Court accepts Hugel’s request to suspend revocation of product licenses The achievement highlights the pharmaceutical company's risk management capabilities

Translated by Ryu Ho-joung 공개 2021-12-23 08:18:46

이 기사는 2021년 12월 21일 06:54 더벨 유료페이지에 표출된 기사입니다.

South Korean botox maker Hugel has obtained a court order allowing it to continue to sell its botulinum toxin products regulated by the country’s Ministry of Food and Drug Safety for now, clearing a hurdle ahead of its planned acquisition by a GS Group-led consortium.

On Friday, the Seoul Administrative Court accepted the company’s request to suspend the MFDS’ decision. In November, the authority said it would revoke licenses of four botox products made by Hugel for failing to get necessary approval to supply them domestically, and ordered the company to recall and dispose of them.

Hugel immediately released a statement saying that transactions regulated by the MFDS were made to export the products, which is not subject to domestic regulations.

With Friday’s court decision, the license revocation, which took effect December 13, will be nullified until the main case filed by Hugel against the MFDS is resolved.

Hugel is set to change hands after a consortium led by South Korean conglomerate GS Group signed a deal to buy a controlling stake in the pharmaceutical company from private equity firm Bain Capital this summer.

Earlier this month, the deal received a nod from the country’s trade ministry, which concluded that the acquisition poses no concern of technology leaks. Many expect the deal to close before the deadline of January 12, 2022.

Hugel’s dealings with the MFDS highlight its strong risk management capabilities, industry watchers said. Hugel also obtained licenses for its botox products from Chinese health authorities last year to become the first such company in South Korea. This was an achievement by the company which sought to expand into global markets amid cutthroat competition among domestic botox makers.

“We are not shaken by the acquisition process and other issues and continue to focus on increasing our competitiveness,” an official at Hugel said. “We will also increase shareholder value by retiring treasury shares and paying dividends.” (Reporting by Eun-su Choi)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재 및 재배포 금지 >
주)더벨 주소서울특별시 중구 무교로 6 (을지로 1가) 금세기빌딩 5층대표/발행인성화용 편집인이진우 등록번호서울아00483
등록년월일2007.12.27 / 제호 : 더벨(thebell) 발행년월일2007.12.30청소년보호관리책임자김용관
문의TEL : 02-724-4100 / FAX : 02-724-4109서비스 문의 및 PC 초기화TEL : 02-724-4102기술 및 장애문의TEL : 02-724-4159

더벨의 모든 기사(콘텐트)는 저작권법의 보호를 받으며, 무단 전재 및 복사와 배포 등을 금지합니다.

copyright ⓒ thebell all rights reserved.