The Seoul-based company Kolon Group says the U.S. Food and Drug Administration has approved clinical tests for a degenerative arthritis drug from its U.S. subsidiary, TissueGene, Inc.

Kolon said it is the first-ever South Korean developed drug to get a green light for clinical tests in the United States.

The company explained that TissueGene-C is a cell-mediated drug for degenerative arthritis which can be injected directly into the knee to help regenerate damaged cartilage.

Kolon is planning to begin mass production of the drug in 2010 with an aim to develop its biotech business as its main growth engine.