US court rules in favor of Allergan in Merz Botox law suit

US drugmaker Allergan (NYSE: AGN) revealed that US District Judge Andrew. Guilford, after conducting a full trial, ruled that Merz Pharmaceuticals and Merz Aesthetics, units of the German family-owned Merz Pharma GmbH, violated the California Uniform Trade Secrets Act and issued a permanent injunction against the companies.

In a written decision, Judge Guilford concluded that Merz misappropriated important trade secrets belonging to Allergan, including “the specific identities and financial details (including sales targets, actual sales amounts, and product volumes over time) of Allergan’s relationships with virtually all of its physician customers in the USA for Botox Cosmetic (onabotulinumtoxinA) and Juvederm and a large segment of Allergan’s US physician customers for Botox for therapeutic indications).” The court also found that Merz misappropriated “Allergan's strategic marketing plans, including its plans to address competition from Merz Aesthetics and Merz Therapeutics. The value of this information is incalculable,” said Allergan.

The court concluded that the injunction, which prohibits Merz from, among other things, selling or soliciting purchases of their product, Xeomin, in the facial aesthetics market for 10 months, was necessary to serve the public interest. As the court noted, "the right of free competition does not include the right to use the confidential work product of others."