As Daewoong Pharmaceutical celebrates record-breaking financial results driven by its flagship botulinum toxin, Nabota, a shadow remains over its future. The company’s decade-long legal battle with Medytox is reaching a critical juncture, with a second-instance ruling expected within the year. In a worst-case scenario, experts warn the company could face massive damages and a total suspension of Nabota’s domestic sales.
According to the Electronic Disclosure System on the 11th, Daewoong Pharmaceutical’s audit report revealed consolidated revenue of KRW 1.5709 trillion and an operating profit of KRW 196.8 billion for the past year. These figures represent a 10.4% and 33.0% increase, respectively, marking the highest performance in the company's history. The operating margin also climbed to 12.5%, up from 10.4% the previous year.
The Surge of Nabota in Global Markets
The company’s growth has been fueled by its "Big Three" products: Nabota, the gastroesophageal reflux treatment Fexuclu, and the liver health remedy Ursa. Nabota has been the standout performer, securing supply agreements with 18 international partners, including Evolus in the United States. Upfront payments alone reached approximately KRW 28.8 billion by the end of last year.
Nabota’s contribution to total revenue is expanding rapidly, reaching 14.6% (KRW 229.0 billion) last year—a significant increase from its previous share. This momentum is reflected in the U.S. market, where Evolus reported revenue of roughly KRW 400 billion, with Jeuveau (Nabota’s U.S. brand name) estimated to account for up to 90% of those sales.
Analysts expect this trajectory to continue. Kiwoom Securities projects Nabota's 2025 revenue at KRW 263.3 billion, with similar optimistic forecasts from Samsung and DB Securities.
Legal Deadlock: The Risk of Sales Suspension
Despite the financial success, the threat of litigation looms large. The dispute began in 2017 when Medytox filed a trade secret misappropriation lawsuit, alleging that Daewoong Pharmaceutical stole its botulinum toxin strain.
In 2023, the first-instance court ruled partially in favor of Medytox. While Daewoong has appealed, it has already set aside KRW 55.6 billion in provisions for potential losses. Medytox is currently seeking KRW 50.1 billion in damages.
"Genetic analysis confirmed that the strain was obtained illegally," argued Attorney Park Jong-cheol, representing Medytox. "If the theft is recognized by the court, it won't just be about damages; domestic sales of Nabota injections will be halted." He noted that while a ruling could arrive by the end of this year, the timeline remains uncertain due to ongoing evidence submissions.
Daewoong Pharmaceutical remains cautious. "Because the lawsuit is ongoing, we cannot confirm the timeline or the specific impact on sales," a company official stated. "Everything depends on the final outcome of the litigation."
