Evolus investors should keep eye on progressing Korean case, says Wells Fargo
A press report from Korea Biomedical Review indicates that the Seoul Central District Court has begun to test whether Nabota, the botulinum toxin of Daewoong Pharmaceutical, forms spores in the natural environment as an attempt to help decide the litigation between South Korean toxin manufacturers, Medytox and Daewoong, Wells Fargo analyst David Maris tells investors in a research note. Medytox sued Daewoong in 2017 alleging that Daewoong stole its botulinum toxin strain to manufacture its own, and thereby licensed U.S. cosmetic rights out to Evolus (EOLS) with a stolen botulinum toxin strain, Maris adds, while noting the report also said the first ruling should come in Q4 of this year. After speaking with company, Maris says the development is not unexpected. He believes, however, that investors should be aware of the progress and status of the litigation. The analyst keeps a Market Perform rating on Evolus shares with a $16 price target.