Medytox Inc., a bio pharmaceutical company (CEO, HyunHo Jung), announced on the 21st (U.S. time) that it signed a settlement agreement with AEON Biopharma (AEON), Daewoong Pharmaceuticals’ U.S. partner. Medytox stated on the 22nd that the agreement resolved all ongoing litigation against AEON. The resolution also concludes ongoing litigation by Medytox in the United States, including before the US International Trade Commission (ITC).

AEON holds an exclusive license from Daewoong Pharmaceuticals Co. Ltd. (Daewoong) to develop and sell ABP-450 (Nabota: the brand name in Korea) in various countries, including the United States, Canada, EU and UK, for therapeutic indications.

On December 16, 2020, the US ITC found that Daewoong misappropriated Medytox’s manufacturing process trade secret and botulinum strain, concluding that Daewoong violated Section 337 of the Tariff Act. Daewoong and Medytox filed appeals regarding the ITC decision with the US Court of Appeals for the Federal Circuit respectively, and such appeals are currently in progress. After the ITC's final decision, Medytox has filed a lawsuit against Daewoong and AEON in the US District Court for the Central District of California based on the ITC's decision.

As Daewoong is not a party to the settlement agreement, this settlement does not affect any legal rights, positions, or proceedings between Medytox and Daewoong in Korea and other countries.

This settlement agreement includes the followings:

- AEON pays Medytox royalties on net sales of the licensed products (ABP-450) for 15 years.
- AEON will issue 26,680,511 of its common stock, amount to 20% of the currently issued AEON shares, to Medytox at par value.
- Medytox withdraws the trade secret misappropriation claim against AEON in California.
- Medytox withdraws the lawsuits related to the ITC final decision on December 16, 2020. As a result of this settlement, in the ordinary course, the ITC is expected to vacate its decision. Such steps will reflect the procedural resolution of the ITC litigation, in light of the favorable settlements achieved by Medytox.
- AEON will continue to hold the right to manufacture and commercialize ABP-450 in the U.S. and all other countries under the license granted by Medytox.

Medytox previously reached a settlement agreement with Evolus, another Daewoong's U.S. partner, on February 19, 2021. Evolus holds a license from Daewoong to sell ABP-450 under the brand name 'Jeuveau' for aesthetic indications. Now, by the settlement with AEON, Medytox resolved disputes with AEON and Evolus, which hold the distribution rights of Daewoong's botulinum toxin products in the U.S. Thus, Medytox achieved the US litigation goals.

“Medytox is pleased to have reached a full resolution of its claims with AEON,” said Medytox’s CEO, Dr. Hyunho Jung. “By demonstrating that Daewoong misappropriated Medytox trade secrets, and in turn obtaining licensing agreements with the two companies that distribute Daewoong’s toxin products in the United States and other countries, Medytox has achieved our litigation goals in the United States.” Dr. Jung added, “Our dispute with Daewoong for its wrongdoing continues, however, and we expect a favorable resolution in the Korean courts.”