Medytox Secures Settlement of Intellectual Property Litigation With AEON Biopharma
June 22, 2021
Cleary Gottlieb represented Medytox in settlement agreements with AEON Biopharma that fully resolve all outstanding litigation between the two companies.
The resolution also concludes ongoing litigation by Medytox in the United States, including before the International Trade Commission (ITC).
AEON Biopharma holds a license from Daewoong Pharmaceuticals Co. Ltd. (Daewoong) and possesses exclusive development and distribution rights for ABP-450 (prabotulinumtoxinA), for therapeutic indications in the United States, Canada, the European Union, inclusive of the United Kingdom, and certain other international territories.
On December 16, 2020, the ITC found that Daewoong had misappropriated Medytox’s manufacturing trade secrets and strain of c. botulinum and found a violation of Section 337 of the Tariff Act had occurred with respect to the manufacturing trade secrets. Daewoong and Medytox each appealed that determination, with proceedings ongoing before the U.S. Court of Appeals for the Federal Circuit. Following the ITC’s final determination, Medytox also filed a claim against Daewoong and AEON Biopharma in the U.S. District Court for the Central District of California, on the basis of the misappropriation found by the ITC.
Among other terms, the settlement agreements provide that:
- AEON Biopharma will pay Medytox a royalty on net sales of licensed products over a 15-year royalty period.
- AEON Biopharma will issue Medytox 26.68 million shares of common stock, equivalent to 20% of AEON Biopharma’s currently outstanding shares.
- Medytox will dismiss trade secret misappropriation claims filed against AEON Biopharma in California.
- Medytox will withdraw from participation in proceedings related to the December 16, 2020 final determination by the ITC. As a result, the ITC is expected to vacate its final determination, reflecting Medytox’s settlement of its claim for remedies from the ITC.
- AEON Biopharma will continue to have uninterrupted manufacturing and commercialization rights for ABP-450 in the United States and all other relevant territories pursuant licenses granted by Medytox.
Medytox had previously concluded an agreement on February 19, 2021, resolving litigation with Evolus Inc., which holds a license from Daewoong to sell the same product under the brand name Jeuveau for aesthetic indications. As a result of the June 22, 2021 agreement, Medytox has now resolved its disputes with both of the companies that hold distribution rights to Daewoong’s botulinum toxin product in the United States.