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Daewoong Pharmaceutical Shares Fall as Medytox Increases Damages Claim
Health Technology · Pharmaceuticals: Major · yonhap_finance · 2026-09-03
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Daewoong Pharmaceutical shares dropped early today after Medytox increased its damages claim to 500 billion KRW in their ongoing botulinum toxin dispute.
What Happened
Litigation Update: Daewoong Pharmaceutical is facing a setback in its ongoing legal battle with Medytox over botulinum toxin technology. Medytox has filed to increase its damages claim to 500 billion KRW during the appellate proceedings.
Financial Impact: The claim amount of 500 billion KRW represents approximately 44% of Daewoong Pharmaceutical's consolidated equity from last year. Investors are concerned that this significant legal risk could weigh heavily on the company's valuation.
Background: The two companies have been embroiled in a multi-year legal dispute regarding the alleged misappropriation of botulinum strains and manufacturing processes. While a lower court previously ordered Daewoong to pay 40 billion KRW, the company has appealed the decision.
Company Stance: Daewoong Pharmaceutical emphasized that the increased claim is not a final court-ordered amount. The company maintains that the enforcement of the initial ruling is currently suspended, and it intends to continue its defense in the appellate court.