What In The World Is Going On With ABVC BioPharma Stock?

ABVC Biopharma Inc ABVC shares are trading higher by 309% to $3.48 Thursday morning after the company announced it entered into a term sheet to license the global rights of CNS drugs with the indications of MDD and ADHD to AiBtl BioPharma at the valuation of $667 million.

What Happened?

ABVC has announced a multi-year licensing agreement with AiBtl BioPharma for their CNS drugs targeting Major Depressive Disorder (MDD) and Attention Deficit Hyperactivity Disorder (ADHD). The licensing covers clinical trials, registration, manufacturing and distribution rights.

The deal includes a 46 million-share stock allocation from AiBtl, milestone cash payments of $7 million, and royalties of up to $200 million, based on a 5% share of net sales after product launch.

AiBtl is an American company aiming to integrate health and resort industries and plans to go public on NASDAQ in 2024.

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What Else?

ABVC's CEO, Dr. Uttam Patil, expressed confidence that this partnership with AiBtl will enable the international development of their CNS drugs while allowing ABVC to focus on their other products, including ophthalmology medical devices and oncology drugs.

Market reports suggest a promising future for these products, with the MDD market expected to grow at a CAGR of 2.8% to $14.96 billion by 2032 and the global ADHD treatment market anticipated to grow at a CAGR of 7.3% between 2023 and 2032.

According to data from Benzinga Pro, ABVC has a 52-week high of $18.70 and a 52-week low of $0.67.