Medytox, a South Korean botulinum toxin maker, has filed a lawsuit to challenge the government’s decision to cancel marketing license on its flagship botox products responsible for 40 percent of its revenue.
The company said on Friday it applied for a provisional injunction and filed a suit with a court in Daejeon to nullify the decision of the Ministry of Food and Drug Safety.
The lawsuit was filed after the ministry announced that the permit of the company’s three Meditoxin products (50 unit, 100 unit and 150 unit) will be revoked, effective June 25.
Launched in 2006, Meditoxin became the first botox product made in Korea and it had been widely used for beauty enhancement and frown lines improvement.
The ministry said Medytox was found to have used an unapproved ingredient to produce the medication and manipulated efficacy test results between 2012 and 2015, violating the Pharmaceutical Affairs Act. The company also obtained state approval for product shipment and distribution based on fabricated documents, the ministry said.
In response, Medytox said it partially admits its act of foul play but the license revocation is too harsh, given that the ministry has acknowledged that Meditoxin does not pose significant safety risks.
The combined sales of the three revoked Meditoxin products amounted to 86.8 billion won ($71.5 million) last year, which account for over 40 percent of the company’s annual revenue. The license revocation is applied to the domestic market alone, but it may affect sales in the global market.
Medytox shares on Friday rebounded 2.67 percent to 123,200 won at 11:10 a.m. after tanking 20 percent in the previous day.
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]