FREMONT, CA - ABVC BioPharma, Inc. (NASDAQ: ABVC), a clinical-stage biopharmaceutical company, announced today that it has received a significant milestone payment and shares from ForSeeCon Eye Corporation for its ophthalmology pipeline.
The milestone payment consists of 10 million shares in ForSeeCon, internally valued at $6 per share, and a cash payment of $196,000. This transaction is part of a global licensing agreement for ABVC's medical device, Vitargus, which has been valued at $187 million by a third-party valuer.
The payment from ForSeeCon, a private company based in the British Virgin Islands, brings ABVC's total cash receipts to $296,000, including previous payments from another licensee, OncoX. ABVC also reported having received shares from AiBtl and ForSeeCon, which the company estimates are valued at $460 million and $60 million, respectively.
Additionally, ABVC anticipates receiving more shares from OncoX, believed to be worth $50 million, along with up to $23.7 million in cash and potential royalties of up to $370 million from net sales from all three licensees, although these future sales are not guaranteed.
Dr. Uttam Patil, CEO of ABVC, expressed enthusiasm over the milestone payment and the ongoing partnership with ForSeeCon, highlighting the shared commitment to advancing the Vitargus project. Jerry Chang, CEO of ForSeeCon, also remarked on the importance of the milestone and the efforts to upgrade the Vitargus Pilot plant facility for GMP certification.
ABVC BioPharma's pipeline includes six drugs and Vitargus, the medical device currently under development. The company's strategy involves leveraging in-licensed technology from research institutions for clinical trials through Phase II. These institutions include Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center.
The global market for retinal surgery devices, which includes products like Vitargus, is projected to reach $4.3 billion by 2029, with a CAGR of 7.7%, driven in part by an aging global population.
This announcement contains forward-looking statements, and actual results may differ materially from those projected. The information is based on a press release statement and has not been independently verified. Investors are encouraged to read ABVC's filings with the SEC for a more comprehensive understanding of the company's risks and uncertainties.
In other recent news, ABVC BioPharma has been involved in several noteworthy developments. The company's subsidiary, AiBtl BioPharma, acquired TT Life Company, a precision medicine firm, for roughly $8.33 million.
This strategic acquisition is set to boost AiBtl's standing in the precision medicine market and consolidate its financials with TT Life. The merger aims to blend AiBtl's global development expertise with TT Life's design and manufacturing capabilities in precision medicine.
In another development, ABVC BioPharma entered into a licensing agreement with OncoX for the development and commercialization of a botanical drug extract aimed at treating Non-Small Cell Lung Cancer (NSCLC).
This deal will see ABVC and its affiliate Rgene Corporation receive a license fee of $12.5 million, payable in cash or OncoX securities within 30 days, with additional milestone payments.
Lastly, ABVC BioPharma announced its entry into a term sheet with OncoX BioPharma for the development and commercialization of its Oncology/Hematology pipeline. ABVC is set to receive $50 million in licensing fees as cash/shares within 30 days post the definitive agreement execution, plus an additional $5 million milestone payment after the first fundraising. These recent developments highlight ABVC BioPharma's active involvement in strategic partnerships and acquisitions.
InvestingPro Insights
ABVC BioPharma's recent milestone payment and share acquisition from ForSeeCon Eye Corporation has drawn attention to its financial metrics and performance. According to InvestingPro data, ABVC currently holds a market capitalization of $8.88 million USD. Despite the company's efforts in advancing its ophthalmology pipeline, it exhibits a negative P/E Ratio of -0.34, reflecting challenges in profitability. The adjusted P/E Ratio for the last twelve months as of Q1 2024 has further dipped to -0.71, underscoring ongoing financial pressures.
The company's revenue for the last twelve months as of Q1 2024 stands at a mere $0.03 million USD, with a staggering revenue decline of -97.63% during the same period. The gross profit margin has also been significantly negative at -854.45%, indicating cost management and revenue generation issues. These metrics suggest that while ABVC is making strides in its product development and licensing agreements, its financial performance remains under intense scrutiny.
InvestingPro Tips indicate that while ABVC's recent transaction with ForSeeCon may bolster its development efforts, investors should be aware of the company's financial health. With significant volatility in its stock performance, as indicated by a -84.22% one-year price total return, shareholders should consider the potential risks associated with such investments. For those interested in deeper analytics and more comprehensive insights, InvestingPro offers additional tips on ABVC and other companies. There are currently 15 more InvestingPro Tips available, which can be accessed with the use of coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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