Medytox, Allergan, Evolus Reach Tripartite Agreement on 'Botox Dispute'... Daewoong "US Business Risk Resolved"

Medytox-Allergan-Evolus Tripartite Agreement
Evolus to Pay Settlement and Royalties

Daewoong Pharmaceutical Not a Party to Agreement
Medytox: "No Impact on Investigations and Lawsuits in Korea"
Daewoong Pharmaceutical: "Will Continue Efforts to Uncover the Truth"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Ji-hee] A tripartite agreement has been reached among Medytox, its partner Allergan, and Daewoong Pharmaceutical's partner Evolus regarding the U.S. sales of Daewoong Pharmaceutical's botulinum toxin "Nabota" (U.S. product name Jeuveau). Accordingly, Evolus will be able to sell Nabota in the U.S., and Medytox and Allergan will receive settlement payments and royalties from Evolus.

On the 19th, Medytox announced that it had signed a tripartite settlement agreement with Allergan and Evolus to resolve all intellectual property lawsuits, including the U.S. International Trade Commission (ITC) litigation. Medytox also plans to withdraw the lawsuit filed against Evolus in California, U.S.

Under the agreement, Medytox and Allergan grant Evolus the rights to sell and distribute Nabota in the U.S. In addition, Evolus will pay settlement money and royalties on sales to Medytox and Allergan. Furthermore, Evolus plans to issue common shares to Medytox, enabling Medytox to hold a portion of Evolus's stock.

Previously, Medytox and Allergan had filed ITC lawsuits against Daewoong Pharmaceutical and Evolus. In response, the ITC issued an import ban order on Nabota for 21 months last December based on a violation of Section 337 of the Tariff Act.

Daewoong Pharmaceutical is not a party to this agreement. Medytox stated, "This agreement does not affect the legal rights and status between Medytox and Daewoong Pharmaceutical in Korea and other countries, nor does it impact any investigations or litigation procedures." Daewoong Pharmaceutical said, "We are not a party to this agreement and have not consented to it in advance."

For now, the agreement is seen as beneficial for both parties. Medytox, which has been struggling with adverse factors such as declining market share domestically and the government's cancellation of botulinum toxin product approvals amid a dispute lasting over five years, appears to have taken a breather.

From Daewoong Pharmaceutical's perspective, resolving uncertainties regarding its botulinum toxin business in the U.S. is positive. Daewoong Pharmaceutical stated, "We assess that this agreement completely resolves business risks in the U.S. and lays the foundation for resuming Nabota sales," adding, "Accordingly, Daewoong Pharmaceutical plans to accelerate its global market expansion with Evolus based on Nabota's quality and technology."

However, Daewoong Pharmaceutical reiterated its intention to continue the botulinum toxin strain dispute with Medytox. The company said, "We filed a fast-track appeal to the U.S. Court of Appeals for the Federal Circuit (CAFC) and were confident of victory as Medytox's claims were all proven false in the appeal trial," adding, "Since there was no reason to settle with AbbVie and Medytox, it is regrettable that this agreement eliminates the opportunity to correct the ITC decision's errors."

It further stated, "We will continue efforts to uncover the truth regarding Medytox's numerous baseless claims," and added, "We are confident of winning in domestic civil and criminal trials in the near future."

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