ABVC BioPharma Engaged by Orion BioTech to Identify Global Licensing Partners

Rhea-AI Summary

ABVC Biopharma, Inc. (NASDAQ: ABVC) has partnered with Orion BioTech, Inc. to identify candidates for out-licensing Orion's medical devices, including the FDA-approved "Lamina Cover". This engagement allows ABVC to leverage its global relationships to find licensing partners, earning a monthly retainer and 15% of licensing income. ABVC aims to enhance revenue streams to support its oncology and CNS drug development. The company has six drugs and one medical device in clinical development, collaborating with prominent research institutions.

Positive

• Engagement with Orion BioTech to identify licensing candidates, potentially increasing revenue.
• ABVC will receive a monthly retainer and 15% of licensing income, enhancing its financial position.
• Focus on oncology and CNS drugs supports strategic diversification.

Negative

• Dependence on the success of out-licensing agreements for revenue generation.
• Potential risks associated with not securing regulatory approvals for its products.

FREMONT, CA, May 25, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – ABVC Biopharma, Inc. (NASDAQ: ABVC), a clinical stage biopharmaceutical company developing therapeutic solutions in oncology/hematology, CNS, and ophthalmology, today announced that it has been engaged by Orion BioTech, Inc., a medical device company based in Taipei, Taiwan, to identify candidates interested in out-licensing Orion developmental products, such as Orion’s “Lamina Cover” for spine surgery, its “Wireless Intracranial Pressure (ICP) Monitor” for brain surgery and its “Auto-stop Drill” for orthopedic surgery. The Lamina Cover recently received U.S. F.D.A. medical device 510(k) approval.

Under the terms of this engagement, ABVC will use its business relationships around the world to find licensing partners for Orion products and, in return, will receive a monthly retainer fee and 15% of the licensing income and royalties received by Orion for each licensed product. The engagement remains in effect until a written notice of termination is initiated by either party.

“We are pleased to utilize our global business development capabilities to identify potential product licensing partners for Orion BioTech,” said Dr. Howard Doong, Chief Executive Officer of ABVC BioPharma. “For us, this engagement demonstrates our desire to actively seek revenue sources that can help support the development of our oncology and CNS drugs. Other examples of this strategy include our maitake mushroom supplement distribution agreement and our recently announced services agreement with NeuCen. Both of these agreements, along with the Orion engagement, demonstrate our ability to provide valuable services to the emerging biotech industry in Taiwan.”

About ABVC BioPharma

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, it is focused on utilizing its licensed technology to conduct proof-of-concept trials through Phase II of the clinical development process at world-famous research institutions (such as Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center). For Vitargus®, the company intends to conduct the clinical trials through Phase III at various locations throughout the globe.

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. 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.

Contact:
ICR, LLC
Lucy Peng
Phone: +1 646-677-1872
Email: Lucy.Peng@icrinc.com

FAQ

What is ABVC Biopharma's recent partnership about?

ABVC Biopharma has partnered with Orion BioTech to seek licensing candidates for Orion's medical devices.

What products are included in the ABVC and Orion BioTech partnership?

The partnership focuses on Orion's "Lamina Cover", a wireless ICP monitor, and an auto-stop drill.

How does ABVC Biopharma benefit from its partnership with Orion BioTech?

ABVC will earn a monthly retainer and 15% of the licensing income from Orion's products.

What is the significance of the FDA approval for Orion's Lamina Cover?

The FDA approval enhances the marketability of the Lamina Cover, making it a key product in ABVC's licensing efforts.