ABVC BioPharma Reports Strong Q3 Licensing Revenues of $1.28 Million, Highlighting High-Margin Business Model

ABVC BioPharma, Inc. (NASDAQ: ABVC) has announced the collection of US$1,275,950 in total consolidated licensing revenues for the third quarter of 2025 to date, following a recent US$145,950 payment from OncoX BioPharma, Inc. This brings ABVC's total receipts from OncoX alone to US$595,950 for the quarter, with additional contributions from partners AiBtl BioPharma and ForSeeCon Eye Corporation.

The licensing revenue stream represents a high-margin business model for ABVC, as these payments incur minimal incremental operating costs due to development expenses being largely covered in prior years. This financial structure directly strengthens the company's cash position and profitability profile, providing a reliable revenue source that supports long-term growth strategies without significant additional expenditure.

Dr. Uttam Patil, ABVC's Chief Executive Officer, emphasized the significance of these payments, noting that they "underscore the current strength and reliability of our licensing framework." The revenue from OncoX specifically relates to four IND-approved oncology assets already licensed from ABVC, with OncoX actively working to expand its portfolio through potential acquisitions such as the Lycogen® lycopene platform.

OncoX BioPharma is a clinical-stage biopharmaceutical company focused on developing next-generation cancer immunotherapies derived from natural sources. The company currently has three proprietary pipeline programs, including a lead product candidate targeting solid tumors and hematologic malignancies that has demonstrated promising safety and efficacy in early-phase clinical studies. The company's expansion into cancer-supportive care and preventative health through natural ingredients aligns with growing market opportunities, particularly with the potential acquisition of the Lycogen® extraction platform for applications in preventative medicine, chronic disease care, aesthetic medicine, and animal health. According to Allied Market Research, these cross-sector applications are projected to reach a global market size of $187 million by 2030.

OncoX operates under a strategic collaboration with BioKey Inc., a U.S. FDA-registered facility, and seeks to expand its global footprint with development and commercialization plans in the United States, Japan, Taiwan, and other key Asia-Pacific markets. The total potential deal proceeds from the OncoX partnership could reach US$105,000,000 if all milestone payments are achieved, though the company notes there is no guarantee these payments will be realized.

For ABVC, these licensing revenues represent a significant component of its business strategy. The company is a clinical-stage biopharmaceutical company with an active pipeline of six drugs and one medical device (ABV-1701/Vitargus®) under development. ABVC utilizes in-licensed technology from research institutions including Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center to conduct proof-of-concept trials through Phase II of clinical development, with plans for global partnerships for Phase III trials of its medical device.

The consistent licensing revenue stream provides ABVC with financial stability while minimizing operational risks typically associated with drug development. This model allows the company to generate income from its intellectual property while partners like OncoX assume the costs and risks of further development and commercialization. The arrangement demonstrates how biopharmaceutical companies can create sustainable revenue models through strategic partnerships and licensing agreements, potentially influencing industry approaches to funding research and development while maintaining financial viability.