FREMONT, Calif. - ABVC BioPharma, Inc. (NASDAQ: ABVC), a clinical-stage biopharmaceutical company, announced today it has received an additional $50,000 in licensing fees from AiBtl BioPharma Inc. This payment increases the total licensing fees received from strategic partners to $346,000. The funds are tied to ABVC's pipeline for psychiatric disorders, including treatments for Major Depressive Disorder (MDD) and Attention Deficit Hyperactivity Disorder (ADHD).
As part of the first milestone of the licensing fees, ABVC has acquired 23 million shares of AiBtl. Additionally, the company is set to receive royalties up to $100 million following product launches. The current pipeline for MDD and ADHD treatments has been valued at $667 million by third-party evaluators, signaling a robust collaboration between ABVC and AiBtl as they engage in discussions with larger pharmaceutical companies for out-licensing opportunities and initiate plans for a GAP-certified temperature-controlled farm.
Dr. Uttam Patil, CEO of ABVC, expressed enthusiasm about the consistent financial support from partners, which he believes reflects confidence in the company's therapeutic programs. Russman Jaimes, CEO of AiBtl, also commented on the milestone payment, emphasizing the strategic collaboration's role in advancing CNS treatment solutions and validating the progress of their therapeutic pipeline.
In the broader market, the global MDD market is anticipated to grow from $11.51 billion in 2022 to $14.96 billion by 2032, with a steady CAGR of 2.8%. The ADHD treatment market is expected to see growth from $15.23 billion in 2022 at a CAGR of 7.3% through 2032. The botanical drug market is also projected to experience significant growth, with expectations to reach $3.2 billion by 2030 from $163 million in 2021, with a CAGR of 39%.
ABVC BioPharma's focus extends to six drugs and one medical device under development, leveraging in-licensed technology from research institutions such as Stanford University, UCSF, and Cedars-Sinai Medical Center.
This news is based on a press release statement from ABVC BioPharma, Inc. and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, ABVC BioPharma, a Nevada-based pharmaceutical company, has reported a change in its independent registered public accounting firm. The company's board of directors has confirmed that WWC, P.C., the previous accounting firm, will not renew its engagement with ABVC BioPharma. Despite this, there were no disagreements reported between the company and WWC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
Moreover, the reports from WWC on ABVC BioPharma's financial statements for the fiscal years ending December 31, 2022, and December 31, 2023, and the interim period ending June 30, 2024, did not contain any adverse opinions or disclaimers. However, they did include an explanatory paragraph about the substantial doubt regarding the company's ability to continue as a going concern.
Following this development, the board has approved the engagement of Simon & Edward, LLP as the new independent registered public accounting firm. Prior to this engagement, ABVC BioPharma had not consulted with Simon & Edward on any accounting principles or transactions. These developments are part of the recent happenings at ABVC BioPharma.
InvestingPro Insights
ABVC BioPharma's recent licensing fee milestone comes amid challenging financial metrics, as revealed by InvestingPro data. The company's market capitalization stands at a modest $6.47 million, reflecting its early-stage status in the biopharmaceutical industry. Despite the positive news on licensing fees, ABVC's financial performance shows signs of strain, with a negative P/E ratio of -0.58 and a revenue decline of 82.19% over the last twelve months as of Q2 2024.
However, it's worth noting that ABVC's quarterly revenue growth surged by an impressive 1817.53% in Q2 2024, potentially indicating a turning point in its commercialization efforts. This aligns with the company's strategic partnerships and the potential value of its pipeline, as mentioned in the article.
InvestingPro Tips highlight additional insights:
1. ABVC BioPharma has a low price-to-book ratio of 0.78, suggesting the stock might be undervalued relative to its assets.
2. The company's stock price is trading at a significant discount, currently at only 16.12% of its 52-week high.
These tips, along with 11 additional insights available on InvestingPro, provide a more comprehensive view of ABVC's financial position and market performance. As the company progresses with its therapeutic programs and strategic collaborations, investors may find value in monitoring these metrics alongside the developmental milestones outlined in the article.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.