ABVC BioPharma, Inc., a clinical-stage biopharmaceutical company, has taken a significant step in its partnership with AiBtl BioPharma Inc. by converting a $100,000 convertible note into 10,000 shares of common stock at $10 per share. This move, supported by an independent valuation, underscores ABVC's confidence in AiBtl's valuation and its commitment to the biopharmaceutical firm's growth. Furthermore, ABVC has announced its intention to invest up to $20 million in AiBtl over time, reinforcing its position as a lead strategic investor.
The additional funding is expected to enable AiBtl to meet its licensing obligations and collaborate with global pharmaceutical partners to accelerate the Phase III development of its CNS drug candidates, ABV-1504 and ABV-1505. These candidates are part of a licensing agreement that includes equity, milestone payments, and royalties, potentially benefiting ABVC and its subsidiary BioLite with up to 46 million shares of AiBtl common stock, $7 million in cash milestone payments, and future sales-based royalties.
Dr. Uttam Patil, ABVC Chief Executive Officer, emphasized the company's commitment to AiBtl's success, highlighting the strategic importance of this investment in advancing AiBtl's pipeline and positioning ABVC to benefit from future revenues. This development is significant for the biopharmaceutical industry, as it represents a collaborative approach to drug development and commercialization, particularly in the CNS sector, which includes treatments for major depressive disorder and attention deficit hyperactivity disorder.
The partnership between ABVC and AiBtl exemplifies a capital-light strategy, where ABVC invests in innovative partners through a combination of licensing and equity models. This strategy not only supports the development of new therapeutic solutions but also offers a model for other companies in the biopharmaceutical industry seeking to navigate the challenges of drug development and commercialization. The commitment of up to $20 million in investment reflects a strong belief in the potential of AiBtl's botanical-based therapeutic candidates and their impact on addressing CNS disorders.
