ABVC BioPharma, Inc., a clinical-stage biopharmaceutical company, has taken a significant step in its partnership with AiBtl BioPharma Inc. by converting a $100,000 convertible note into 10,000 shares of AiBtl common stock at $10 per share, based on an independent valuation. This move underscores ABVC's confidence in AiBtl's potential and its commitment to invest up to $20 million in the company over time.
The investment is expected to enable AiBtl to meet its licensing obligations and collaborate with global pharmaceutical partners to accelerate the Phase III development of its CNS drug candidates, ABV-1504 and ABV-1505. ABVC's strategy involves a capital-light approach, focusing on innovative partnerships through licensing and equity models.
Dr. Uttam Patil, ABVC's Chief Executive Officer, emphasized the company's dual role as a licensing partner and anchor investor, highlighting the potential for future milestone and royalty revenues. AiBtl, which holds exclusive rights to ABVC's CNS drug candidates, is focused on developing botanical-based therapeutics for disorders such as major depressive disorder and attention deficit hyperactivity disorder, with a strategic emphasis on the Asia-Pacific markets.
This development is significant for the biopharmaceutical industry, as it represents a collaborative effort to advance CNS disorder treatments, potentially offering new options for patients worldwide. The commitment from ABVC not only provides financial support to AiBtl but also aligns with the broader trend of strategic investments in biotech innovations aimed at addressing unmet medical needs.
