FAQ: ABVC BioPharma Subsidiary BioLite's $230K Milestone Payment and Botanical Drug Licensing Collaboration

What is the main topic of this announcement?

BioLite, Inc., a subsidiary of ABVC BioPharma, received a $230,000 milestone payment from AiBtl BioPharma as part of their strategic licensing agreement for botanical-derived drug candidates ABV-1504 and ABV-1505, which are being developed for Major Depressive Disorder and ADHD.

Why is this milestone payment significant?

This payment represents progress in the licensing collaboration and demonstrates the ongoing financial benefits, with the ABVC group potentially receiving up to $13.42 million in future cash payments and the total deal value estimated at approximately $667 million including equity and royalties.

How much has been received in payments to date?

BioLite has received $230,000 cumulatively, while ABVC has separately received $350,000 to date, totaling $580,000 in cash collected so far under the licensing agreement.

What are the potential future financial benefits?

The ABVC group could benefit from up to $13,420,000 in future cash payments if all milestones are met, plus equity consideration of 46,000,000 common shares (split equally between ABVC and BioLite) and potential future royalties.

Who are the key companies involved in this collaboration?

ABVC BioPharma, Inc. (NASDAQ: ABVC) is the parent company, BioLite, Inc. is its subsidiary that received the payment, and AiBtl BioPharma, Inc. is the partner making the milestone payment under the licensing agreement.

What medical conditions are the drug candidates targeting?

The botanical-derived drug candidates ABV-1504 and ABV-1505 are being developed for Major Depressive Disorder (MDD) and Attention-Deficit/Hyperactivity Disorder (ADHD).

What is the market potential for these botanical drugs?

The anxiety and depression treatment market was valued at approximately $15.4 billion in 2024 and is projected to reach $19.3 billion by 2030, while the ADHD therapeutics market was valued at $14.3 billion in 2023 and is expected to grow to $18.6 billion by 2030.

When was this milestone payment announced?

The announcement was made on August 27, 2025, by ABVC BioPharma, Inc. from their headquarters in Silicon Valley, California.

What is the total potential value of this licensing agreement?

Based on internal valuations and assumptions, the total deal value including cash payments, equity stakes, and potential royalties could represent approximately $667 million in potential value.

Why are botanical-derived therapies important for psychiatric disorders?

Botanical-derived therapies represent a growing market opportunity addressing significant unmet medical needs, with depression affecting over 380 million people globally and ADHD affecting 9.8% of U.S. children according to WHO and CDC data.