Prosecutors investigating suspicions surrounding the osteoarthritis gene therapy Inbosakei (Inbosa) seized Kolon's headquarters for alleged listing fraud.

The prosecution seized the headquarters in July, the beginning of the investigation.

According to the legal prosecutor's office on the 6th, the 2nd Detective of the Seoul Central Prosecutor's Office (Geong-seong Kang, Prosecutor General) sent the prosecutors and investigators to the management support office of Kolon, Gwacheon, Gyeonggi-do in the morning to secure documents related to listing on Kolon Tissuejin.

The prosecution is investigating the suspicion of listing on the KOSDAQ after raising the company's value by adjusting the book value by reflecting a portion of the technology export contract of Kolon Tissuejin, a US subsidiary, which led Kolon's invoicing development, into accounting.

Inbosa is an osteoarthritis gene therapy injection that consists of 1 solution containing human chondrocytes and 2 fluids containing transformed cells with chondrocyte growth factor (TGF-β1).

In 2017, it was approved by KFDA as the first gene therapy product in Korea.

However, two of the transformed cells appeared as kidney cells, and the permission was revoked.

Invoir received 3,707 cases from 438 hospitals and clinics after its approval in July 2017 and until distribution and sales ceased due to ingredient controversy in March of this year.

The cost of one shot is $ 7 million.

The prosecution believes that as long as Kolon deceives the main ingredient and is approved by the Ministry of Food and Drug Administration, fraud is also fraudulent for patients who have been inoculated.

The prosecution filed a warrant for detention, including a fraud, against Lee Woo-suk (63), the CEO of Kolon Life Science, on the 24th of last month.

However, when the court dismissed the prosecution's request for a warrant of arrest on the 27th of the same month, the representative was once out of crisis.

The prosecution will decide whether or not to reclaim the arrest warrant for the representative through reinforcement investigation, such as analyzing the data obtained on the day.

Meanwhile, KOLON's Chief Executive Officer (CFO) and KOLON Life Sciences' Wool General Manager have already been charged with listing fraud.

They are alleged to have manipulated some of the down payment in accounting in order to match the assets or sales of TissueGine to the listing standards.