ABVC BioPharma enters into term sheet to license global rights of CNS drugs

ABVC BioPharma entered into a legal binding term sheet regarding a multi-year, global licensing agreement with AiBtl BioPharma for the Company’s CNS drugs with the indications of MDD and ADHD. The potential license will cover the Licensed Products’ clinical trial, registration, manufacturing, supply, and distribution rights. The Licensed Products for MDD and ADHD, owned by ABVC and its subsidiary BioLite, Inc., were valued at $667M by a third-party evaluation. ABVC and AiBtl are determined to collaborate on the global development of the Licensed Products. They are also working to strengthen their new drug development and business collaboration, including technology, interoperability, and standards development. In this legally binding term sheet, ABVC’s licensing revenues for ABVC and its subsidiary BioLite, Inc. include the AiBtl stock of 46 million shares and milestone cash payments of $7M with the royalties of 5% of net sales, up to $200 million, after the product’s launch. AiBtl is a US company registered in Delaware that owns 51% of Jeremy Group Co, an Asian company with assets valued at $32M. JEREMY develops and constructs 607,000 square meters of land in the Asia Economic Development Zone. One of the objectives of AiBtl’s collaboration is to integrate the health and resort industries. Additionally, the venture will capitalize on development revenues within the Asia Economic Development Zone, primarily through land lease income.