BioLite, Inc., a subsidiary of ABVC BioPharma, received a $230,000 milestone payment from AiBtl BioPharma as part of their strategic licensing agreement for botanical-derived drug candidates ABV-1504 and ABV-1505, targeting Major Depressive Disorder (MDD) and Attention-Deficit/Hyperactivity Disorder (ADHD). This payment reflects ongoing progress in developing alternative psychiatric treatments amid significant global unmet medical needs.
The cumulative payments to BioLite now total $230,000, while ABVC, as majority owner and co-licensor, has received $350,000 to date. The agreement potentially provides up to $13.42 million in future cash payments contingent on milestone achievements. Additionally, equity consideration includes 46 million common shares issued by AiBtl, split equally between ABVC and BioLite. Combining cash, equity, and potential royalties, the deal could represent approximately $667 million in total value based on internal valuations.
This collaboration addresses substantial market opportunities in CNS botanical therapies. The anxiety and depression treatment market was valued at approximately $15.4 billion in 2024 and is projected to reach $19.3 billion by 2030, according to industry research. Similarly, the ADHD therapeutics market was valued at $14.3 billion in 2023 and is expected to grow to $18.6 billion by 2030.
The development is critical due to the scale of psychiatric disorders globally. The World Health Organization reports depression as a leading cause of disability, affecting over 380 million people worldwide. The Centers for Disease Control and Prevention identifies ADHD as one of the most common neurodevelopmental disorders in children, with a prevalence rate of 9.8% among U.S. children. These figures underscore the urgent need for innovative treatments.
Dr. Uttam Patil, ABVC's Chief Executive Officer, stated that the milestone payment highlights progress in the collaboration with AiBtl, emphasizing the potential of botanical-based therapies to address global health challenges in depression and ADHD. The partnership positions ABVC to potentially become a leader in botanical CNS therapies, leveraging financial inflows and equity stakes to strengthen its balance sheet and pursue long-term value.
The broader psychotropic drugs market, detailed in market analysis, represents a multi-billion-dollar opportunity, reinforcing the strategic importance of this development. Success in this area could expand treatment options for patients and influence the pharmaceutical industry's approach to botanical-derived therapeutics.
