A Study to Determine the Safety and Efficacy of TG-C in Subjects with Kellgren and Lawrence Grade 2 or 3 OA of the Knee

Inclusion Criteria:

• Aged 40 or older

• BMI between 18.5 and 40

• KL Grade 2 or 3 knee OA

• OARSI Grade 1 or 2 medial JSN

• Pain >= 40 on VAS scale

• Written informed consent

• Using birth control

Exclusion Criteria:

• Knee symptoms that result in difficulty or inability to walk

• Knee effusion >2+

• Has Grade 3 OARSI JSN

• Has a score of 0 or >=5 on the cartilage feature of the WORMS at Screening

• MRI exam indicates fracture or tumor

• Has a positive result on RCR testing at Screening

• Has taken NSAIDS with 14 days of baseline

• Has taken steroidal anti-inflammatory medication within 2 months of baseline

• Chronic (>21 days) narcotic use

• Recent history (within 1 year) of drug or alcohol abuse

• Pregnant or lactating

• Has received injection to target knee within 2 months prior to study entry

• History of various disorders of the knee including but not limited to rheumatoidarthritis, psoriatic arthritis, autoimmune OA, chondrocalcinosis, gout,hemochromatosis, villonodular synovitis, or synovial chondromatosis

• Severe hip osteoarthritis ipsilateral to the target knee

• Ongoing infection disease including but not limited to HIV, Hepatitis B or C.

• Clinically significant congestive heart failure hepatic disease, kidney disease,adrenal insufficiency, acromegaly, uncontrolled hyper- or hypothyroidism, ornon-specified uncontrolled endocrine disorder

• Uncontrolled diabetes based on a HbA1c > 8% at screening