ITC’s preliminary ruling on Medytox-Hugel case delayed to November 2023

The U.S. International Trade Commission will likely announce its preliminary ruling on the dispute over alleged trade secret theft between two Korean companies – Medytox and Hugel – in November 2023, four months later than initially scheduled.

According to industry sources on Monday, the ITC recently postponed its initial determination date on the Medytox-Hugel case from July 6 to Nov. 10, 2023. That is four months behind the previous schedule, also putting off the final judgment from Nov. 6, 2023 to March 1, 2024.

It means that the ITC’s final ruling, which will determine the authenticity of the strain theft, will pass another year. In the U.S. agency, commission members make the final judgment based on the preliminary ruling of the administrative judge responsible for a case.

This past March, Medytox accused Hugel of stealing its strains and manufacturing processes and filed a complaint with ITC against Hugel, its U.S. offshoot Hugel America, and its U.S. distribution partner Chroma Pharma. ITC accepted Medytox's complaint in May, and the legal battle between the two companies began.

The latest schedule change was decided at the request of relevant parties, including Medytox and Hugel. The relevant parties had requested the delay due to late approval from the Ministry of Trade, Industry and Energy (MOTIE) regarding the data it needs to submit to the ITC.

Botulinum toxin medicine is one of the core state technologies designated by the government, requiring the MOTIE's approval to take out related data overseas.

Both companies’ legal representatives have agreed to the schedule change.

“(MOTIE’s) investigation process takes some time," a Medytox official told Korea Biomedical Review over the phone.

Responding to the speculation among some industry watchers that the schedule delay is for an out-of-the-court settlement, the Medytox official drew a line, saying, “It has nothing to do with the content of the trial."

Meanwhile, Hugel is scheduled to hold an extraordinary shareholders’ meeting to discuss revising the company’s charter and approving the granting of stock purchase options.