A local court has rejected a petition made by Kolon Life Science to suspend the government's decision to revoke the sales approval of Invossa-K, its osteoarthritis genetic therapy.

"The ministry's measure is justifiable as the original permit was based on false reporting of a key ingredient," the Seoul Administrative Court said, during a hearing on Tuesday. "It is hard to accept the company's assertion that the ministry's actions resulted in unreasonable costs."

Also, if a suspension is cited, it may adversely affect people’s lives and health, the court added.

The company has made all-out efforts to obtain acceptance for the petition, given the effects it may cause on the U.S. clinical trial and the original lawsuit regarding the revocation of the treatment's sales approval.

The decision is likely to deal a blow to Kolon Life Science's suit against the Ministry of Food and Drug Safety to invalidate an administrative order to revoke the sales approval of Invossa, on which the court will make a ruling by the end of this month.

Amid a murky outlook, the company's shares maintained its fall to hit 16,100 won ($13) as of 11 a.m. Wednesday, falling 13.67 percent from Tuesday.