ABVC BioPharma Enters Definitive Agreement with Licensing Income Worth $467M and Royalties Up to $200M
16 Noviembre 2023 - 9:05AM
via NewMediaWire – ABVC BioPharma, Inc. (NASDAQ: ABVC)
("Company"), a clinical-stage biopharmaceutical company developing
therapeutic solutions in ophthalmology, CNS (central nervous
systems), and oncology/hematology, announced today that it entered
into a global licensing definitive agreement with AiBtl BioPharma
Inc. (AiBtl) for the Company's CNS drugs with the indications of
MDD (Major Depressive Disorder) and ADHD (Attention Deficit
Hyperactivity Disorder) (the "Licensed Products"). The agreement
has the potential of licensing income worth $467M and royalties up
to $200M.
The Licensed Products for MDD and ADHD, owned by ABVC and its
subsidiary BioLite, Inc., were valued at $667M by a third-party
evaluation. ABVC and AiBtl are determined to work to strengthen
their new drug development and business collaboration. This
definitive agreement brings licensing revenues for ABVC and its
subsidiary BioLite, Inc. as AiBtl stock of 46 million shares worth
$460M and milestone cash payments of $7M with the royalties of 5%
of net sales, up to $200 million, after the product's launch.
AiBtl is a US company registered in Delaware. "With ABVC as one
of our major shareholders, holding 57% consolidated shares of
AiBtl, we are proud to join the family of ABVC BioPharma. We will
help ABVC to conduct international business development for the MDD
and ADHD markets and to bridge the partnership with international
pharmaceutical companies. Meanwhile, we will take advantage of our
collaborative project in the Asian Special Economic Zone to develop
Good Agricultural Practices for the raw material of botanical new
drugs to supply the global markets," said AiBtl Chief Executive
Officer Russman Jaimes. He further emphasizes, "By licensing the
strong ABVC pipeline, AiBtl aims to go IPO with stocks of $10 per
share and getting listed on NASDAQ in 2024."
"Utilizing AiBtl's strong capability in its global business
development will allow ABVC to secure partnerships with
international pharmaceutical companies to develop the products and
subsequently bring the drugs to the market," said Dr. Uttam Patil,
ABVC Chief Executive Officer. "This will allow ABVC to continue to
focus on bringing its other proprietary patented products, such as
ophthalmology medical devices, Vitargus, and oncology drugs, to the
global market."
We believe the Company's pipeline products have great market
potential. As per the Future Market Insights report, the MDD market
was valued at $11.51 billion in 2022 and is expected to reach
$14.96 billion by 2032 with a CAGR of 2.8% over the forecast
period[1]. According to the Polaris market research report,
the global ADHD treatment market was valued at $15.23 billion in
2022 and is expected to grow at a CAGR of 7.3% over the forecast
period between 2023-2032.[2]
About ABVC BioPharma & Its Industry
ABVC BioPharma is a clinical-stage biopharmaceutical company
with an active pipeline of six drugs and one medical device
(ABV-1701/Vitargus®) under development. For its drug products, the
Company utilizes in-licensed technology from its network of
world-renowned research institutions to conduct proof-of-concept
trials through Phase II of clinical development. The Company's
network of research institutions includes Stanford University,
University of California at San Francisco, and Cedars-Sinai Medical
Center. For Vitargus®, the Company intends to conduct global
clinical trials through Phase III.
Forward-Looking Statements
This press release contains "forward-looking statements." Such
statements may be preceded by the words "intends," "may," "will,"
"plans," "expects," "anticipates," "projects," "predicts,"
"estimates," "aims," "believes," "hopes," "potential," or similar
words. Forward-looking statements are not guarantees of future
performance, are based on certain assumptions, and are subject to
various known and unknown risks and uncertainties, many of which
are beyond the Company's control, and cannot be predicted or
quantified, and, consequently, actual results may differ materially
from those expressed or implied by such forward-looking statements.
None of the outcomes expressed herein are guaranteed. Such risks
and uncertainties include, without limitation, risks and
uncertainties associated with (i) our inability to manufacture our
product candidates on a commercial scale on our own, or in
collaboration with third parties; (ii) difficulties in obtaining
financing on commercially reasonable terms; (iii) changes in the
size and nature of our competition; (iv) loss of one or more key
executives or scientists; and (v) difficulties in securing
regulatory approval to proceed to the next level of the clinical
trials or to market our product candidates. More detailed
information about the Company and the risk factors that may affect
the realization of forward-looking statements is set forth in the
Company's filings with the Securities and Exchange Commission
(SEC), including the Company's Annual Report on Form 10-K and its
Quarterly Reports on Form 10-Q. Investors are urged to read these
documents free of charge on the SEC's website
at http://www.sec.gov. The Company assumes no obligation to
publicly update or revise its forward-looking statements as a
result of new information, future events or otherwise.
This press release does not constitute an offer to sell, or the
solicitation of an offer to buy any of the Company's securities,
nor shall such securities be offered or sold in the United States
absent registration or an applicable exemption from registration,
nor shall there be any offer, solicitation or sale of any of the
Company's securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such state or
jurisdiction.
Contact:Tom MastersonEmail: tmasterson@allelecomms.com
[1] https://www.futuremarketinsights.com/reports/major-depressive-disorder-treatment-market#:~:text=The%20major%20depressive%20disorder%20(MDD,US%24%2011.51%20billion%20in%202022[2] https://www.polarismarketresearch.com/industry-analysis/attention-deficit-hyperactivity-disorder-market
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