Medytox said Tuesday that the U.S. International Trade Commission (ITC) has decided to investigate the company's complaint about Hugel, Hugel America, Hugel’s local offshoot, and Croma Pharma, Hugel's global partner.

Medytox submitted a complaint to the ITC in April, claiming that Hugel developed botulinum toxin products using a stolen manufacturing secret from the company.

"The ITC's decision to launch an investigation will expose Hugel's illegal activities," a Medytox official said. "Through this lawsuit, Medytox will protect intellectual property rights and create an opportunity to correct malicious technology theft, which remains a dark underbelly of the K-Bio."

Hugel countered that the decision to initiate an investigation is a usual process and does not prove the validity of Medytox's claims in anyways.

"We believe this ITC investigation will serve as an opportunity to unequivocally reveal the false claims of Medytox that had been hindering the development of the Korean botulinum toxin industry through abnormal business practices of not competing with quality products but making false claims and expedients," a Hugel official said.

Accordingly, the company will dispel the slander of Medytox and prove Hugel's unique technology once again by faithfully and actively participating in all legal procedures necessary for the ITC investigation, she added.

Hugel made it clear that it would seek additional legal actions against Medytox if the ITC investigation confirms that Medytox's complaint is false.

"We once again state that Medytox's claim that we stole its trade secrets is false and aims to disparage and undermine Hugel's corporate value," the official said. "We will hold Medytox strictly legally responsible for these false allegations."

Medytox claimed that Hugel's assertions concerning the source of its C. Botulinum lacked credibility, and the latter stole the strain in 2001 from Medytox CEO Jung Hyun-ho, a university professor and developer at the time.

The complaint went on to say that while Hugel claimed to have found its novel strain of C. botulinum allegedly discovered from a food source in Korea in 2002, there had been no reported cases of developing botulinum toxin from a food source in Korea until 2003.

"In addition to Hugel's misleading statements about the source of its strain, Hugel's actions shortly before its alleged discovery of a novel strain of C. botulinum support Medytox's claims of theft and conversion," the complaint said.

Asked what the company's proof was against such allegations, a Medytox official stressed that the company cannot discuss the proof now as it might help Hugel prepare for their litigation.

The ITC is a federal agency with authority to judge cases involving companies that exploit U.S. IP rights and those that import allegedly infringing products. If the agency finds any wrongdoing during investigations, it can order an import ban on patent-infringing products.