[Asia Economy Reporter Kim Ji-hee] Medytox announced on the 22nd that it has reached a settlement with Daewoong Pharmaceutical's U.S. partner AEON Biopharma, ending the ongoing litigation related to botulinum toxin products. This settlement also concludes the lawsuits underway in the U.S. concerning the International Trade Commission (ITC) ruling.
AEON holds exclusive development and distribution rights for Daewoong Pharmaceutical's botulinum toxin product 'Nabota' for therapeutic purposes in the U.S., Canada, and Europe.
Last month, Medytox filed a lawsuit against Daewoong Pharmaceutical and AEON in the U.S. Central District Court of California, alleging that despite the ITC ruling, Daewoong and AEON attempted to sell products developed by misappropriating Medytox's strains and manufacturing processes.
At the end of last year, the U.S. ITC found that Daewoong Pharmaceutical had infringed on Medytox's trade secrets related to manufacturing processes and banned the import and sale of Nabota in the U.S. for 21 months. Both Daewoong and Medytox have appealed this decision, and the appeal process is ongoing at the Federal Circuit Court of Appeals.
Regarding this settlement, a Medytox official stated, "Daewoong Pharmaceutical is not a party to this agreement, and this settlement does not affect any legal rights, positions, lawsuits, or investigations between Medytox and Daewoong in Korea or other countries."
Under the agreement, AEON will pay Medytox royalties on net sales of the licensed product (ABP-450) for 15 years. Additionally, AEON will issue to Medytox 26,680,511 common shares, representing 20% of AEON's currently issued stock, at par value.
Medytox will withdraw its trade secret misappropriation claims against AEON in California. It will also withdraw lawsuits related to the final ITC ruling issued in December last year. Medytox expects that this settlement will lead to the invalidation of the ITC's final decision.
In February, Medytox also reached a settlement with Evolus, Daewoong Pharmaceutical's U.S. partner. Evolus markets Daewoong's Nabota in the U.S. under the brand name Jeuveau, which is sold for cosmetic rather than therapeutic purposes.
Jung Hyun-ho, CEO of Medytox, said, "We are pleased that the dispute with AEON has been fully resolved. Although we have achieved our litigation goals in the U.S., the fight against Daewoong Pharmaceutical's illegal activities will continue, and we expect favorable rulings from Korean courts as well."
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