ABVC BioPharma Shares Soar After $460M Payday
ABVC BioPharma, Inc. (Nasdaq: ABVC) and its subsidiary BioLite, Inc have received an aggregate of 46 million shares from AiBtl BioPharma Inc. as its first milestone payment under a global licensing agreement. The agreement is valued at $460 million ($10 per share). ABVC’s shares soared during intraday trading to close up 60.83%.
ABVC entered into a definitive global licensing agreement with AiBtl in November 2023, for its CNS drugs for the treatment of MDD (Major Depressive Disorder) and ADHD (Attention Deficit Hyperactivity Disorder). Under the agreement, ABVC expects AiBtl to achieve the further milestones resulting in licensing fees of up to $7 million cash and 5% royalties of net sales, up to $200 million.
Uttam Patil, Ph.D., Chief Executive Officer of ABVC, said, “We believe this milestone payment marks the beginning of ABVC’s revenue generation through licensing deals and opens new avenues that could potentially increase ABVC’s revenue. AiBtl will help ABVC conduct international business development for the MDD and ADHD markets and bridge the partnership with international pharmaceutical companies.”
The MDD market was valued at $11.51 billion in 2022 and is expected to reach $14.96 billion by 2032, while 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 and 2032.
About ABVC BioPharma
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 for PMA (pre-Market Approval).
