Shares of Medytox drop as Hugel files for patent invalidation

Medytox's shares have plunged nearly 7 percent on Friday after Hugel said it filed a patent invalidation lawsuit against its botulinum toxin-related patent in the U.S.

According to industry officials, Hugel filed a complaint with the U.S. Patent and Appeals Board (PTAB) on Feb. 21, claiming that Medytox's patent (U.S. patent number: 11331598) on "Method of Isolating Botulinum Toxin from Botulinum Toxin-containing Solution" registered in the U.S. in May last year was invalid.

Hugel said the patent was a general manufacturing technology without inventive steps and that the registration of this patent could prevent latecomers from entering the market and hinder industrial development.

While Medytox claimed that it had discovered a specific hydrogen ion concentration (pH) range that was easy to purify botulinum protein, this is a manufacturing process that has already been disclosed and should not be protected as a patent as it does not incorporate a unique new technology, Hugel said. 

As a result of the news, the stock price of Medytox closed at 226,500 won ($174) on Friday, down 7 percent from the previous trading day.

Hugel's share price was 130,800 won, down 3.75 percent from the previous trading day.

Meanwhile, Hugel and Medytox are undergoing a botulinum toxin-related lawsuit with the U.S. International Trade Commission (ITC).

Previously, Medytox filed a complaint with the ITC against Hugel in March of last year, alleging Hugel stole its BTX strain and manufacturing process.