ABVC BioPharma Subsidiary Receives $230,000 Milestone Payment in Botanical Drug Development Partnership
TL;DR
ABVC BioPharma's subsidiary BioLite secured a $230,000 milestone payment, positioning the company for up to $13.42 million in future licensing revenue from botanical CNS drugs.
ABVC BioPharma's licensing agreement with AiBtl includes $580,000 received to date, potential future payments of $13.42 million, and equity stakes totaling 46 million shares for developing botanical-derived MDD and ADHD treatments.
ABVC BioPharma's botanical drug development for depression and ADHD addresses global health needs affecting over 380 million people, potentially expanding safe treatment options worldwide.
Botanical-derived therapies for psychiatric disorders tap into growing markets projected to reach $19.3 billion for depression and $18.6 billion for ADHD by 2030.
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BioLite, Inc., a subsidiary of ABVC BioPharma, has received a $230,000 milestone payment from AiBtl BioPharma under their strategic licensing agreement for botanical-derived drug candidates ABV-1504 and ABV-1505, which target Major Depressive Disorder and Attention-Deficit/Hyperactivity Disorder. This payment represents continued progress in a partnership that could ultimately yield substantial financial returns while addressing significant global mental health challenges.
With this latest payment, BioLite has received a cumulative $230,000 from AiBtl, while parent company ABVC has separately received $350,000 to date. The licensing agreement positions both companies to receive up to $13,420,000 in future cash milestone and licensing payments if all specified development milestones are achieved. Beyond cash considerations, the agreement includes substantial equity components, with AiBtl issuing 46,000,000 common shares divided equally between ABVC and BioLite.
The total potential value of the transaction, combining cash payments, equity stakes, and potential future royalties, could reach approximately $667 million based on internal valuations. This substantial financial potential underscores the significant market opportunity for botanical-derived psychiatric treatments, particularly given the growing global mental health crisis.
The partnership addresses massive unmet medical needs in psychiatric care. 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. Similarly, the ADHD therapeutics market was valued at $14.3 billion in 2023 and is expected to grow to $18.6 billion by 2030.
These market opportunities are driven by substantial patient populations. The World Health Organization reports that depression affects more than 380 million people globally and is one of the leading causes of disability worldwide. Additionally, the Centers for Disease Control and Prevention identifies ADHD as one of the most common neurodevelopmental disorders in children, with a prevalence rate of 9.8% among U.S. children.
Dr. Uttam Patil, ABVC's Chief Executive Officer, stated that the milestone payment underscores progress in their collaboration with AiBtl, noting that depression and ADHD represent major global health challenges. The company believes the partnership positions ABVC to become a frontrunner in the emerging field of botanical CNS therapies, combining potential cash inflows, equity stakes, and access to multi-billion-dollar market opportunities.
The development of botanical-based treatment options could expand therapeutic choices for patients seeking alternatives to traditional pharmaceutical approaches. If successful, these treatments could provide new options for the millions of people worldwide affected by depression and ADHD, while potentially generating significant returns for the companies involved in their development and commercialization.
Curated from NewMediaWire
