Lee Kyu-ho, vice chairman of Kolon Group, who was appointed as an inside director of Kolon TissueGene in March this year, purchased 200 million won worth of Kolon TissueGene shares on the open market. Jeon Seung-ho, CEO of Kolon TissueGene, and Kim Jung-in, chief financial officer (CFO), also bought a combined 60 million won worth of shares.
Kolon TissueGene said on the 27th, through a "Report on Ownership Status of Specific Securities by Executives and Major Shareholders," that Vice Chairman Lee newly acquired 13,158 shares at 15,200 won each on a Korean Depositary Receipt (KDR) basis. The purchase amounted to approximately 200 million won, representing a 0.02% stake. This marks Lee's first purchase of Kolon TissueGene shares.
Along with this, CEO Jeon said he purchased 3,228 shares at an average price of 15,529 won. With this purchase, his holdings increased from 3,015 shares to 6,245 shares, with a purchase amount of approximately 50.12 million won. CFO Kim also bought 760 shares at an average price of 15,000 won, increasing his holdings from 25 shares to 785 shares. The purchase amount was around 11.4 million won. Kolon TissueGene listed the underlying shares issued by its U.S. subsidiary on the KOSDAQ in the form of KDRs. One underlying share corresponds to five KDRs.
Kolon TissueGene disclosed on the 20th of this month that its first Phase 3 clinical trial failed to meet the primary endpoint. The placebo group, which received saline solution, showed a 0.5-point greater improvement on the Visual Analog Scale (VAS) than the TG-C group. On the Western Ontario and McMaster Universities Osteoarthritis Index (WOMAC), TG-C showed a 1.07-point greater improvement than the saline group, but did not achieve statistical significance. The secondary endpoints, which examine joint recovery, were also all unmet.
On the same day, the company said in a shareholder letter issued under the names of co-CEOs Noh Moon-jong and Jeon Seung-ho, "We sincerely apologize for causing deep disappointment and concern with the announcement of the first results of the TG-C U.S. Phase 3 clinical trial." It stressed, "We will restore trust not through excuses or vague hopes, but through scientific data and responsible action."
The company added, "The only path to restoring lost trust is not grand words but definite results," and, "We will devote all our capabilities toward the goal of becoming the world's first cell and gene therapy for osteoarthritis."
