Medytox-Ion Agreement... Daewoong Pharmaceutical "Complete Resolution of Legal Risks in US Business"

"Accelerating Global Market Expansion"

[Asia Economy Reporter Jihee Kim] Daewoong Pharmaceutical announced on the 23rd that with the settlement of the botulinum toxin-related lawsuits in the United States, it expects to accelerate its global market expansion.

AEON Biopharma, Daewoong Pharmaceutical's partner in the U.S. botulinum toxin treatment market, signed a settlement agreement with Medytox on the 22nd. Previously, Medytox stated that with this settlement, the ongoing lawsuits in the U.S., including the strain dispute case filed with the U.S. International Trade Commission (ITC), would be concluded.

According to the agreement, AEON will pay Medytox royalties on the net sales of Nabota (ABP-450) for 15 years. AEON will also issue 26,680,511 common shares, equivalent to 20% of its currently issued shares, to Medytox at par value. Medytox will withdraw its claims related to trade secret misappropriation filed against AEON in California. It will also withdraw lawsuits related to the final ITC ruling issued last December. Medytox explained that this settlement is expected to invalidate the ITC's final decision.

However, Daewoong Pharmaceutical is not a party to this settlement. Daewoong Pharmaceutical stated, "Since the U.S. International Trade Commission (ITC) decision was expected to be invalidated and the federal court lawsuit additionally filed by Medytox was certain to be dismissed, Daewoong Pharmaceutical had no reason to settle. However, with this settlement, all legal risks in the global market, from the aesthetic field to the therapeutic area market, have been completely resolved." Accordingly, Daewoong Pharmaceutical expects to accelerate its global market expansion of Nabota.

Since its official launch in the U.S. in May 2019, Nabota achieved the milestone of ranking third in market share within four months of its release. In March, it recorded the highest sales performance ever in the U.S. Currently, Nabota has obtained product approvals in 55 countries worldwide, including the U.S., Europe, and Canada, and has signed export contracts with about 80 countries. A European launch is also planned for early next year. In China, the goal is to complete the ongoing Phase 3 clinical trial within this year and submit a marketing authorization application.