It turns out that more than 50 attorneys are taking part in the second trial in the Botox (botulinum toxin) lawsuit between Medytox and Daewoong Pharmaceutical. The two companies have been fighting for eight years over the strain that is the raw material for botulinum toxin and the manufacturing process.
Botulinum toxin is a toxic protein extracted from the botulinum bacterium. When injected into the skin, it paralyzes muscles and temporarily smooths fine lines. The pharmaceutical industry calls it a "mammoth-sized legal team," noting that with growing overseas interest in K-beauty thanks to K-pop and K-dramas, the companies appear to be focusing on the Botox lawsuit.
On the 30th, according to legal sources and the pharmaceutical industry, the Civil Division 5-3 of the Seoul High Court held a hearing date on the 18th for Medytox and Daewoong Pharmaceutical's lawsuit seeking an injunction against trade secret infringement. Since May last year, the appellate court has held six preparatory hearings and five hearings. A preparatory date is a procedure to organize the issues and coordinate the future trial process before full arguments begin. A hearing is also scheduled for late Feb. next year.
Medytox and Daewoong Pharmaceutical have botulinum toxin products Meditoxin (launched in 2006) and Nabota (2014). In this case, Medytox argues that Daewoong Pharmaceutical took out its botulinum toxin strain and process. Daewoong Pharmaceutical maintains it developed the botulinum toxin independently. It says Medytox's manufacturing process technology was disclosed in papers decades ago and cannot be considered a trade secret.
The civil lawsuit over Botox between Medytox and Daewoong Pharmaceutical dates back to Oct. 2017. Medytox filed suit against Daewoong Pharmaceutical at the time, and the first trial ruled partially in favor of the plaintiff after six years. The Civil Agreement Division 61 of the Seoul Central District Court said in Feb. 2023 that "Daewoong Pharmaceutical must pay 40 billion won to Medytox." The court said, "The defendant (Daewoong Pharmaceutical) appears to have acquired the plaintiff's (Medytox's) trade secret information and shortened the development period," and "the plaintiff's and defendant's strains were found to have plausibility of connection." With Daewoong Pharmaceutical appealing, the case moved to the second trial.
A total of 51 attorneys are participating in the second trial. The Medytox side has 24, including Yoon & Yang LLC and One. The Daewoong Pharmaceutical side has 27, including Taepyungyang, Barun, and Yulchon. That is 14 more than the 37 attorneys in the first trial (25 for Medytox and 12 for Daewoong Pharmaceutical). A Medytox official said the company holds "the same position as in the first trial." Daewoong Pharmaceutical maintains that the first trial made a wrong judgment.
Medytox and Daewoong Pharmaceutical had a Botox dispute not only in Korea but also in the United States. The U.S. International Trade Commission (ITC) announced in Dec. 2020 a decision in the trade secret infringement case between Medytox and Daewoong Pharmaceutical to ban U.S. imports of Nabota for 21 months. However, the ITC dispute came to a close when Medytox reached a settlement with Daewoong Pharmaceutical's U.S. partner.
The history of Botox began in the 1970s. At the time, U.S. ophthalmologist Dr. Alan Scott used Botox to treat strabismus caused by eye muscle tension. In the 1980s, Botox was used to treat blepharospasm and pediatric cerebral palsy. In Korea, it received approval from the Korea Food and Drug Administration in 1995 as a treatment for strabismus and blepharospasm. It was approved as a treatment for pediatric cerebral palsy (1999) and for glabellar lines and muscle spasticity related to hyperhidrosis and stroke (2008).
Botox has had its share of fame overseas. Former U.S. President Joe Biden developed a dark spot on his forehead in the late 2000s, which foreign media reported as a side effect of Botox. Biden's side denied this and did not explain the dark spot. David Beckham, one of Britain's most iconic soccer players, was reported by foreign media in 2007 to have received Botox and later denied it.
Botox is helping lift sales at drugmakers. Daewoong Pharmaceutical's cumulative sales for the third quarter this year are 1.0352 trillion won. Of that, Nabota sales are 171 billion won, or about 17% of the total. Medytox's cumulative third-quarter sales from Botox such as Meditoxin and fillers are 163.1 billion won. They account for 87% of total sales.
Demand for Botox to smooth wrinkles and slim square jaws is rising not only among middle-aged and older consumers but also among younger people. A pharmaceutical industry official said, "K-Botox has aggressively entered overseas markets such as Latin America and the Middle East," adding, "It appears the companies are focused on the outcome of lawsuits surrounding Botox, a key sales driver."