Another Botulinum Dispute... Medytox-Hugel Begin US ITC Investigation (Comprehensive)

Medytox Files Complaint with ITC Over Strain Theft
Hugel: "Baseless Claims... Will Cooperate Fully with Investigation"

[Asia Economy Reporter Chunhee Lee] A dispute between domestic botulinum toxin development companies is flaring up again. Medytox has filed a complaint with the U.S. International Trade Commission (ITC), alleging that Hugel stole its bacterial strains and related trade secrets, and the ITC investigation has begun.

On the 3rd, Medytox announced that the ITC had initiated an investigation the previous day (local time) into Hugel, Hugel America, and Chromapharma.

Earlier, in March, Medytox filed a complaint against Hugel with the ITC. Medytox claims that Hugel developed and produced botulinum toxin products by stealing its bacterial strains and manufacturing processes, among other trade secrets. Recently, Hugel expressed its intention to enter the U.S. market within the year following its expansion into China and Europe, which appears to have prompted the ITC complaint.

In response, Hugel requested the ITC to use the Early Disposition Program, which allows for early resolution of related disputes within 100 days. However, the ITC rejected this request, stating that "the issues raised are too complex to be decided within 100 days."

A Medytox official said, "With the ITC's investigation underway, Hugel's illegal activities will be revealed," adding, "Through this lawsuit, we will not only protect intellectual property rights but also create an opportunity to correct acts of technology theft."

Medytox has appointed the law firm Quinn Emanuel Urquhart & Sullivan for this lawsuit and is expected to secure litigation funding from global leaders in litigation and dispute resolution investment to proceed with the legal battle. Medytox previously explained that a global litigation and dispute resolution investment firm, which covers litigation costs instead of the parties and receives a certain percentage of the awarded damages upon winning, will fund the lawsuit.

Hugel stated, "The decision to initiate this investigation is a routine procedure and does not imply any basis for Medytox's claims," adding, "This will be an opportunity to clearly expose Medytox's false claims, which hinder the development of the domestic botulinum toxin industry and cause confusion through unreasonable management," and pledged to cooperate sincerely and actively with the ITC investigation.

Meanwhile, Medytox is also engaged in legal disputes with Daewoong Pharmaceutical. The international dispute was temporarily resolved through an agreement after the ITC decided to ban imports of Daewoong Pharmaceutical's botulinum toxin, but domestic disputes have continued since then. Although the prosecution cleared Daewoong Pharmaceutical of charges in February, related civil lawsuits are reportedly still ongoing.