Kolon TissueGene (950160) 🔎 In-depth
KOSDAQ · Price as of 2026-07-15 · Updated 2026-07-19
Kolon TissueGene is a clinical-stage biotech whose value is concentrated in a single gene therapy, 'TG-C' (formerly Invossa), which treats knee osteoarthritis with a single intra-articular injection. First-quarter 2026 revenue was ₩960 million, as product sales have not yet gotten underway in earnest, and most of the ₩68.2 billion net loss came from a derivative valuation loss on convertible bonds that grows as the share price rises (an accounting loss with no cash outflow). What stands out now is that a U.S. Phase 3 trial involving 1,066 patients has wrapped up and the key (topline) results are due in July 2026: a good result would open a large opportunity leading to approval of the world's first disease-modifying osteoarthritis drug (DMOAD), while a failure would shake the basis for the company's value—so this is a phase where success or failure is decided in a single step.
Core valuation metric
This stock's effective sub-sector is “Pharmaceuticals (profitable)” (Biotech & Pharmaceuticals), a type typically read first through P/E.
Established, profit-generating drugmakers earn fairly steady revenue from prescriptions and product sales, which makes their earnings reasonably predictable. That is why price-to-earnings (P/E) — the share price set against current net income — is the first lens here. It gives the clearest read on how the market is pricing the company relative to its actual earning power.
That said, meaningful revenue has yet to ramp, so pipeline value and cash runway may matter more than this metric.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 661.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 24.3%).
- The most recent full-year net result was a loss.
- Revenue fell 2.5% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 8.6% higher than a year earlier.
- ROE is -303.2% (total-net basis). It is below the sector average.
- Operating margin is -432.7%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
🔎 In-depth analysis
Kolon TissueGene is a clinical-stage biotech developing a single knee osteoarthritis gene therapy, 'TG-C' (marketed domestically as Invossa). TG-C mixes normal cartilage cells with cells engineered to secrete a protein involved in tissue regeneration (TGF-β1), injected once into the knee joint. It is not currently a company that makes money by selling a product in volume. As shown by 2025 revenue of ₩3.6 billion and first-quarter 2026 revenue of just ₩960 million, its revenue scale is very small. The company's real value rests not on current revenue but on the success of the U.S. TG-C Phase 3 trial and the potential for commercialization thereafter. For reference, this company is a U.S. corporation (a foreign entity) listed on the KOSDAQ.
The latest close is ₩77,900 and the market capitalization is ₩6.6 trillion. The price sits below its 20-day moving average (₩91,900) and below its 60-day moving average (₩102,070). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 38.1, a neutral level. The one-month change is -25.9%, the three-month change is -16.9%, and the position relative to the 52-week high is -43.9%. Relative strength versus the KOSDAQ is 85 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 85% of all stocks. Over the past three months it outpaced the index by 10.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Reading the financial metrics by the yardstick of a typical manufacturer is easily misleading. ROE (how much is earned on equity in a year) is -303% and the operating margin is -432%, both sharply negative. But these are numbers that come from a clinical-stage company with almost no revenue spending money on research and development. A substantial portion of the ₩135.4 billion net loss in 2025 and the ₩68.2 billion net loss in the first quarter of 2026 is an accounting loss arising from remeasuring the derivative element of convertible bonds (bonds that can be converted into shares) at fair value. This loss actually grows as the share price rises, and no cash actually flows out. The debt ratio (debt relative to equity) is high at 661% and the current ratio (assets that can be turned into cash right away versus debt due within a year) is low at 24%, both stemming from a capital structure in which clinical funding was raised mainly through convertible bonds. The P/E cannot be calculated because of the loss, and the P/B ratio (how many times net assets the share price represents) comes out at 155,800x because equity is nearly depleted, but this is effectively a meaningless value. This company is best viewed by the probability of clinical success and remaining cash, not by financial ratios.
This is a stage where growth is hard to discuss via revenue. 2025 revenue was ₩3.6 billion, down 2.5% year over year, and even over five years revenue has moved up and down in small amounts. First-quarter 2026 revenue was ₩960 million, up 8.6% from the prior-year period, but the absolute scale is small, so it is hard to read much into it. This company's real growth story lies not in the revenue curve but in the clinical progress of TG-C. The U.S. Phase 3 trial involves 1,066 patients, about 6.8 times the size of the domestic Phase 3 (156 patients). Under the company's official plan, it will announce key results in July 2026, and if the results are positive, apply for a biologics license (BLA) with the U.S. FDA in the first quarter of 2027. No confirmed official company revenue or profit forecast has been disclosed yet, so it is hard to project this year's profit on solid grounds.
Recent disclosures fall broadly into two branches. The first is litigation related to the Invossa affair. Over June and July 2026, several disclosures of lawsuit filings and rulings above a certain amount followed. Damage claims brought by shareholders are generally trending toward the company's side, so the assessment is that uncertainty in this area has eased somewhat. On the other hand, there are cases the company has lost in lawsuits brought by treated patients, so the burden related to compensation remains. The second is funding and accounting issues. In May 2026 a disclosure of a derivative transaction loss appeared; this is the valuation loss on the convertible bond's derivative element described earlier, an accounting loss with no cash outflow. The event that overshadows both branches is the U.S. Phase 3 topline results announcement scheduled for July.
