The order to suspend the manufacture and sale of’Innotox stock’ issued by the Ministry of Food and Drug Safety to Medytox was subject to a’temporary suspension’ from the court.
On the 24th, an official from Medytox announced that the Daejeon District Court temporarily suspended the effect until the 14th of next month for the temporary order to suspend the manufacture and sale of Innotox, issued by the Ministry of Food and Drug Safety on the 22nd. Accordingly, Medytox said that Innotex could be sold until January 14th.
A Meditox official said, “On the day the KFDA announced its administrative disposition against Innotox, it filed a lawsuit for suspension of execution and cancellation of orders. He said, “In light of previous cases such as meditoxin, we expect to be able to sell Innotox until the main lawsuit after receiving a’effective suspension’ from the court.”
Medytox also denied the possibility of a substantive review of the delisting due to the cancellation of Innotox’s license. In some cases, in the event that all Medytox botulinum toxin products are licensed due to the cancellation of Innotox’s license, the question has been raised that whether or not they will be eligible for the actual review due to the suspension of main business activities.
Regarding this, an official of Medytox said, “I know that the real test for the loss of money is applied when there is no sales at all, like Kolon TissueGene or Shillagen.” “This year, the approval of its products was canceled several times, but as a result, the sale of botulinum toxin I have never been able to do it.”
According to Medytox, as of 2019, 53.7% of Medytox’s total sales came from botulinum toxin products. Medytox’s position is that the remaining sales can be viewed as filler sales.
The Korea Exchange also said that Medytox is not subject to the delisting delisting process at the moment.
An official from the Korea Exchange said, “According to the audit report submitted by Medytox in March, sales of Medytox last year amounted to about 180 billion won, and botulinum toxin and filler products seem to be bisecting. Therefore, even if all of Innotox and other botulinum toxin formulations do not generate sales due to the cancellation of product licenses, they will not be eligible for the delisting actual review because they generate about 90 billion won in filler sales.”
However, due to the cancellation of Innotox’s license, the lawsuit for damages filed by minority shareholders against Medytox is expected to flow more favorably to the plaintiff, the minority shareholders.
Tae-seop Eom of Law Firm O’Kims, who is in charge of lawsuits for minority shareholders, said, “The plaintiffs’ stance influenced shareholders’ investment decisions by publicizing them as if they had gone through the normal licensing procedure, even though Medytox used unlicensed raw liquids and manipulated potency He said, “As long as the part related to Innotox among the disclosures that influenced the decision-making of investors was also revealed to be false, the plaintiffs’ claims could be given more strength.”