Kolon signs arthritis drug deal for Japan marketing

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Kolon signs arthritis drug deal for Japan marketing

Kolon Life Science secured a 670 billion won ($594.7 million) deal to sell commercialization rights for its arthritis drug, Invossa, in Japan to global firm Mundipharma.

According to the local bio company on Monday, Kolon received a down payment of 30 billion won and will receive 637.7 billion won in total as sales milestones are hit. This means on top of the down payment, Kolon will receive addition payments when revenue in Japan reaches certain benchmarks. If Kolon reaches the last threshold, it will receive 637.7 billion won in total. Additionally, it will receive commission fees proportional to sales figures in Japan.

The deal will give Mundipharma rights to develop and commercialize Invossa in Japan. Invossa is a gene therapy drug for knee osteoarthritis, which has already started commercial sales in Korea and was approved phase three clinical tests in the United States. Kolon almost had a contract to Invossa in Japan, but discussions fell apart last year.

Kolon said Japan is estimated to have 31 million knee osteoarthritis patients, one-forth of patient worldwide suffering from the same disease.


By Song Kyoung-son
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