SAN FRANCISCO - ABVC BioPharma, a company engaged in the development of new drugs and medical devices, has announced a major global licensing agreement with AiBtl BioPharma. The deal pertains to the commercialization of central nervous system (CNS) drugs aimed at major depressive disorder (MDD) and attention deficit hyperactivity disorder (ADHD). This strategic partnership could potentially yield up to $667 million in value for ABVC and its subsidiary BioLite, Inc., through licensing income and royalties.
Under the terms of the agreement announced today, ABVC will receive AiBtl stock valued at approximately $460 million, milestone cash payments totaling $7 million, and royalties amounting to 5% of net sales, which could reach up to $200 million post-product launch. AiBtl's objective is to support ABVC in expanding its international business footprint within the MDD and ADHD markets.
The collaboration is anticipated to leverage AiBtl's strengths in establishing partnerships with global pharmaceutical entities and developing Good Agricultural Practices for botanical new drug raw materials through a joint venture in an Asian Special Economic Zone. AiBtl, in which ABVC holds a 57% majority stake, is also planning an initial public offering (IPO) on NASDAQ in 2024, with shares projected at $10 each.
Dr. Uttam Patil, CEO of ABVC BioPharma, highlighted that AiBtl’s capabilities would be instrumental in securing international partnerships necessary to advance these products towards the market. This alliance allows ABVC to concentrate on its other patented products, including Vitargus®, an ophthalmology medical device, and drugs for oncology treatments.
The market for MDD treatments was valued at $11.51 billion in 2022 and is expected to grow to $14.96 billion by 2032 at a compound annual growth rate (CAGR) of 2.8%. Similarly, the ADHD treatment market is estimated at $15.23 billion as of 2022 and is projected to expand at a CAGR of 7.3% from 2023 to 2032.
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