Medytox said it has reached an agreement with AEON Biopharma, one of Daewoong Pharmaceutical's U.S. partners for its botulinum toxin (BTX).

AEON Biopharma is an exclusive partner with the right to license, import, and sell Daewoong's BTX Nabota, also known as ABP-450, for therapeutic purposes in the U.S., Europe, and Canada.

Medytox said it had withdrawn the U.S. lawsuit against the AEON demanding the suspension of development of Daewoong's BTX and return of profits that it filed to a California Central District Court in May.

According to Medytox, under the agreement, Medytox will receive royalties on the net sales of ABP-450 for 15 years from AEON Biopharma for withdrawing the lawsuit filed against the company in California. Also, AEON Biopharma will issue about 26.6 million common stocks, equivalent to 20 percent of the currently issued stock, to Medytox, at face value.

However, Medytox stressed that Daewoong is not part of the agreement.

"The recent settlement is with only AEON Biopharma, and the U.S. lawsuit against Daewoong remains the same," a company official said to Korea Biomedical Review. "This agreement has nothing to do with Daewoong."

The settlement will finally put an end to all pending lawsuits in the U.S. over the U.S. International Trade Commission (ITC)'s final ruling that Evolus and Daewoong manufactured Nabota with a stolen secret process and imposed a 21-month ban on imports and selling of Nabota in the U.S. in December of last year.

The company had previously reached a three-party agreement with Allergan, and Evolus where Evolus agreed to pay settlement money and royalties from Nabota sales to Medytox and Allergan. Evolus also agreed to issue about 6.76 million shares of common stock to Medytox, making the company the second majority shareholder of Evolus.

Evolus is the exclusive partner with the right to license, import, and sell Daewoong's BTX Nabota for aesthetic purposes.

In response to this agreement, both companies expect an increase in sales from the sale of botulinum toxin in the U.S. market.

As Medytox has reached an agreement with AEON Biopharma and Evolus, they have achieved most of its litigation goals in the U.S.

"The settlements have proved that Daewoong has stolen trade secrets from Medytox, and as a result, we have signed license agreements with two companies that distribute Daewoong's botulinum toxin products in the U.S. and other countries," the official said.

However, Daewoong disagreed with Medytox's views, claiming that the contract shows that Medytox hastily agreed with AEON Biopharma as it was afraid that the U.S. lawsuit filed would be dismissed.

"AEON Biopharma, which is about to undergo initial public offering (IPO) on ​​the U.S. stock market, has strategically decided to settle to remove risks and continue corporate activities by receiving investment in a situation where the company's finances are insufficient," the company said.

Daewoong pointed out that the recent settlement between Medytox and AEON Biopharma has resolved all legal risks for its BTX for the global market.

"Based on Nabota's excellent medicinal quality and technology, it is now possible to further spur the global growth," the company said. "The company also expects Nabota's global sales and future business will increase significantly."