FREMONT, CA - ABVC BioPharma, Inc. (NASDAQ: ABVC), a clinical-stage biopharmaceutical company, has entered into a licensing agreement with OncoX for the development and commercialization of a botanical drug extract aimed at treating Non-Small Cell Lung Cancer (NSCLC).
The agreement, which includes a combination of upfront payments, milestone payments, and royalties, grants OncoX exclusive rights to ABVC's product BLEX 404, derived from Maitake Mushroom.
The deal stipulates that ABVC and its affiliate Rgene Corporation will receive a license fee of $12.5 million, payable in cash or OncoX securities within 30 days, and an additional milestone payment of $1.25 million post-fundraising. Furthermore, they are entitled to royalties of 5% of net sales, capped at $12.5 million.
BLEX 404, which contains β-glucan from Grifola frondosa, is one of four products in ABVC's oncology pipeline. The United States Food & Drug Administration (US FDA) has approved Investigational New Drug (IND) applications for this and other ABVC drugs for various cancers. The IND for BLEX 404 suggests its use in combination with chemotherapy for NSCLC treatment, which often develops resistance to single-agent therapies.
Dr. Uttam Patil, CEO of ABVC, expressed optimism about the collaboration's potential to expedite the availability of BLEX 404 to patients globally. Wen-Pin Yen, CEO of OncoX, echoed the sentiment, highlighting the partnership's shared dedication to advancing medical science and improving patient care.
The global cancer therapeutics market is expected to grow significantly, with lung cancer treatments alone projected to see substantial growth through 2032. The licensing agreement is poised to leverage both companies' strengths to meet the demands of NSCLC treatment, which emphasizes the importance of combination therapies to improve patient outcomes.
This news is based on a press release statement from ABVC BioPharma.
InvestingPro Insights
ABVC BioPharma's recent licensing agreement with OncoX marks a significant milestone in the company's pursuit to enhance its oncology pipeline. A deep dive into the company's financial health using InvestingPro's real-time data reveals a complex picture. With a market capitalization of $11.8 million, ABVC is a relatively small player in the biopharmaceutical industry. The company's revenue for the last twelve months as of Q4 2023 was reported at $0.15 million, which reflects a substantial decline of 84.28% from the previous period. This sharp decrease is further accentuated by the quarterly revenue growth for Q4 2023, which plummeted by 99.63%.
InvestingPro Tips highlight the company's current P/E Ratio, which stands at -0.441, suggesting that investors are currently not valuing the company's earnings positively. Additionally, the Price / Book ratio for the same period is 1.57, which may indicate that the stock is reasonably valued in terms of its assets. For investors seeking more in-depth analysis, InvestingPro offers 25 additional tips to help navigate the financial landscape of ABVC and similar companies. Utilize the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription and gain access to these valuable insights.
The company's stock has seen volatility over the past year, with a 1-year price total return of -80.71%, but recent performance indicates a possible turnaround with a 6-month price total return of 42.99%. Despite the challenges reflected in the financial metrics, the strategic partnership with OncoX could provide a pathway to revitalize ABVC's market position and capitalize on the growing demand for innovative cancer treatments.
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