This stock is an event-driven biotech whose success or failure rests on a single clinical result rather than on financial ratios. The strong conditions are clear. If the U.S. TG-C Phase 3 trial demonstrates improvement in pain and function and also shows structural improvement, it can aim for the rare status of the world's first disease-modifying osteoarthritis drug (DMOAD). The company also states that partnership discussions with large pharmaceutical firms are underway. The weak conditions are just as pronounced. If the clinical results fall short of expectations, the basis for the company's value is greatly shaken. With almost no revenue and depleted equity, the longer approval and commercialization are delayed, the greater the burden of raising additional funds. The Invossa-related litigation is also not entirely over. In sum, the July results announcement is an inflection point that could move sharply either up or down, and this is not the kind of stock whose cheapness or expensiveness can be discussed via profit or asset metrics.
🔎 Valuation vs peers Inconclusive
As a clinical-stage gene-therapy biotech whose profit and assets are not captured normally, comparing multiples such as P/E and P/B against peers is meaningless; it is classified as an event-driven stock whose value is viewed through the clinical success probability of a single pipeline.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kolon TissueGene | 0.00x | 155800.00x | -303.22% |
For this stock, the P/E cannot be calculated because of the loss, and the P/B comes out at 155,800x because equity is nearly depleted, but this is a meaningless value. A substantial portion of the net loss is a derivative valuation loss on convertible bonds that grows as the share price rises (an accounting loss with no cash outflow), so reading last year's and this year's loss size directly as a business slump is misleading. Real value rests on the clinical success probability of TG-C and remaining cash, so cheapness or expensiveness cannot be declared via profit or asset multiples. Until the U.S. Phase 3 topline results come out in July, an inconclusive stance is the accurate characterization.
Price history Close · MA20 · MA60
The latest close is ₩77,900 and the market capitalization is ₩6.6 trillion. The price sits below its 20-day moving average (₩91,900) and below its 60-day moving average (₩102,070). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 38.1, a neutral level. The one-month change is -25.9%, the three-month change is -16.9%, and the position relative to the 52-week high is -43.9%. Relative strength versus the KOSDAQ is 85 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 85% of all stocks. Over the past three months it outpaced the index by 10.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +10.33% / 6M +22.37% / 12M +80.83%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 155800.00x is above the sector median (1.06x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -303.2%, below the sector average (1.0%). The operating margin is -432.7%. The debt ratio is 661.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1,910 | $2,503 | $2,441 | -2.48% ↓ slower |
| Operating profit | -$10,569 | -$10,852 | -$10,562 | — |
| Net profit | -$8,879 | -$16,674 | -$91,119 | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2,354 | $4,925 | $1,910 | $2,503 | $2,441 |
| Operating profit | -$27,578 | -$8,491 | -$10,569 | -$10,852 | -$10,562 |
| Net profit | -$27,852 | -$5,800 | -$8,879 | -$16,674 | -$91,119 |
| Revenue CAGR | 4-yr avg 0.91% | ||||
Revenue fell 2.5% year over year (2023 ₩2,839,000 → 2024 ₩3,719,583 → 2025 ₩3,627,220), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.9%. The two-year revenue CAGR is 13.0%. In the most recent quarter (Q1 2026), revenue was 8.6% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 661.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 24.3%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 2.5% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-07-09UpdateCorrected disclosure regarding the filing/application of lawsuits above a certain amount. Reflects the ongoing situation of damage-compensation lawsuits related to the Invossa affair.In the short term, a factor of uncertainty related to compensation and provisions. That said, shareholder damage claims are generally proceeding in the company's favor, and the risk is easing somewhat. Source
- 2026-07-03UpdateDisclosure of rulings/decisions on lawsuits above a certain amount. Confirms that the progress and adjudication of Invossa-related lawsuits are ongoing.A factor whose ruling outcomes could determine compensation burden and market trust. Compared with the clinical-results event, the impact is limited. Source
- 2026-05-15FilingDisclosure of a derivative transaction loss. An accounting loss arising from remeasuring the derivative element of convertible bonds at fair value, an item with no cash outflow.Enlarges the net loss on the financial statements but is unrelated to actual cash flow. Because the loss grows as the share price rises, care is needed in interpreting the metrics. Source
- 2026-05-15EarningsSubmission of the first-quarter 2026 quarterly report. Revenue of ₩960 million (+8.6% year over year) and a quarterly net loss of ₩68.2 billion confirm the financial structure of a clinical-stage biotech.Revenue rose slightly, but its absolute scale is small, reaffirming that the clinical results are the core of real value. Source
- 2026-03-26FilingDisclosure of annual general meeting results. Governance-related agenda items such as the appointment of outside directors were processed.Of a governance-maintenance nature; the short-term earnings impact is limited. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-07-09Litigation disclosure (amended)
- 2026-07-03Litigation disclosure
- 2026-07-01Litigation disclosure (amended)
- 2026-06-23Litigation disclosure (amended)
- 2026-05-15Disclosure
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-03-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-27OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-25Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.