Prosecutors to Reinvestigate Daewoong Pharmaceutical's Strain Theft... New Phase in Toxin War (Comprehensive)

The so-called 'Toxin War' between Daewoong Pharmaceutical and Medytox has entered a new phase. This is because the prosecution has decided to reopen the investigation into allegations that Daewoong Pharmaceutical stole Medytox's botulinum toxin (BTX) strain.

[Image source=Yonhap News]

According to the legal community on the 28th, the Seoul High Prosecutors' Office issued an order on the 22nd to reinvestigate the suspicion of technology leakage related to Daewoong Pharmaceutical's Botox raw materials. A reinvestigation order is a procedure in which a higher-level prosecution office reviews an appeal or re-appeal and instructs a reinvestigation if it determines that there were insufficient aspects in the initial investigation.

Earlier, in January 2017, Medytox filed a criminal complaint against Daewoong Pharmaceutical and its employees for violating the Industrial Technology Protection Act and the Unfair Competition Prevention Act, alleging theft of the BTX strain. Subsequently, the Seoul Central District Prosecutors' Office dismissed the case in February last year, citing lack of evidence and lack of prosecutorial jurisdiction, so it did not lead to prosecution. At that time, the Seoul Central District Prosecutors' Office reportedly dismissed the case because there was no evidence to prove that Medytox's strain or manufacturing process information had been leaked to Daewoong Pharmaceutical. In response, Medytox filed an appeal with the Seoul High Prosecutors' Office in March last year, arguing that the disposition was unfair.

BTX is a highly toxic substance extracted from the botulinum bacterium. This toxin is so lethal that just 1 gram can kill one million people, and it was researched as a biochemical weapon during World War II. However, when an extremely small amount of BTX is injected under the skin, it causes a slight paralysis effect on muscles, which is utilized for cosmetic or medical purposes to smooth wrinkles. BTX preparations are commonly known by the original product name 'Botox.' The American pharmaceutical company Allergan, which first commercialized this ingredient, named it Botox, and the trademark has become widely used as a generic term.

Medytox has maintained since around 2016 that Daewoong Pharmaceutical stole its strain. Medytox claims that Daewoong Pharmaceutical recruited former employees of Medytox and illicitly took out the strain while also stealing the manufacturing process. On the other hand, Daewoong Pharmaceutical has countered that it collected the BTX strain from a riverside in Yongin city, and there are records proving the origin of the strain.

Both parties are fiercely confronting each other not only through criminal complaints but also through civil lawsuits. In October 2017, Medytox filed a lawsuit against Daewoong Pharmaceutical seeking to prohibit trade secret infringement and damages amounting to about 50 billion won. The first trial in the civil case ended in March with the Seoul Central District Court ordering Daewoong Pharmaceutical to pay Medytox 40 billion won in damages, deliver the strain, and destroy products, resulting in a complete victory for Medytox. Daewoong Pharmaceutical appealed, and the second trial is currently underway.

If the prosecution's judgment changes with this reinvestigation, it is expected to affect the ongoing second trial of the civil lawsuit between the two companies. After the first trial ruling, Daewoong Pharmaceutical argued, "Even after a broad prosecution investigation by the Seoul Central District Prosecutors' Office, no direct evidence or epidemiological evidence that could determine the source relationship of the strain theft was found."

A Daewoong Pharmaceutical official stated regarding the prosecution's reinvestigation, "We will sincerely cooperate with the investigation." A Medytox official said, "We welcome the Seoul High Prosecutors' Office's decision to order a reinvestigation," and added, "We will sincerely cooperate with the investigation."

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