ABVC Biopharma Inc (NASDAQ:ABVC) shares are trading higher by 7% to $1.37 Friday morning. The stock surged by 300% and then retreated on Thursday following the company’s announcement of a term sheet to license global rights for CNS drugs targeting MDD and ADHD to AiBtl BioPharma for a valuation of $667 million.
What Happened?
ABVC has entered into a multi-year licensing agreement with AiBtl BioPharma for their CNS drugs targeting MDD and ADHD. The deal encompasses clinical trials, registration, manufacturing and distribution rights.
It also includes a 46 million-share stock allocation from AiBtl, milestone cash payments of $7 million, and royalties potentially reaching $200 million, based on a 5% share of net sales post-product launch.
AiBtl, an American company, is looking to merge health and resort industries and intends to go public on NASDAQ in 2024.
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According to data from Benzinga Pro, ABVC has a 52-week high of $18.70 and a 52-week low of $0.67.
