ABVC BioPharma Inc ABVC and its subsidiary BioLite Inc received an aggregate of 46 million shares from AiBtl BioPharma Inc as its first milestone payment under a global licensing agreement.
The agreement between the company and AiBtl placed a value of $460 ($10 per share) on such payment.
The company entered into a definitive global licensing agreement with AiBtl in November 2023, for its CNS drugs with the indications of MDD (Major Depressive Disorder) and ADHD (Attention Deficit Hyperactivity Disorder).
According to the terms of the agreement, AiBtl delivered 46M shares to ABVC BioPharma as the first milestone payment.
The company expects AiBtl to achieve e further milestones under the agreement, upon which the company may receive the remaining licensing fees of up to $7 million cash and 5% royalties of net sales, up to $200 million.
"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," said Uttam Patil, Chief Executive Officer of ABVC.
ABVC BioPharma stock is trading higher on heavy volume, with a session volume of 34.8 million shares traded, compared to the trailing 100-day volume of 2.56 million shares, according to data from Benzinga Pro.
Price Action: ABVC shares are up 62.1% at $1.945 on the last check Wednesday.
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