On September 4th, Bloomage Biotech issued an announcement stating that its holding subsidiary, Julang Company, South Korean company Medytox, and Kaiman Bloomage have agreed to terminate the joint venture agreement effective from the date of contract termination, which is September 1st. Medytox and Julang Company have mutually agreed that after the termination of the joint venture agreement and exclusive agency agreement, Bloomage Meidetuo will be dissolved and deregistered upon the complete settlement of all debts owed by Bloomage Meidetuo.
It is reported that in 2015, Bloomage Biotech signed a joint venture agreement with South Korean company Medytox and established a joint venture company named Bloomage Meidetuo registered in Hong Kong. The main purpose was to develop, expand, and sell specific injection-type Botulinum Toxin Type A and other medical aesthetic products produced by Medytox in mainland China.
In 2020, Medytox’s series of products, including Botulinum Toxin products, faced recalls and destruction orders from the South Korean Ministry of Food and Drug Safety, procedures to cancel product approvals, and orders to suspend manufacturing, sales, and use. Meanwhile, the registration status of its Botulinum Toxin products in China has been under review and approval by the National Medical Products Administration’s Center for Drug Evaluation since November 11, 2019, and has been unable to complete registration and sales. Bloomage Biotech stated that the intended cooperation “cannot be realized in the foreseeable future” and proposed the termination of the partnership in August 2022.
In the financial report for the first half of 2023, Medybloom had a total liability of 1.1064 million yuan ($151,700) and a net loss of 169,500 yuan ($23,246.41).
Bloomage Biotech stated in the announcement that the ongoing arbitration process is still in progress, and the company will make every effort to protect its legitimate rights and interests. However, there are significant differences between the arbitration parties regarding breach of contract facts and the amount of claims, and there is considerable uncertainty regarding the arbitration results and the impact of unresolved arbitration on the company’s profits.
