Seven years have not seen a shiny toxin, listed on Huaxi Biological One Paper Law, and the end of cooperation with Medytox

Zhongxin Jingwei, August 2 (Lin Yisi intern Zhao Wei) On the evening of the 1st, Huaxi Biotechnology Co., Ltd. (hereinafter referred to as Huaxi Biology) disclosed that it had issued it to Korean company Medytoxinc. Lawyer's letter requires the termination/withdrawal/lifting cooperation agreement reached between the two.

On the 2nd, Huaxi biological stocks fluctuated, and the stock price once fell more than 4%. On the afternoon of the 2nd, Huaxi Biological stock price rose slightly, as of the closing of 3.33%to 151.00 yuan/share.

The company's official website shows that the main products of MedyTox include botulinum products, hyaluronic acid fillers, medical equipment, etc., and have share close to 40%since 2009.

It is understood that botulinum toxin is also known as "thin face needle". Shanghai Securities has released a research report in May this year that botulinum toxin is mainly used for wrinkle removal, thin face, etc. in the field of medical beauty, and can also be combined with other medical beauty projects for combined treatment. The single injection price of botulinum toxin is lower than other medical aesthetic projects, high frequency use, and considerable market size.

According to the consolidation of Zhiyan Consultation data, the scale of the Chinese botox market in 2022 may exceed 6 billion yuan, and it is even expected to reach 13.5 billion yuan in 2025.

A industry insider told Zhongxin Jingwei that the technical barriers of botulinum toxin were high and the review cycle was long. Compared with the research and development of hyaluronic acid products, it has reached a bottleneck. At present, botulinum products have more development potential.

Seeing the prospects of botulinum toxin, in May 2015, Huaxi Biological and Medytox signed a joint venture agreement, and then registered and established a joint venture company Huaxi Mimi Decision Co., Ltd. (hereinafter referred to as Huaxi Meimei, which subsequently agreed on the joint venture agreement (hereinafter referred to as Huaxi Mimi The main purpose is to develop, expand and sell specific injection of botulinum toxin products and other medical cosmetic products (hereinafter referred to as "related products") produced in MEDYTOX production in mainland China.

According to the agreement of the joint venture agreement, Huaxi Biological has a 50%equity of Huaxi Midea with 50 million Hong Kong dollars. Medytox contributed with 25 million Hong Kong dollars and the exclusive agent of related products in mainland China granted to Huaxi Mimi in accordance with the exclusive agency agreement. A 50%equity of Huaxi is well -owned. The two parties have completed the signing of the exclusive agency agreement in August 2016. Huaxi Mimi has the exclusive agency rights of related products in mainland China, and assumes the registration of related products in mainland China.

However, the Medytox has never provided any related products to Huaxi Mimi for sales since the signing of the joint venture agreement. The announcement explained that based on the administrative measures taken by the Ministry of Food and Drug Safety in 2020, a series of products (including botulinum products) of Medytox suffered a recall and destruction order, procedures for canceling product approval, and the suspension of manufacturing and use commands Essence

At the same time, the registered status of Botox products registered in China in China has been registered in the review and approval of the National Drug Administration of Drug Administration from November 11, 2019. Related products cannot be sold in China, so that Medytox cannot provide botulinum products to the joint venture company Huaxi Mimi in a legal way.

At this point, Huaxi Biological ended with Medytox with a letter of paper.

Huaxi Bio finally stated that the termination of cooperation this time does not affect the company's existing medical terminal business, nor does it affect other normal production and operation activities, and the company and its holding subsidiaries are not engaged in the development, promotion, and sales of related products. There are restrictions on competition. In the future, the company will not rule out cooperation opportunities to seek other botulinum products. (For more report clues, please contact the author of this article: [email protected]) (Zhongxin Jingwei APP)

(The views in the article are for reference only, do not constitute investment suggestions, have risks in investment, and need to be cautious to enter the market.)

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