Is Allergan Laughing Inside at the Medytox-Daewoong Pharmaceutical Dispute?

[Image source=Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] In the 'Botulinum Toxin (Botox) War' between Medytox and Daewoong Pharmaceutical, whispers are circulating within the domestic Botox industry that the U.S. company Allergan is the 'hidden winner.' Allergan is Medytox's partner in the U.S. market and the largest Botox pharmaceutical company in the U.S. With the recent U.S. International Trade Commission (ITC) ruling in favor of Medytox, Daewoong Pharmaceutical has been barred from selling in the U.S. for the next 10 years. Medytox has also yet to start sales in the U.S. Ultimately, this ITC decision further strengthens Allergan's leadership in the U.S. market.

◆Daewoong, aiming for 2nd place in the U.S., ousted after just over a year= Above all, Daewoong Pharmaceutical has been caught off guard by the ITC's preliminary decision that it infringed on Medytox's trade secrets, forcing it to abandon its dream of capturing the second-largest share in the U.S. Botox market. Daewoong's 'Nabota' (U.S. name: Jeuveau) received U.S. Food and Drug Administration (FDA) approval only 1 year and 5 months ago. Nabota, the first Korean Botox product to enter the U.S., will be ousted from the U.S. market worth about 2 trillion KRW if this preliminary ruling is confirmed in the final judgment scheduled for November. Nabota recorded sales of 42.5 billion KRW last year and 13.6 billion KRW in the first quarter of this year. Daewoong had expected Nabota's market share in the U.S. to continue expanding, aiming for second place behind Allergan this year and sales of 2 trillion KRW within five years.

The U.S. botulinum toxin market is about 2 trillion KRW, accounting for 30% of the global Botox market (approximately 7 trillion KRW). Allergan was the first company to commercialize botulinum toxin products and holds over 70% of the U.S. market. Medytox formed a partnership with Allergan in 2013 by licensing its liquid-type Botox technology. This product is still in clinical trials, with FDA approval continuously delayed. Medytox is also conducting Phase 3 clinical trials of another Botox formulation, 'Innotox,' in the U.S. with Allergan. Both companies aim to launch in the U.S. by 2022. Despite the active partnership with Allergan, Medytox's products have yet to enter the U.S. market.

[Image source=Yonhap News]

◆ 'Korea's first' Medytox still unable to enter= For these reasons, some say the hidden winner of the ITC preliminary ruling is Allergan. An industry insider said, "The real winner in the Botox war between domestic companies may not be Medytox but Allergan," adding, "With Daewoong Pharmaceutical ousted from the U.S. market and Medytox still without approval, Allergan will solidify its number one position."

Daewoong Pharmaceutical is protesting, claiming the U.S. ITC ruling favors the domestic company Allergan. A Daewoong representative said, "The ITC is an administrative agency that, instead of investigating criminal facts, assesses national interests and domestic industry damage to decide on import bans," adding, "Because it makes policy decisions based on protecting U.S. industry, there are limits to uncovering the substantive truth of the case."

This content was produced with the assistance of AI translation services.