April 25, 2024

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[THE INVESTOR] TissueGene, the US-based biopharmaceutical affiliate of Korea’s Kolon Group, is planning a stock market debut on the secondary KOSDAQ in November, hoping to raise up to 200 billion won (US$177 million).

The company, which develops regenerative therapies for the treatment of various orthopedic disorders, submitted an application for an initial public offering to the Korea Exchange on Sept. 8. 

Kolon holds a 31.16 percent stake in TissueGene.

TissueGene has set an indicative price range of 16,000 won to 27,000 won, which would help it raise between 120 billion won to 202.5 billion won.

The company is currently focusing on the development of Invossa, an injectable cell gene therapy for osteoarthritis, which will undergo phase 3 clinical trials next year in the US. It plans to start sales in the US market by 2023.

In Korea, the therapy will be commercialized in October following approval by the Ministry of Food and Drug Safety in July. The authorities only gave permission for use in pain relief and function improvement, which disappointed investors and patients who expected breakthrough improvements in joint structure.

The company said Invossa is expected to demonstrate regeneration of damaged cartilage during late-stage clinical studies in the US. It will use the IPO proceeds to fund the clinical programs for Invossa.

TissueGene will gauge demand for the share sale on Oct. 17-18 and plans to take investor orders on Oct. 23-24.

NH Investment and Securities is the lead manager while Korea Investment and Securities is helping arrange the deal.

By Park Han-na (hnpark@heraldcorp.com)