Preliminary U.S. trade decision favors Hugel over Medytox in Botox-related case

Industry

Published: 11 Jun. 2024, 15:56 Updated: 11 Jun. 2024, 17:26

Preliminary U.S. trade decision favors Hugel over Medytox in Botox-related case

Hugel's botulax botulinum toxin products [HUGEL]

Hugel, a Kosdaq-listed aesthetics company, prevailed over Medytox in a preliminary decision by the U.S. International Trade Commission (ITC) in a yearslong trade secret theft dispute over a Botox-related product.

Medytox is a Korean aesthetics company also trading on the Kosdaq market.

The U.S. trade authority ruled in favor of Hugel in an initial determination ahead of the final decision, finding that the company did not violate the U.S. Tariff Act, according to the companies on Tuesday.

The final determination is scheduled to be made in October.

In March 2022, Medytox filed a complaint with the ITC against Hugel, Hugel America and Croma-Pharma GmbH, alleging a violation of Section 337 of the cited Act, which pertains to intellectual property rights and patent infringements of imported goods, by stealing botulinum toxin strains and production methods to develop its botulinum toxin product.

Popularly known by the brand name Botox — developed by Allergan, which was acquired by AbbVie in 2019 — botulinum toxin is a substance that paralyzes muscles and is frequently used by medical practitioners to reduce wrinkles.

With the complaint, Medytox demanded that Hugel be banned from the U.S. market.

Based in Austria, Croma-Pharma is Hugel’s European partner. Hugel America is a U.S. joint venture established between Hugel and Croma-Pharma.

“Medytox’s accusation that Hugel stole botulinum toxin strains was found to have no evidence through the initial determination,” said a Hugel spokesperson. “Hugel will actively present our stance to do our best to make a case for the dispute until the final determination is issued in October.”

Medytox plans to request a review of the preliminary decision.

The company stressed that the initial determination is only preliminary, saying that “while we are very disappointed that the ITC found that there is no violation in its initial determination, we still believe that Hugel’s botulinum toxin products are illegal and are causing considerable harm to not only Medytox but also to the U.S. market in general," adding that "we believe a ban will be imposed on [Hugel's] products when the ITC completes a full investigation on every evidence and argument."

Hugel's share price closed at 242,000 won ($176) on Tuesday, up 13.62 percent from the previous trading day, while Medytox shed 2.92 percent to 139,500 won.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]