The clinical-stage biopharmaceutical company, ABVC BioPharma Inc. (NASDAQ: ABVC), publicized a new global definitive licensing deal with OncoX, a dietary supplements specialist in oncology. The deal focuses on propelling treatment options for Non-Small Cell Lung Cancer (NSCLC). ABVC and its associate, Rgene Corporation, will tackle clinical testing, registration, manufacturing, supply, and distribution of a single-herb botanical drug extract from Maitake Mushroom (Grifola Frondosa), specifically for treating NSCLC.
An income of $12.5 million, which can be distributed as either cash or shares in OncoX securities, is stipulated in the agreement. This sum is to be remitted within 30 days of signing the deal. Another cash milestone payment of $1.25 million is written into the contract, to be paid after OncoX’s forthcomingcycle of fundraising. However, the agreement states that there isn’t an absolute guarantee for this.
ABVC and Rgene Corporation are also eligible for royalties equal to 5% of net sales, capped at a maximum of $12.5 million, following the licensed product’s market launch.
This business move comes amid a challenging period for ABVC BioPharma, which recently encountered a significant downturn in revenue. The company showed a revenue reduction of 98.05% year-on-year and a sequential decrease of 95.24% in revenue from corporate clients.
The partnership with OncoX marks an essential juncture as ABVC BioPharma seeks to diversify its income sources and fortify its treatment development for NSCLC.
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