Daewoong Pharmaceutical Strengthens Partnership with Evolus... Accelerates Entry into Europe

All Convertible Bonds Converted to Common Stock
Additional KRW 29 Billion Paid to Evolus
Support Funds Provided for Nabota US Sales

Nabota Supply Countries Expanded to Russia, South Africa, and Others

Daewoong Pharmaceutical Exterior (Photo by Daewoong Pharmaceutical)

[Asia Economy Reporter Kim Ji-hee] Daewoong Pharmaceutical is strengthening its partnership with Evolus, its partner in the beauty market for the botulinum toxin product ‘Nabota.’ The company will convert Evolus’s existing convertible bonds into common stock and provide an additional payment of approximately 29 billion KRW to Evolus.

On the 24th, Daewoong Pharmaceutical announced that it had agreed to convert all previously invested convertible bonds into common stock to strengthen the foundation of its toxin business in developed countries and promote global sales through Evolus. Last year, immediately after the preliminary ruling by the U.S. International Trade Commission (ITC), Daewoong Pharmaceutical acquired convertible bonds worth 40 million USD from Evolus. As a result, following Medytox?who became Evolus’s second-largest shareholder with a 16.7% stake through a tripartite agreement in February involving Medytox, its partner Allergan, and Evolus?Daewoong Pharmaceutical also became a shareholder of Evolus.

Daewoong Pharmaceutical will pay 25.5 million USD (approximately 28.9 billion KRW) to Evolus. Additionally, from December 16, last year, until September 22 of next year, it plans to provide a certain percentage of support funds based on the net sales volume of the botulinum toxin formulation ‘Jeubo’ (the U.S. product name for Nabota) in the United States. Evolus plans to continue investing to accelerate growth in the toxin business using the newly secured funds. Daewoong Pharmaceutical explained, "We have established a stronger partnership with Evolus in the U.S., the world’s largest botulinum toxin market worth over 2 trillion KRW, and expect significant profits through the increase in the value of the shares we have invested in."

Furthermore, both companies have agreed to promptly enter the European market, where sales approval has been obtained. The European toxin market is the world’s second-largest after the U.S., with only three products currently available. Upon market entry, Daewoong Pharmaceutical’s product is the only 900kDa toxin with an identical molecular weight that can replace Allergan’s Botox. Notably, unlike the U.S. market, the 50-unit product is the main product in the European beauty market. In January, Evolus’s ‘Nuceiva’ (the European product name for Nabota) 50-unit received additional approval following the 100-unit approval. Daewoong Pharmaceutical expects to quickly penetrate the European market as the only 900kDa toxin competing against Botox by utilizing the 50-unit product.

The agreement also includes a clause that neither party will claim any damages or compensation related to the ITC lawsuit or other disputes. This resolves uncertainties regarding entry into the U.S. and other global markets and further strengthens their cooperative relationship.

On the same day, Daewoong Pharmaceutical disclosed partial changes to the Nabota supply contract with Evolus. The main point is the expansion of countries where Evolus supplies Nabota. In addition to the existing U.S., Europe, Australia, and Canada, Russia, South Africa, Japan, and the CIS (Commonwealth of Independent States) region have been added. However, supply to Japan will be non-exclusive. The contract period has been slightly extended to February 1, 2024. The contract amount is approximately 296.81 million USD.

Seungho Jeon, CEO of Daewoong Pharmaceutical, said, "This agreement has completely resolved uncertainties in the toxin business in developed countries. We expect an increase in Daewoong Pharmaceutical’s value through maximizing exports to highly profitable markets such as the U.S., Europe, and Canada."

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