Medi-Daewoong, US ITC Final Decision Postponed Again... "Simple Delay" vs "Error Review" (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] The U.S. International Trade Commission (ITC) has decided to postpone the final ruling on the botulinum strain dispute between Daewoong Pharmaceutical and Medytox to December 16 (local time). This is the second time the ITC has delayed the final ruling on this lawsuit.

According to the pharmaceutical industry on the 20th, the ITC postponed the final ruling on the lawsuit in which Medytox officially sued Daewoong Pharmaceutical for trade secret infringement from the previous day (local time) to next month 16th.

The ITC has not yet disclosed the reason for the delay. The industry views this as a schedule adjustment due to the local spread of the novel coronavirus (COVID-19).

Originally, the ITC was scheduled to make the final ruling on the lawsuit in which Medytox officially sued Daewoong Pharmaceutical for trade secret infringement on the 6th of this month, but on the 23rd of last month, it suddenly postponed it to the 19th of this month.

[Image source=Yonhap News]

Medytox and Daewoong Pharmaceutical have been in conflict since 2016 over the source of the botulinum strain, the raw material for botulinum toxin preparations commonly called 'Botox.' Medytox has claimed that Daewoong Pharmaceutical copied its botulinum strain, while Daewoong Pharmaceutical has firmly denied this, stating it is a different strain.

In a preliminary ruling last July, the ITC sided with Medytox, but the final ruling remains unpredictable. In the preliminary ruling, the ITC judged that Daewoong Pharmaceutical had misappropriated Medytox's botulinum strain and other trade secrets, but after Daewoong Pharmaceutical's objection was accepted, the ITC decided to reexamine the case.

The two companies have offered different interpretations regarding the further postponement of the final ruling. Medytox, which was favored in the preliminary ruling by the ITC, sees it as a simple schedule delay. A Medytox official said, "Only the schedule has been postponed; nothing else has changed," adding, "Since the preliminary ruling was made based on scientific evidence, we are confident that the decision will be upheld in the final ruling in December."

On the other hand, Daewoong Pharmaceutical, whose request for reexamination was accepted, claims that the ITC is conducting an in-depth review ahead of the final ruling. A Daewoong Pharmaceutical official said, "Since the ITC decided to reexamine, it appears that the commissioners are thoroughly reviewing the errors in the preliminary ruling," adding, "We are confident of winning the final ITC ruling and will fight to the end to reveal the truth."