Shares of ABVC Biopharma Inc, a clinical-stage biopharmaceutical company, skyrocketed today following a significant announcement of a licensing agreement with AiBtl BioPharma. The agreement grants AiBtl global rights to ABVC’s Central Nervous System (CNS) drugs, designed to address Major Depressive Disorder (MDD) and Attention Deficit Hyperactivity Disorder (ADHD). The deal, valued at an impressive $667 million, has propelled ABVC Biopharma shares to unprecedented levels, surging by 309% to $3.48 in Thursday morning trading, and currently maintaining a staggering 168% increase.
At the time of this publication, ABVC Biopharma Inc stock (ABVC) has witnessed a surge.
ABVC Biopharma Inc
Current Price: $2.28
Change : +1.43
Change (%): (168.38%)
Volume: 61.9M
Source: Tomorrow Events Market Data
Under the multi-year agreement, AiBtl BioPharma secures comprehensive rights encompassing clinical trials, registration, as well as manufacturing and distribution privileges for the CNS drugs targeting MDD and ADHD. Additionally, AiBtl will issue a 46 million-share stock allocation to ABVC, complemented by milestone cash payments amounting to $7 million. Further, a substantial potential for royalties, capping at $200 million, is contingent on a 5% share of net sales post product launch.
Dr. Uttam Patil, the CEO of ABVC, expressed unwavering confidence in the partnership with AiBtl, emphasizing the pivotal role it plays in enabling the global expansion of their CNS drugs. Dr. Patil highlighted that this alliance allows ABVC to concentrate on the development of their other cutting-edge products, including ophthalmology medical devices and oncology drugs.
Market analysts foresee a promising trajectory for these CNS drugs, with the MDD market projected to exhibit a Compound Annual Growth Rate (CAGR) of 2.8%, reaching an estimated $14.96 billion by 2032. Similarly, the global ADHD treatment market is anticipated to demonstrate a CAGR of 7.3% between 2023 and 2032.
ABVC boasts a 52-week trading range, reaching a high of $18.70 and a low of $0.67.
Meanwhile, AiBtl BioPharma, an American entity, sets its sights on amalgamating the health and resort industries, with ambitious plans to go public on the NASDAQ exchange in 2024.
In conclusion, the surge in ABVC Biopharma shares attests to the resounding impact of their strategic licensing agreement with AiBtl BioPharma, marking a pivotal milestone in the company’s trajectory towards global recognition and growth.
