The legal battle between the companies was over Evolus selling Jeuveau. This is a prescription drug that is injected into muscles to temporarily reduce severe lines around the eyes. The allegations claimed that Evolus misused trade secrets for Jeuveau.
The news today is that AbbVie and Medytox are dropping all claims made against Evolus in their lawsuits. However, that doesn’t come without some stipulations. That includes Evolus now having to send royalty and milestone payments to the two companies.
Other conditions of the dropped charges include Evolus issuing shares of EOLS stock to Medytox. To go along with this, AbbVie and Medytox are granting it the right to continue selling Jeuveau in the U.S. It can also sell Nuceiva, Jeuveau’s name outside the U.S., in other regions.
The end of these lawsuits means new life for EOLS stock. Previously, the lawsuits were going to ban it from selling Jeuveau in the U.S. for 21 months. That would have been detrimental to Evolus as it’s the company’s only product.
EOLS investors are reacting positively to the news with increased trading to shares. As of this writing, more than 33 million shares of the stock have traded hands. To put that in perspective, its daily average trading volume is roughly 844,000 shares.
EOLS stock closed out trading on Friday up 71.7%.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.