Unending Daewoong vs Medytox Dispute... Controversy Rekindled Over ITC Decision Nullification Effectiveness

The Medytox building (left) and Daewoong Pharmaceutical headquarters (right) located in Gangnam-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Lee Chun-hee] The dispute between Daewoong Pharmaceutical and Medytox over the source of the botulinum strain continues to smolder. With the invalidation of the U.S. International Trade Commission (ITC) final decision imminent, the two companies are sharply clashing again over whether the ruling can be used in domestic lawsuits.

According to industry sources on the 27th, on the 26th (local time), the U.S. Federal Circuit Court of Appeals dismissed the appeal against the ITC final decision as 'meaningless.' The ITC is expected to soon officially invalidate the final decision regarding the case remanded to it.

Previously, the ITC ruled last year that Daewoong Pharmaceutical infringed Medytox's trade secrets related to the manufacturing process of the botulinum strain, banning the import and sale of Daewoong's 'Nabota' (marketed as Jeuveau in the U.S.) in the U.S. for 21 months. However, in February, Evolus, Daewoong's U.S. partner, reached a tripartite agreement with Medytox and Medytox's U.S. partner Allergan to provide settlement money and royalties, resuming Nabota sales. Consequently, the U.S. appeals court dismissed the appeal, and the ITC was expected to invalidate the final decision.

Nonetheless, the two companies remain at odds over whether the invalidated final decision can be used in ongoing domestic lawsuits.

Daewoong Pharmaceutical's position is that once the ITC decision is invalidated, the parties cannot legally use it in other U.S. trials. Accordingly, Medytox's grounds based on this in domestic lawsuits will be significantly weakened, and there will be no further obstacles to Nabota's entry into the U.S. market.

On the other hand, Medytox emphasizes that the invalidation of the ITC final decision does not nullify its effect in other lawsuits. Medytox explains that the ITC submitted a brief in May stating, 'Even if the ITC final decision is invalidated, Medytox can still use the ruling.' Based on this, Medytox believes that the evidence will be recognized by domestic courts and relevant investigative agencies, providing strong grounds that Daewoong Pharmaceutical infringed Medytox's trade secrets.