[Photo by MK DB]
Korean botulinum toxin manufacturer Medytox faces a setback in its plan to enter the Chinese market as its local partner Bloomage Biotechnology has expressed intent of terminating business partnership.
According to Medytox on Tuesday, Bloomage conveyed its intent on July 29 that it would end the partnership with Medytox, citing the Korean partner had not supplied products for sale.
But Medytox said nothing has been confirmed yet, adding Bloomage is responsible for local regulatory affairs for Medytox products in China, and Medytox for supplying its products after marketing approval.
Medytox has been preparing for its entry into the local market through a joint venture with Bloomage and applied for marketing approval for its botox product Meditoxin. However, the product has remained in the review stage for more than four years without much progress in authorization.
“We have been discussing various options for our Chinese business, including ending our business partnership with Bloomage. We received a letter from Bloomage on July 29 regarding contract termination, but nothing is final,” a Medytox spokesperson said.
“The allegations made by Bloomage in its letter are not true. Bloomage is fully responsible for product authorization and registration matters in China, while Medytox is obligated to supply its products only after marketing authorization,” the spokesperson added.
Chinese health authorities have not yet revealed the reason for the delay in the approval process for Medytoxin. The product is involved in administrative litigation in Korea but is being sold without any problems, Medytox said.
Medytox shares fell nearly 1 percent to trade at 111,000 won ($85) as of 1:10 pm on Wednesday.
By Kim Si-gyun and Minu Kim
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]