ABVC BioPharma Entered Into a Term Sheet to License Global Rights of CNS Drugs with the Indications of MDD and ADHD to AiBtl BioPharma at the Valuation of $667 Million
26 Octobre 2023 - 2:30PM
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 legal
binding term sheet regarding a multi-year, global licensing
agreement with AiBtl BioPharma (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 potential license will cover the Licensed Products'
clinical trial, registration, manufacturing, supply, and
distribution rights.
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
collaborate on the global development of the Licensed Products.
They are also working to strengthen their new drug development and
business collaboration, including technology, interoperability, and
standards development. In this legally binding term sheet, ABVC's
licensing revenues for ABVC and its subsidiary BioLite, Inc.
include the AiBtl stock of 46 million shares (57% of AiBtl) 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 that
owns 51% of Jeremy Group Co, LTD. (JEREMY), an Asian company with
assets valued at $32M. JEREMY develops and constructs 607,000
square meters of land in the Asia Economic Development Zone. One of
the objectives of AiBtl’s collaboration is to integrate the health
and resort industries. Additionally, the venture will capitalize on
development revenues within the Asia Economic Development Zone,
primarily through land lease income. "AiBtl aims at going IPO and
getting listed on NASDAQ in 2024," said AiBtl Chief Executive
Officer Russman Jaimes.
"AiBtl has a strong capability in its global
business development. We believe partnering with AiBtl will allow
us to secure international pharmaceutical companies to develop the
Licensed Products and bring the CNS 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 IndustryABVC
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 StatementsThis 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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