[5-Year Botox War] US ITC Rules in Favor of Medytox... "Daewoong Pharmaceutical Infringed Trade Secrets" (Update)

[Asia Economy Reporter Cho Hyun-ui] The U.S. International Trade Commission (ITC) ruled in favor of Medytox on the 6th (local time) in the ongoing five-year dispute over the origin of botulinum toxin (Botox) strains with Daewoong Pharmaceutical.

On the same day, the ITC stated, "Daewoong Pharmaceutical infringed on Medytox's trade secrets," and issued a preliminary ruling to ban imports of Daewoong Pharmaceutical's 'Nabota' for 10 years. The final ruling is scheduled for November, but since preliminary rulings are rarely overturned, this decision is expected to determine the fate of both companies.

The 'Botox war' between Medytox and Daewoong Pharmaceutical began in 2016. Medytox claimed that Daewoong Pharmaceutical stole its strain when launching the wrinkle improvement product 'Nabota.' Medytox filed a civil lawsuit in October 2017 and sued Daewoong Pharmaceutical and Evolus, the U.S. distributor of Nabota, at the U.S. ITC in January last year.

With the ITC ruling in favor of Medytox, Daewoong Pharmaceutical's growth engine, the Nabota business, is expected to suffer a blow. The Ministry of SMEs and Startups may also resume administrative investigations into the origin of Daewoong Pharmaceutical's strain. Furthermore, if Medytox demands investigations into the strain origins of other domestic companies, the entire domestic botulinum toxin industry could be significantly affected.