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Daewoong Pharmaceutical Shares Slide 7% on Increased Damages Claim from Medytox
Health Technology · Biotechnology · yonhap_finance · 2026-09-03
069620, 086900
Daewoong Pharmaceutical shares fell over 7% after Medytox increased its damages claim in their ongoing botulinum toxin legal battle to 500 billion won.
What Happened
Increased Legal Claims: Daewoong Pharmaceutical announced that Medytox has increased its damages claim in their ongoing appellate lawsuit regarding trade secret misappropriation to 500 billion won. This amount represents approximately 44% of Daewoong's consolidated equity from the previous year.
Market Reaction: Following the disclosure, Daewoong Pharmaceutical's stock price dropped by 7.49% to close at 114,800 won. Investors reacted negatively to the news, reflecting concerns over the potential financial impact of the expanded litigation.
Background of Dispute: The legal conflict began in 2017 when Medytox accused Daewoong of stealing its botulinum strain and manufacturing processes. In 2023, a lower court ruled partially against Daewoong, ordering 40 billion won in damages, which triggered an appeal from the company.
Company Stance: Daewoong Pharmaceutical clarified that the updated claim amount is merely the plaintiff's demand and not a court-determined liability. The company remains in the appellate process and has successfully obtained a stay of execution regarding the initial court ruling.