With the end of the’Botox dispute’ between Medytox and Daewoong Pharmaceutical, both sides can take care of’Sili’. According to the industry on the 20th, sales of Daewoong Pharmaceutical’s botulinum toxin drug’Nabota’ (export name Jubo) accounted for 2-3% of the company’s total sales. Earlier, the US International Trade Commission (ITC) issued an order to ban imports for 21 months after Daewoong Pharmaceutical had infringed the trade secret of Medytox’s botulinum strain manufacturing process in December of last year. With this agreement, the two companies returned to the state they had before a lawsuit was filed with the ITC committee, and Daewoong Pharmaceutical has completely resolved the risk of the botulinum toxin business in the US. Inventories of Nabota, owned by US partner Evolus, can also be sold. In addition, as there are no more litigations to proceed over the decision of the ITC committee, operating profit is expected to recover through extraordinary cost reduction. Daewoong Pharmaceutical cited the cost of ITC litigation against Medytox as the cause of the decline in operating profit last year. Daewoong Pharmaceutical said, “This agreement laid the foundation for the resumption of Nabota sales,” and said, “With Evolus, we will spur Nabota’s global market penetration.” Medytox, which faces various negative factors, such as a decline in market share in Korea and the cancellation of approval for botulinum products by the government, also took a breath from the agreement. Medytox has given Huzel the number one position in the domestic botulinum toxin formulation market since 2016, when the conflict with Daewoong Pharmaceutical began in earnest. In addition, several administrative lawsuits are in progress against the botulinum toxin drugs’Meditoxin’,’Inotox’, and’Coretox’ with the revoked disposition of the product license from the Ministry of Food and Drug Safety. According to the U.S. Securities and Exchange Commission (SEC), through this agreement, Ebolus pays $35 million (approximately 38 billion won) in a settlement between Medytox and Aller over two years, and also pays royalties on Nabota sales. Medytox will also hold 6762,652 newly issued Ebolus common stock. Accordingly, Medytox’s operating profit is expected to recover to some extent. Medytox’s cumulative operating loss in the third quarter of last year was 11.4 billion won, which was about 14.7 billion won in deficit compared to 3.3 billion won in the third quarter of the previous year. However, Daewoong Pharmaceutical is not included in the parties to the agreement, and domestic lawsuits will proceed as scheduled as this agreement does not affect the legal rights and proceedings between Medytox and Daewoong Pharmaceuticals in Korea and other countries. Medytox is continuing the court battle by filing a civil and criminal lawsuit with a domestic court in 2017, claiming that Daewoong Pharmaceutical has stolen its own botulinum strain and its trade secret manufacturing process. The day before, Medytox signed a three-party agreement with Allergan and Ebolus of the United States to resolve all intellectual property lawsuits, including ITC lawsuits against Daewoong Pharmaceutical’s sale of Nabota. Accordingly, the order to ban Nabota’s 21-month import ban and the appeal procedures of both Medytox and Daewoong Pharmaceuticals will no longer proceed. Reporter Kim Hyun-joo [email protected]
Photo = Yonhap News
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