Daewoong's botox sales in U.S. set to gain traction on Medytox-AEON settlement

[Source: each company]

Global sales of Daewoong Pharmaceutical Co.’s botulinum toxin product Nabota are set to gain traction after the South Korean pharmaceutical company’s American partner AEON Biopharma Inc. has settled a dispute with rival Medytox Inc. over allegations of trade secret theft.

Daewoong said on Wednesday that under the agreement, Medytox will receive royalties on net sales of Nabota, known as Jeuveau in the U.S. market, for 15 years from AEON, an exclusive distributor of Nabota for therapeutic purposes in the U.S., Europe and Canada, for withdrawing the lawsuit filed against the company in California last month. AEON, also has agreed to issue about 26.68 million common stocks, equivalent to 20 percent of its outstanding shares, to Medytox, at face value as part of their settlement.

Daewoong’s shares soared 11.04 percent to end at 171,000 won ($150.46) on Wednesday on the settlement news. On Thursday, it was was trading 0.58 percent, or 1,500 won, lower at 169,500 won in the morning session.

The settlement between Medytox and AEON means the resolution of all legal risks of its botox business in the global market, said Daewoong, adding that it will help boost its global market presence and increase its future business value.

This is another big victory for Daewoong after its another U.S. partner Evolus Inc., which has exclusive rights to sell Nabota for aesthetic purposes, also settled the trade secret theft dispute separately in February.

Medytox and its U.S. partner Allergan reached a three-party agreement with Evolus, agreeing to receive settlement money and royalties on Nabota sales from Evolus. Evolus also agreed to issue about 6.76 million shares of common stock to Medytox, making the Korean botox manufacturer the second majority shareholder of Evolus.

Daewoong, however, said that the latest settlement does not affect its ongoing lawsuits with Medytox in Korea, adding it will win the legal fight by debunking the allegation that it has stolen trade secrets from Medytox.

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