After the Korea Exchange’s Corporate Review Committee decided to delist Kolon TissueGene, patients who used mislabeled gene therapy Invossa-K and shareholders of Kolon demanded a heartfelt apology of the company and compensation for damages.
Oh Kims, the law firm pursuing a lawsuit against Kolon TissueGene on behalf of Invossa-treated patients and minority shareholders of the company, said in a statement on Tuesday that Kolon should offer sincere apologies and due compensation.
Earlier on Monday, the KRX’s corporate review board voted in favor of delisting the company. Even though the Kosdaq Market Committee is to make the final decision, it is unlikely that Kolon TissueGene will be able to stay listed, Oh Kims said.
Oh Kims said if Kolon TissueGene had notified the mislabeling of Invossa’s main ingredient in the registration statement and the report for investors relations submitted for listing, and if the company had revealed that the main ingredient contained kidney-derived cells, the company would not have been able to win approval for going public in the first place.
“If the delisting is finalized, shareholders’ claim that they suffered losses due to TissueGene’s false disclosure will become stronger. Then, the value of TissueGene’s stocks will near zero, increasing the losses of shareholders,” Oh Kims said. “Minority shareholders, who have been hoping for TissuGene’s stay, are likely to file an additional lawsuit.”
However, TissueGene is seeking appeal procedures to buy time for a delay of delisting up to two years and trying to resuscitate Invossa and maintain the listing, Oh Kims argued.
“As the regulator confirmed that the company mislabeled the Invossa ingredient and it might have deliberately concealed it, the company should offer sincere apologies and reasonable compensation to victim patients and shareholders,” the law firm said. “We hope the company could show its integrity as a pharmaceutical company.”
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