Kolon Life Science said it has terminated the supply agreement of Invossa-K to Zhong JI 1 International Medical Group, which gave the latter exclusive rights to sell its osteoarthritis genetic therapy in Hong Kong and Macau.
The two companies signed the 16.9 billion won ($15.23 million) five-year contract for the medicine’s distribution in Hong Kong and Macau in 2018. The deal’s value accounted for 14.3 percent of Kolon Life Science’s sales in 2017.
“We decided to terminate the contract to eliminate uncertainty about contract maintenance and look for new business opportunities,” the Korean company said. “The suspended distribution and sales of Invossa-K in Korea and Zhong Ji’s lack of intention to maintain the contract also affected the termination of the contract.
Amid a recent series of bad news, the company’s shares maintained its downturn to 21,300 won as of 9 a.m. Thursday, falling 1.16 percent from Wednesday.