Daewoong strengthens partnership with Evolus aiming for global markets

Daewoong Pharmaceutical said that it has decided to strengthen the partnership with Evolus, its U.S. partner, to crack open foreign markets for Jeuveau, its botulinum toxin (BTX) product.

Daewoong Pharmaceutical will acquire a bigger equity stake in Evolus to strengthen its botulinum toxin business. (Daewoong)

To reinforce the foundation of the toxin business in developed countries and promote global sales through Evolus, Daewoong converted all of its convertible notes into common stocks. The company also plans to provide an additional $25.5 million in subsidies for the net sales of Jeuveau in the U.S. over a certain period.

"Daewoong has established a stronger partnership with Evolus in the U.S., the world's largest BTX market with annual sales of more than 2 trillion won ($1.7 billion), and expects huge returns through the increase in the value of its converted common stocks," the company said. Daewoong will hold 7.2 percent of Evolus' total stocks through the conversion.

With the additionally secured funds, Evolus will continue to invest in accelerating its toxin business.

More specifically, the two companies agreed to speed up entry into the European market, where they have obtained sales approval. "We plan to advance into Europe as quickly as possible," a Daewoong representative said to Korea Biomedical Review. "We have not exactly specified the timing of entry into Europe in the agreement. According to Evolus’s press release, it aims to launch our product in early next year."

Daewoong Pharmaceutical CEO Jueon Seng-ho said, "The agreement has completely resolved any uncertainties concerning our BTX business in advanced countries. We believe that Daewoong's value will increase by maximizing exports to the profitable markets of U.S., Europe and Canada."

The two companies also agreed not to claim any damages or liabilities for damages caused by the U.S. International Trade Commission (ITC) litigation with Medytox and Allergan.