(Bloomberg) — Evolus Inc. will pay AbbVie Inc.’s Allergan so it can remain on the U.S. market with a rival to the Botox wrinkle treatment, part of a settlement over stolen trade secrets. Evolus soared on the news.
Evolus and its South Korean partner Daewoong Pharmaceutical Co. were facing an import ban into the U.S. for their treatment, Jeuveau, after Allergan and its Korean partner MedyTox Inc. in December won a U.S. trade agency ruling. The agency found Jeuveau is made using MedyTox’s secret process to turn the deadly botulinum toxin into a cosmetic product.
Evolus will be able to sell Jeuveau in the U.S. and a related treatment, Nuceiva, in other territories in which Evolus has licensing rights. AbbVie and MedyTox will get milestone and royalty payments, and Evolus will issue stock to MedyTox, the companies said in a statement.
Evolus shares had their biggest one-day jump ever, rising as much as 63%.
The settlement doesn’t affect legal fights between Daewoong and MedyTox in Korea and elsewhere, the companies said. Each has accused the other of criminal wrongdoing.
Jeuveau is the only product for Evolus, and the Newport Beach, California-based company had warned of dire consequences were it forced to stop selling the treatment.
The U.S. International Trade Commission in December ordered a 21-month import ban after finding Daewoong stole trade secrets for a process to make Jeuveau. An appeals court earlier this week issued a temporary halt to that order.
The case is In the Matter of Certain Botulinum Toxin Products, 337-1145, U.S. International Trade Commission (Washington).
(Updates with details of agreement starting in third paragraph.)
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