Medytox shares rally after court orders stay on cancellation on botox until July

2020.06.24 11:47:04 | 2020.06.24 15:45:22

[Photo by Yonhap]이미지 확대

[Photo by Yonhap]

Shares of South Korea`s Medytox soared Wednesday after a district court ordered a stay to an administrative revocation of marketing license on the country’s first and steadyselling botulinum toxin brand until July 14 while it judges the validity of the move.

The No. 2 botulinum toxin maker’s stock gained 6.99 percent to finish Wednesday at 142,300 won ($118.6).

Medytox applied for a provisional injunction and filed a suit with the Daejeon District Court on June 18 after the top food and drug safety agency cancelled the license of the company’s three botox products starting June 25. The court on Tuesday held the move until July 14 to deliberate Medytox’s petition.

“The court’s decision to suspend the ministry’s decision suggests that Meditoxin does not pose significant safety risks,” said an attorney representing Medytox. “We’ll provide more legal grounds to prove the injustice of ministry’s decision to restore our name.”

The drug ministry ordered ban on Medytoxin products (50 unit, 100 unit and 150 unit), finding the company had violated the Pharmaceutical Affairs Act.

[Photo provided by Medytox]이미지 확대

[Photo provided by Medytox]

The company used an unapproved ingredient to produce the medication, manipulated efficacy test results between 2012 and 2015, and obtained state approval for product shipment and distribution based on fabricated documents, the ministry said.

Medytox partially admitted its act of foul play but argued the license revocation is too harsh considering that its botox products pose no significant safety risks.

Launched in 2006, Meditoxin became the first botox product made in Korea and had been widely used for beauty enhancement and frown lines improvement. The company relies about 40 percent of its revenue on the three products.

By Pulse

[ⓒ Pulse by Maeil Business Newspaper &, All rights reserved]