ABVC BioPharma Maintains Lucrative Global Licensing Agreements and Promising CDMO Acquisition, Strengthening Growth Potential

Expecting $19 Million Cash Income

FREMONT, CA - March 19, 2025 (NEWMEDIAWIRE) - ABVC BioPharma, Inc. (NASDAQ: ABVC), a clinical-stage biopharmaceutical company focused on innovative treatments in ophthalmology, CNS (central nervous system), and oncology/hematology, provides an update on its cash milestone payment receivables per global licensing agreements and $60 million CDMO acquisition, reinforcing its strategic positioning for long-term growth. With three major global licensing agreements across psychiatric disorders, ophthalmic medical devices, and oncology, coupled with a fully integrated pharmaceutical manufacturing facility, we believe that ABVC is well-positioned to generate revenue and expand its commercial footprint.

$19 Million in Global Licensing Agreements Securing Future Cash Revenue

Since 2023, ABVC has executed three global licensing agreements valued at $959 million,  structured with upfront payments, milestone-based revenues, and commercialization royalties. These agreements are expected to contribute an aggregate of approximately $19 million in cash revenue in 2025, in line with ABVC’s strategic financial planning.

• Partner 1 (Global MDD & ADHD Licensing Agreement) – Potential $667 million licensing deal for ABVC’s major depressive disorder (MDD) and attention-deficit/hyperactivity disorder (ADHD) drug candidates.
• The MDD therapeutics market is projected to reach $14 billion by 2027, with antidepressant drug sales growing at a CAGR of 6.2%.[1]
• The ADHD market is expected to exceed $24 billion by 2032, fueled by increasing diagnoses and demand for innovative treatment solutions.[2]
• Partner 2 (Global Vitargus® Ophthalmic Medical Device Licensing Agreement) – Potential $187 million global licensing deal for Vitargus®, ABVC’s biodegradable vitreous substitute for retinal detachment surgery.
• The ophthalmic medical device market is projected to grow at a CAGR of 5.1%, reaching $120 billion by 2033.[3]
• Vitargus® would improve post-surgical outcomes, addressing a $3.5 billion market with over 1.8 million retinal detachment surgeries performed annually - an internal survey.
• Partner 3 (Global Oncology Licensing Agreement) – Potential $105 million worldwide licensing deal covering ABVC’s oncology drug candidate, targeting Pancreatic Cancer, NSCLC, TNBC, and MDS conditions.
• The global oncology drug market is expected to surpass $533 billion by 2028, growing at a CAGR of 12.6%.[4]
• ABVC’s plant-derived oncology treatment offers a potentially safer and more effective alternative to existing therapies.

These agreements establish a strong revenue pipeline and underscore ABVC’s growing presence in the global pharmaceutical market.

$60 Million CDMO Acquisition Enhancing Vertical Integration

ABVC acquired a Contract Development and Manufacturing Organization (CDMO) in 2019 for $60 million and uses it to enhance in-house drug development, manufacturing, and commercialization capabilities. The facility provides:

• Cost Reduction & Efficiency - In-house manufacturing lowers costs and improves operational efficiency.
• Revenue Diversification - The CDMO offers contract manufacturing services to third-party pharmaceutical companies, generating additional revenue.
• Scalability – The facility can support commercial-scale production as ABVC’s pipeline advances.

The CDMO market is projected to reach $191 billion by 2029, growing at a CAGR of 7.0%, positioning ABVC to leverage this growing demand for contract manufacturing services.[5]

Market Capitalization vs. Asset Value: Unlocking Growth Potential

 ABVC’s current market capitalization reflects a growing portfolio, which includes multiple global licensing agreements and its CDMO acquisition. The company continues to advance commercialization efforts with the goal to enhance shareholder value. Based on its current agreements, ABVC anticipates approximately $19 million in cash revenue in 2025, subject to execution timelines and market conditions. 

As the company executes on its commercialization roadmap, ABVC anticipates significant revenue growth, reinforcing its position as a key player in the global biopharmaceutical and medical device markets. With a total addressable market exceeding $500 billion across its three therapeutic areas,[6] we believe that ABVC is strategically positioned for long-term value creation and market expansion.

For more information, please visit www.abvcpharma.com

For more information about ABVC and its subsidiaries, stay updated on the latest updates or visit https://abvcpharma.com. Visit https://biolite-japan.com for more information on BioLite Japan. ABVC urges its shareholders to sign up on the Company's website for the latest news alerts; visit https://abvcpharma.com/?page_id=17707

About ABVC BioPharma & Its Industry

ABVC BioPharma is a clinical-stage biopharmaceutical company with an active pipeline of six drugs and one medical device (ABV-1701/Vitargus®) under development. For its drug products, the Company utilizes in-licensed technology from its network of world-renowned research institutions to conduct proof-of-concept trials through Phase II of clinical development. The Company's network of research institutions includes Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center. For Vitargus®, the Company intends to conduct global clinical trials through Phase III.

Forward-Looking Statements

This press release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential," or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. None of the outcomes expressed herein are guaranteed. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our product candidates on a commercial scale on our own, or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval to proceed to the next level of the clinical trials or to market our product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy any of the Company's securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation or sale of any of the Company's securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

Contact:
Dr. Uttam Patil
Email: uttam@ambrivis.com

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