Medytox said on Friday that Gentix Limited, a subsidiary of its Chinese business partner Bloomage Biotechnology, filed a claim for damages against Medytox for contract violation with the Singapore International Arbitration Center (SIAC).

According to Medytox’s public filing on Friday, the claim amount is valued at around 119 billion won ($96.4 million). Depending on the progress of the case in the future, the charge amount is subject to change, the company said.

Additionally, Gentix has also filed a claim to confirm that the contract clause of Medybloom China, a local joint venture established between Medytox and Bloomage, was violated and that Gentix had the right to terminate the Medybloom contract.

Medytox, the Korean maker of botulinum toxin, has been preparing to enter China with its botulinum drugs, after establishing the joint venture Medybloom China in 2015.

However, the move was put on hold in July 2022 when Bloomage announced its intention to terminate its BTX partnership with Medytox.

At that time, Bloomage said it wanted to nix the agreement with Medytox because "Medytox has never provided Medybloom China with any related BTX products for sales since the signing of the joint venture agreement.”

However, Medytox defended its position saying that it was waiting to complete the licensing process in China before supplying products to Bloomage, but there has been no progress in licensing for more than four years.

"Although details cannot be disclosed due to SIAC regulations, Medytox believes that there are no violations and will respond with strong legal action," Medytox said. 

As of 10:25 A.M., Medytox's stock price fell 5.15 percent to 128,800 won ($104.43).