[Market Focus] Kolon TissueGene Shares Jump Over 6% on "Therapy Value Reassessment"

The share price of Kolon TissueGene surged by more than 6%. There are also forecasts that the stock will rise further, as the value of Kolon TissueGene’s therapy is now considered higher than before.

As of 10:57 a.m. on January 27, Kolon TissueGene was trading at 996,000 won, up 57,000 won (6.07%) from the previous session.

Korea Investment & Securities announced on this day that it had recalculated the U.S. wholesale price of TG-C, Kolon TissueGene’s cell and gene therapy for knee osteoarthritis, which had previously been estimated conservatively, and raised its target price by 13% to 1.7 million won.

Research analysts Haejoo Wi and Dayong Lee from Korea Investment & Securities stated, “We have raised the valuation of TG-C in the U.S. by 15% to 9.9 trillion won, and adjusted the wholesale price for the first and second year after launch to $30,000 (about 40 million won), higher than the previous estimate of $15,000 to $28,000. Considering that the estimated price of Medipost’s ‘Cartistem’ for severe knee osteoarthritis, which is about to be commercialized in Japan, is 30 million won, and Vericel’s autologous cartilage cell implant ‘MACI’ is sold for up to $40,000 in the U.S., the pricing of TG-C is reasonable.”

They further explained, “The unique value of TG-C is reflected in the fact that drug prices in the U.S. are 2.5 times higher than those in OECD countries, and that TG-C is the only therapy that reduces the frequency of artificial joint surgery by maintaining efficacy for more than two years with a single injection.”

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