ABVC BioPharma Entered a Term Sheet to License Global Rights of CNS Drugs With the Indications of MDD & ADHD to AiBtl BioPharma at $667-Million Valuation

ABVC BioPharma, Inc. recently announced 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 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. 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.”

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 2 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 3.