Medytox, Only Good News Ahead?

[Asia Economy Reporter Koh Hyung-kwang] Hana Financial Investment has raised the target price for Medytox from 330,000 KRW to 400,000 KRW, judging that all negative factors related to the approval of Meditoxin have been resolved.

On the 17th, Minjeong Seon, a researcher at Hana Financial Investment, said, "Medytox's second-quarter deficit was due to litigation costs (about 6.4 billion KRW) related to the U.S. International Trade Commission (ITC), similar to the first quarter," adding, "Since the ITC preliminary ruling was announced on the 7th of last month, the lawsuit has been concluded, so no additional ITC litigation costs are expected to occur, and from the third quarter, selling and administrative expenses can recover to pre-litigation levels."

She continued, "Medytox's second-quarter sales decreased by 24.4% year-on-year, but this was due to a high base last year, and compared to the first quarter, sales increased by 37%. Particularly noteworthy is toxin exports, which amounted to 21.8 billion KRW, a 14.7% increase year-on-year and a remarkable 69% increase compared to the previous quarter," she added.

Researcher Seon stated, "On the 14th, the Daejeon High Court accepted Medytox's request for a suspension of execution regarding the 'cancellation of the product approval and recall order for Meditoxin' filed against the Ministry of Food and Drug Safety," adding, "Currently, Medytox is proceeding with the main lawsuit on the same matter, and with this acceptance, Medytox can produce and sell Meditoxin during the period the main lawsuit is ongoing."

She also explained, "There were concerns that the cancellation of product approval for Meditoxin 50, 100, and 150 units, which account for about 40% of Medytox's sales, would significantly worsen performance, but these concerns have been resolved as Medytox can now sell the Meditoxin that had its approval canceled."

Furthermore, Researcher Seon said, "Medytox received a development milestone payment of 20 million USD (about 24 billion KRW) from Allergan related to Phase 3 clinical trials," adding, "Among various rumors related to Medytox, one was that Allergan had no intention to develop Innotox and that it might soon be returned. These deliberately spread rumors were damaging Innotox's value, but this milestone payment clearly proves that such rumors are baseless falsehoods."

Finally, she concluded, "With the ITC preliminary ruling victory, the ability to produce and sell Meditoxin, and the expectation of completing Innotox's Phase 3 clinical trials, only positive factors remain for Medytox."

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