Hugel shares plunged more than 10 percent Friday morning on news that Medytox filed a lawsuit claiming intellectual property theft against the Korean botulinum toxin maker and its partner in the United States.
Medytox said on Friday that it has filed a complaint with the U.S. International Trade Commission (ITC) against domestic rival Hugel and and its partner Croma-Pharma and their joint venture Hugel America, alleging that Hugel stole trade secrets related to its bacterial strain and botox product manufacturing process.
The company is renewing another botox court battle in the U.S. with a Korean rival after years of similar contest with Daewoong Pharmaceutical.
Shares of Medytox rose 6 percent to 138,700 won while those of Hugel fell 12.7 percent to 121,400 won as of midday.
Medytox claimed Hugel has developed and produced botox products based on trade secrets stolen from its resource and it is trying to export those products to the U.S. Therefore, the ITC should launch an investigation into Hugel’s illegal activity and issue an import ban on botox products from Hugel, Medytox said. The company also asked the tribunal to place embargo on Hugel products already imported into the U.S. and stop Hugel from marketing and advertising its products in the country.
The lawsuit is being led by a global litigation support company that recoups legal service fees and costs from the client’s future compensation award.
By Minu Kim
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