Development

Kolon's TG-C Phase III failure slows cell therapy push into knee osteoarthritis

Kolon TissueGene's first pivotal test of a cell and gene therapy for knee osteoarthritis has come back negative, complicating a development program that...

Kolon's TG-C Phase III failure slows cell therapy push into knee osteoarthritis

Kolon TissueGene said its Phase III ACTiVION-II trial of TissueGene-C osteoarthritis therapy (TG-C) in knee osteoarthritis failed to meet its co-primary endpoints, dealing a setback to one of the field’s more advanced regenerative medicine programs.

ACTiVION-II enrolled 531 patients with Kellgren–Lawrence Grade 2 or 3 knee osteoarthritis across 27 US sites and evaluated a single intra-articular injection of TG-C against placebo. The study did not show a statistically significant difference between the treatment and placebo groups in either co-primary endpoint: change from baseline in VAS pain score and WOMAC total score at Month 12.

None of the key secondary endpoints were met. Kolon TissueGene said it will continue analyzing the full dataset, but the topline results showed that TG-C did not improve pain or physical function compared with placebo over 12 months.

Treatment-emergent adverse events were comparable between the two groups in incidence, severity, and pattern. Most were Grade 1 or 2, and no new safety signals were reported.

TG-C is an allogeneic cell and gene therapy comprising genetically modified chondrocytes engineered to express TGF-β1, with the aim of promoting cartilage repair following a single intra-articular injection.

The therapy was approved in South Korea in 2017 under the trade name Invossa but withdrawn from the market in 2019 after a discrepancy was identified in the composition of its cell component. The US development program has proceeded separately under a Special Protocol Assessment agreement with the US FDA, supported by Phase II findings that suggested improvements in pain and mobility and potential effects on structural progression.

Attention now shifts to ACTiVION-I, a companion Phase III study also being conducted under the SPA agreement. Topline results are expected in October 2026, after which Kolon TissueGene said it will determine the program’s next steps.

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The ACTiVION-II failure comes amid growing late-stage activity in knee osteoarthritis. Organogenesis Holdings (Nasdaq: ORGO) has an FDA-accepted BLA for Amnuvx (azimplacel), a cryopreserved amniotic suspension allograft, with a PDUFA date in April 2027. Biosplice Therapeutics filed an NDA for the intra-articular CLK/DYRK inhibitor lorecivivint in January 2026, while MEDIPOST reported positive Phase III results in Japan for the stem cell therapy Cartistem in May 2026.

Although the programs use different mechanisms, each is seeking to address the lack of disease-modifying treatments for knee osteoarthritis. Existing therapies, including corticosteroid injections, hyaluronic acid products, and NSAIDs, are primarily used to control symptoms.

With TG-C representing Kolon TissueGene’s only disclosed clinical-stage asset, the ACTiVION-I readout will be central to determining whether the company can continue pursuing a regulatory path for the therapy.

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