ABVC BioPharma has received a $150,000 milestone payment from AiBtl BioPharma, marking significant progress in the commercialization of its late-stage botanical drug candidates for central nervous system disorders. The payment brings ABVC's cumulative licensing revenue to $846,000 across multiple strategic partnerships, validating the company's capital-efficient, licensing-driven business model.
The milestone payment relates to ABVC's drug candidates ABV-1504 and ABV-1505, which are being developed for Major Depressive Disorder (MDD) and Attention Deficit Hyperactivity Disorder (ADHD) respectively. Both candidates have completed Phase II and Phase IIB clinical trials and hold active Investigational New Drug applications with the U.S. Food and Drug Administration.
"This milestone payment reflects the accelerating momentum behind our global licensing strategy and validates the value of our late-stage clinical assets," said Dr. Uttam Patil, ABVC Chief Executive Officer. "Our partnership with AiBtl exemplifies how we are strategically collaborating with innovation-focused companies to bring our botanical therapies to market worldwide."
Strategic Partnership Portfolio Expands
AiBtl BioPharma has now paid a total of $350,000 in cash milestone licensing fees to ABVC. Including payments from other strategic partners such as ForSeeCon and OncoX, ABVC has received $846,000 in non-dilutive licensing income, reflecting growing interest in the company's late-stage botanical drug portfolio.
Over the past six months, ABVC has executed licensing agreements with multiple partners across North America and Asia:
AiBtl BioPharma Inc. licensed ABV-1504 and ABV-1505 for global development and commercialization. ABVC and its subsidiary BioLite Inc. received 46 million AiBtl shares and are eligible for potential $7 million in cash payments and royalties up to $200 million after product launches.
ForSeeCon Eye Corporation secured a license for ophthalmic indications under ABVC's botanical intellectual property platform. ABVC and its subsidiary BioFirst Corporation received 10 million ForSeeCon shares and are eligible for potential $7 million in cash payments and royalties up to $120 million after product launches.
OncoX BioPharma, Inc. entered into an agreement to expand botanical innovation into oncology. ABVC and its subsidiaries BioLite Inc. and Rgene Corporation received up to 10 million OncoX shares and are eligible for potential $5 million in cash payments and royalties up to $50 million after product launches.
Financial Performance and Business Model
The $150,000 payment is part of a larger milestone and royalty structure expected to contribute significantly to ABVC's 2025 revenue stream. The company previously announced a 234% increase in annual revenue and a 77% year-over-year improvement in earnings per share, reflecting its capital-efficient approach and licensing-driven growth.
These improvements reflect ABVC's pivot toward a licensing-first strategy, designed to generate recurring milestone income and reduce the need for dilutive fundraising. The deals align with ABVC's asset-light business model, focusing on developing innovative botanical drugs through Phase II/III and licensing out clinical-stage products to commercial partners for global expansion.
"Our licensing-first strategy is working, and today's payment is one of several anticipated milestone payments as partners progress clinical development activities under our licensing agreements," added Dr. Patil. "We remain committed to creating sustainable long-term value for our shareholders through focused innovation, smart partnerships, and disciplined execution."
Addressing Global CNS Treatment Needs
The growing demand for alternative and effective treatments for CNS disorders has become more urgent globally. According to The Daily Telegraph, Australia is currently facing a serious drug shortage, with nearly 300,000 patients expected to be affected, potentially driving some to seek medication through illegal channels. ABVC and AiBtl's progress in botanical drug development could offer a timely and legal therapeutic alternative to vulnerable patient populations in need.
AiBtl BioPharma is a Delaware-based biopharmaceutical company focused on developing botanical-based therapeutic candidates for central nervous system disorders, including major depressive disorder and attention deficit hyperactivity disorder. The company leverages traditional botanical knowledge and modern clinical research to advance drug candidates derived from Polygala tenuifolia, a traditional medicinal herb, with strategic focus on Asia-Pacific markets.
ABVC BioPharma operates as a clinical-stage biopharmaceutical company with an active pipeline of six drugs and one medical device under development. The company utilizes in-licensed technology from world-renowned research institutions including Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center to conduct proof-of-concept trials through Phase II of clinical development.
