BioLite Receives $230,000 Milestone Payment in Botanical Drug Collaboration with AiBtl

BioLite, Inc., a subsidiary of ABVC BioPharma, has received a $230,000 milestone payment from AiBtl BioPharma under their strategic licensing agreement for botanical-derived drug candidates ABV-1504 and ABV-1505. These investigational therapies target Major Depressive Disorder and Attention-Deficit/Hyperactivity Disorder, representing significant advancements in psychiatric treatment options.

This payment brings the cumulative cash received by BioLite to $230,000, while parent company ABVC has separately collected $350,000 to date. The licensing arrangement positions both entities to receive substantial future payments, with BioLite eligible for up to $7,000,000 and ABVC for up to $6,650,000 in additional milestone and licensing payments contingent on specified development achievements. On a consolidated basis, the ABVC group could benefit from up to $13,420,000 in future cash payments if all conditions are met.

Beyond cash considerations, the partnership includes significant equity components. AiBtl issued 46,000,000 common shares, with 23,000,000 shares allocated to ABVC and 23,000,000 shares allocated to BioLite. When combining total milestone payments, equity stakes, and potential future royalties, the transaction could represent approximately $667 million in potential value based on internal valuations and assumptions.

The collaboration addresses substantial market opportunities in central nervous system disorders. 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, according to data from https://www.grandviewresearch.com/press-release/global-anxiety-disorders-and-depression-treatment-market. Similarly, the ADHD therapeutics market was valued at approximately $14.3 billion in 2023 and is expected to grow to $18.6 billion by 2030, as reported by https://www.grandviewresearch.com/industry-analysis/attention-deficit-hyperactivity-disorder-adhd-market.

The global health impact of these conditions underscores the importance of developing new treatments. The World Health Organization reports that depression is one of the leading causes of disability worldwide, affecting more than 380 million people globally, as documented at https://www.who.int/news/item/30-03-2017--depression-let-s-talk-says-who-as-depression-tops-list-of-causes-of-ill-health. The Centers for Disease Control and Prevention identifies ADHD as one of the most common neurodevelopmental disorders in children, with a prevalence rate of 9.8% among U.S. children, according to information available at https://www.cdc.gov/adhd/about/index.html.

Dr. Uttam Patil, ABVC's Chief Executive Officer, emphasized the significance of the milestone payment, noting that depression and ADHD represent major global health challenges. The continued work with AiBtl aims to explore safe and effective botanical-based treatment options that may expand therapeutic choices for patients. The partnership positions ABVC to potentially become a frontrunner in the emerging field of botanical CNS therapies, combining potential cash inflows, equity stakes, and access to multi-billion-dollar market opportunities in psychotropic drugs as indicated by market research from https://www.gminsights.com/industry-analysis/psychotropic-drugs-market.

The licensing partnership represents a strategic approach to addressing unmet medical needs in psychiatric care through botanical-based therapies. If successful, the development of ABV-1504 and ABV-1505 could provide new treatment options for millions of patients worldwide while creating substantial value for the companies involved. The progress in this collaboration demonstrates the growing interest and investment in alternative therapeutic approaches for mental health conditions.