Why ABVC BioPharma Stock Is Up Today

ABVC BioPharma, Inc. ABVC shares are trading higher Tuesday after the company announced it has entered into a global licensing agreement with ForSeeCon Eye Corporation for the company’s ophthalmology pipeline. 

The Details:

ABVC BioPharma said that the licensing agreement includes the ophthalmology pipeline, including the medical device Vitargus licensed products and clinical trial, registration, manufacturing, supply, and distribution rights.

ABVC will receive the first licensing payment of $30 million in cash and shares within 30 days of executing the agreement. ABVC is entitled to another milestone payment of $3.5 million in cash after the first useful fundraise and royalties of 5% of net sales, up to $60 million, after the launch of the licensed product.

“We are thrilled to announce a new licensing deal that we believe will make our product available to more patients undergoing the tedious Vitrectomy procedure. This partnership underscores our commitment to providing patients with a better quality of life during and after the procedure,” said Dr. Uttam Patil, ABVC’s CEO.

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Is ABVC A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like ABVC BioPharma‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. ABVC BioPharma does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 14.97%, you'll need to buy a share of ARMOUR Residential REIT by the April 12. Once done, you can expect to receive a nominal payout of $0.24 on April 29.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on ABVC BioPharma will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

ABVC Price Action: According to Benzinga Pro, ABVC BioPharma shares are up 20% at $1.26 at the time of publication Tuesday.

Illustration of pharma lab worker created with MidJourney.