ABVC BioPharma Inc. (NASDAQ: ABVC) is experiencing a remarkable surge in its current trading session. As of the last check, ABVC BioPharma’s stock has soared by an impressive 270.25%, reaching a valuation of $3.15 per share. This substantial upswing in ABVC’s stock price can be directly attributed to a significant global licensing endeavor.
ABVC BioPharma (ABVC) has formally entered into a legally binding term sheet establishing a comprehensive, multi-year global licensing pact with AiBtl BioPharma, denoted as AiBtl. The agreement encompasses ABVC’s Central Nervous System (CNS) pharmaceuticals, specifically tailored for treating Major Depressive Disorder (MDD) and Attention Deficit Hyperactivity Disorder (ADHD).
The proposed licensing arrangement will encompass clinical trial oversight, registration, manufacturing, supply, and distribution rights for the Licensed Products. The Licensed Products related to MDD and ADHD, both held by ABVC and its subsidiary BioLite, Inc., have been assessed at an impressive valuation of $667 million by an impartial third-party evaluation.
ABVC and AiBtl are unequivocally committed to fostering a global synergy in the development of these Licensed Products. Furthermore, they are dedicated to reinforcing their collaboration in novel drug development and business strategies, including technological innovation, interoperability, and standards advancement.
Under the binding term sheet, ABVC’s licensing revenues, pertaining to both ABVC and its subsidiary BioLite, Inc., will comprise 46 million shares of AiBtl stock (representing 57% ownership of AiBtl) and milestone cash disbursements amounting to $7 million, coupled with a 5% royalty on net sales, capped at $200 million, post-launch.
An essential facet of AiBtl’s collaborative initiative is the fusion of health and resort industries. Moreover, the partnership aims to leverage revenue streams emanating from land leases within the Asia Economic Development Zone.
AiBtl possesses considerable expertise in global business expansion, and this affiliation with ABVC will facilitate the establishment of alliances with international pharmaceutical entities for the advancement of the Licensed Products and the subsequent introduction of CNS medications into the market.
In tandem, this association will allow ABVC BioPharma to maintain its focus on launching other proprietary patented products, such as ophthalmological medical devices like Vitargus and oncology drugs, into the global market.
