Medytox has become the second largest shareholder of Daewoong Pharmaceutical’s US botulinum toxin sales partner, Evolus. The conflict between Medytox and Daewoong Pharmaceuticals over the source of the botulinum toxin strain was settled by an agreement between Medytox, Allergan, and Ebolus in the United States.
Medytox announced on the 22nd that it will become the second largest shareholder by acquiring 16.7% (676,2652 shares) of Evolus’ stock listed on the NASDAQ market. Evolus issued a new share of 676,2652 common stock at $0.0001 per share and handed it over to Medytox. The value of Ebolus shares acquired by Medytox for a total of 75,000 won is about 92 billion won. Alpheon, Ebolus’ largest shareholder, has more than 8.7 million shares.
Medytox, Allergan, and Ebolus agreed on the 19th to allow Nabota to sell to the US. The key is that Medytox and Allergan decided to give Ebolus the right to sell and distribute Nabota. Evolus will pay $35 million (about 38 billion won) in settlement between Medytox and Aller over the next two years.
In addition, from the time of the final decision of the US International Trade Commission (ITC) in December of last year, a certain percentage of Nabota sales in the US for 21 months between Medytox and Aller is provided as technology transfer fees (royalties). From 21 months after the ruling, only Meditox receives royalties from Ebolus. Outside the United States, only Meditox receives royalties. Evolus shares closed at $12.29, up 71.65% on the news of the three-way agreement on the 19th.
Medytox is expected to have less cost burden due to prolonged litigation. Meditox recorded 111.3 billion won in sales and 24.6 billion won in operating losses until the third quarter of last year. The litigation cost was 20.5 billion won during the same period. “Evolus’ Nabota sales are estimated to be $58 million in 2020 and $89 million in 2021,” said Seon Min-jeong, a researcher at Hana Financial Investment. It is expected that it will be charged a technology fee.”
Civil and criminal lawsuits held by Medytox and Daewoong Pharmaceuticals in Korea continue. Both sides plan to proceed with the domestic civil and criminal procedures to the end without agreement.
Reporter Kim Woo-seop [email protected]
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