[Weekly HOT Stocks] 'Botox War' Medytox VS Daewoong Pharmaceutical

US ITC Rules in Favor of Medytox... But Stock Price Shows Uptrend for Daewoong Pharmaceutical

Photo by Yonhap News

[Asia Economy Reporter Kum Boryeong] The conflict between Medytox and Daewoong Pharmaceutical over the botulinum toxin strain has captured the market's attention throughout the week.

The U.S. International Trade Commission (ITC) issued a final ruling stating that Daewoong Pharmaceutical's botulinum toxin product "Nabota" (U.S. name: Jeuveau) violates Section 337 of the Tariff Act and ordered a 21-month import ban within the United States. This effectively sided with Medytox. Section 337 of the U.S. Tariff Act deals with unfair trade practices related to patent, copyright, and trademark infringements.

Medytox and Daewoong Pharmaceutical have disputed the origin of the botulinum toxin strain, the raw material for the botulinum toxin products commonly known as "Botox." Medytox owns "Medytoxine," while Daewoong Pharmaceutical owns "Nabota." Medytox filed a lawsuit against Daewoong Pharmaceutical with the ITC in January last year, alleging that Daewoong stole the strain and manufacturing process technical documents.

Although the final ruling was a victory for Medytox, Daewoong Pharmaceutical's stock price rose, drawing attention. On the 17th, when the final ruling was announced, Medytox's stock price showed an early morning rise but closed at 204,000 KRW, down 5.6% (12,100 KRW) from the previous trading day. On the 18th, it closed at 195,100 KRW, down 4.36% (8,900 KRW).

Conversely, Daewoong Pharmaceutical's stock price rose 30% (40,500 KRW) to 175,500 KRW on the 17th compared to the previous trading day. On the 18th, it increased by 20.8% (36,500 KRW) to close at 212,000 KRW.

Daewoong Pharmaceutical stated that this ruling is "effectively a victory for Daewoong." Considering that the preliminary ruling in July recommended a 10-year import ban due to allegations of strain and manufacturing technology theft, the final ruling significantly shortened the import ban period to 21 months.

However, Medytox plans to appeal, aiming to correct the ITC's final ruling that the strain is not a trade secret, contrary to the preliminary ruling. Daewoong Pharmaceutical intends to immediately file for a stay of execution against the ITC's 21-month ban and appeal to the U.S. Federal Circuit Court of Appeals.

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