Study to Determine the Efficacy and Safety of TG-C in Subjects with Kellgren/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

• 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 or biologic therapy medication within 2 monthsof 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 disorder, chondrocalcinosis, gout,hemochromatosis, villonodular synovitis, or synovial chondromatosis

• Severe hip osteoarthritis ipsilateral to the target knee

• Ongoing infectious disease including but not limited to HIV, HTLV-1, VSV-G, HBV, orHCV.

• 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.

• Documented active malignancy within the last 5 years except for basal cellcarcinoma, squamous cell carcinoma, and benign pigmented nevi.