BioLite Subsidiary Receives $230,000 Milestone Payment from AiBtl, Advancing Botanical Drug Licensing Collaboration

ABVC BioPharma's subsidiary BioLite received a $230,000 milestone payment from AiBtl for the botanical drug candidates ABV-1504 and ABV-1505. The licensing agreement includes up to $7,000,000 in future cash milestone and licensing payments for BioLite and up to $6,650,000 for ABVC. The deal has the potential value of approximately $667 million, including cash, equity, and royalties. The botanical-derived therapies for psychiatric disorders represent a growing market opportunity, with the anxiety and depression treatment market valued at $15.4 billion in 2024 and the ADHD therapeutics market valued at $14.3 billion in 2023.

Title: ABVC BioPharma's Subsidiary BioLite Receives Milestone Payment for Botanical Drug Candidates

ABVC BioPharma's subsidiary BioLite, Inc. has received a $230,000 milestone payment from AiBtl BioPharma, Inc. under a strategic licensing agreement for two botanical-derived drug candidates, ABV-1504 and ABV-1505, aimed at treating Major Depressive Disorder (MDD) and Attention-Deficit/Hyperactivity Disorder (ADHD).

The milestone payment marks significant progress in the collaboration between ABVC BioPharma and AiBtl, with BioLite eligible for up to $7,000,000 in future cash milestone and licensing payments. ABVC, as the majority owner and co-licensor, has received $350,000 to date and could receive up to $6,650,000 more, subject to achieving specific milestones. This consolidated potential future cash payment for the ABVC group stands at $13,420,000.

The licensing agreement also includes equity consideration, with AiBtl issuing 46,000,000 common shares, 23,000,000 of which are allocated to ABVC and 23,000,000 to BioLite. The total deal value, including cash, equity, and royalties, is estimated at approximately $667 million based on internal valuations and assumptions.

The botanical-derived therapies for psychiatric disorders represent a growing global market opportunity. The anxiety and depression treatment market was valued at approximately $15.4 billion in 2024 and is projected to reach $19.3 billion by 2030, with a CAGR of 3.8% [1]. The ADHD therapeutics market was valued at approximately $14.3 billion in 2023 and is expected to grow to $18.6 billion by 2030, with a CAGR of 3.7% [2].

Dr. Uttam Patil, ABVC's Chief Executive Officer, commented, "This milestone payment underscores the progress of our collaboration with AiBtl. While future payments remain contingent on milestone achievements, the combined structure of cash and equity can provide both companies with an important foundation to advance development."

ABVC BioPharma's forward-looking outlook indicates that the licensing partnership with AiBtl has the potential to position the company as a leader in the emerging field of botanical CNS therapies. The combined potential cash inflows, equity stakes, and multi-billion-dollar market opportunity could strengthen ABVC's balance sheet and unlock transformational long-term value for shareholders.

ABVC BioPharma is a clinical-stage biopharmaceutical company with an active pipeline of six drugs and one medical device under development. The company utilizes in-licensed technology from renowned research institutions to conduct proof-of-concept trials through Phase II of clinical development.

Forward-Looking Statements: This press release contains forward-looking statements that 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 and are based on certain assumptions and risks and uncertainties, many of which are beyond the company's control.

Reference List:
[1] https://www.streetinsider.com/NewMediaWire/BioLite%2C+Inc.%2C+an+ABVC+BioPharma+Subsidiary%2C+Receives+%24230%2C000+Milestone+Payment+from+AiBtl%2C+Advancing+Botanical+Drug+Licensing+Collaboration/25256119.html
[2] https://www.streetinsider.com/NewMediaWire/BioLite%2C+Inc.%2C+an+ABVC+BioPharma+Subsidiary%2C+Receives+%24230%2C000+Milestone+Payment+from+AiBtl%2C+Advancing+Botanical+Drug+Licensing+Collaboration/25256119.html