By Chris Wack
ABVC BioPharma shares were up 73% to $2.07 after the company said it and its BioLite subsidiary received shares in AiBtl BioPharma for hitting a milestone on a global licensing agreement, with the prospect of up to $200 million for royalties on future sales.
The clinical-stage biopharmaceutical company received 46 million shares from AiBtl BioPharma as its first milestone payment under the global licensing agreement.
The agreement between ABVC and AiBtl placed a value of $460 million, or $10 a share, on the share payment. AiBtl is a private company, and the share value is based on the terms of the agreement between the parties and the valuation report done by an independent third party.
The company entered into a definitive global licensing agreement with AiBtl on Nov. 12 for its central nervous systems drugs with the indications of Major Depressive Disorder and Attention Deficit Hyperactivity Disorder.
ABVC expects AiBtl to hit further milestones under the agreement, upon which it may receive the remaining licensing fees of up to $7M cash and 5% royalties of net sales, up to $200 million.
Write to Chris Wack at chris.wack@wsj.com
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