By By Chris Wack
ABVC BioPharma’s shares soared by an impressive 73% to $2.07 following the company’s announcement that it, along with its subsidiary BioLite, has been granted shares in AiBtl BioPharma. This achievement is a result of successfully reaching a milestone outlined in their global licensing agreement, which could potentially yield the company up to $200 million in royalties on future sales.
In adherence to the terms of the licensing agreement, the clinical-stage biopharmaceutical company has received an initial payment of 46 million shares from AiBtl BioPharma. This represents the first milestone payment attained.
The specified valuation of the share payment is $460 million, with each share valued at $10. The assessment was based on the agreement terms as well as an impartial third-party valuation report, considering AiBtl’s status as a private company.
On November 12, ABVC finalized a comprehensive global licensing agreement with AiBtl, specifically focused on their central nervous systems drugs catering to Major Depressive Disorder and Attention Deficit Hyperactivity Disorder.
ABVC anticipates the continuation of milestones achieved by AiBtl under this agreement. If additional milestones are reached, ABVC stands to receive the remaining licensing fees amounting to $7 million in cash and 5% royalties on net sales, potentially accumulating up to $200 million.
Comments