cells and Component 2 containing genetically transformed cells introduced with cartilage cell growth factor (TGF-β1). It was approved by the Ministry of Food and Drug Safety (MFDS) in 2017 as the first gene therapy in Korea. However, the approval was revoked after it was revealed that the genetically transformed cells in Component 2 were kidney cells.

[Image source=Yonhap News]

Since receiving product approval in July 2017 until distribution and sales were suspended in March this year, Invossa was administered 3,707 times. The prosecution believes that since Kolon deceived the MFDS to obtain approval by misrepresenting the main ingredient, fraud charges against patients who received Invossa injections are also applicable.

On the 24th of last month, the prosecution requested an arrest warrant for Lee Woo-seok, CEO of Kolon Life Science, on charges including fraud, but the court dismissed the request. Based on the materials secured this day, the prosecution is expected to decide whether to reapply for an arrest warrant for the CEO after conducting supplementary investigations.

The prosecution believes there is no problem proving Kolon's criminal charges as key personnel responsible for the development of Invossa and the listing of Kolon TissueGene have been arrested and sent to trial. Director of Clinical Development at Kolon Life Science, Cho (46), Head of Management Support Division Yang (51), and Chief Financial Officer (CFO) of Kolon TissueGene Kwon (50) are already in custody.

This content was produced with the assistance of AI translation services.