ABVC BioPharma Receives $100,000 Licensing Payment from OncoX BioPharma, Strengthening Oncology Partnership
TL;DR
ABVC's licensing model with OncoX provides investors competitive advantage through predictable cash flow and future 5% royalties on up to $55 million in sales.
ABVC's three-tier business model generates short-term licensing payments and long-term royalty revenue by transforming R&D assets into scalable, asset-light partnerships.
This partnership advances plant-based cancer therapies that could improve treatment options for breast cancer, lung cancer, and other serious conditions worldwide.
OncoX develops cancer treatments from maitake mushroom extract while building a global biotechnology network connecting US and Asian markets.
ABVC BioPharma, Inc. has received an additional $100,000 licensing payment from its oncology partner OncoX BioPharma, Inc., bringing total payments received under their agreement to $695,950. This transaction represents the fifth licensing payment made by OncoX in 2025, further validating ABVC's multi-partner licensing strategy and the execution of its oncology revenue framework.
OncoX BioPharma specializes in developing plant-derived oncology therapeutics, with its lead candidate derived from Grifola frondosa (maitake mushroom) extract showing potential in treating triple-negative breast cancer, non-small-cell lung cancer, pancreatic cancer, and myelodysplastic syndrome. The company collaborates with several leading Japanese biomedical companies and academic institutions to co-develop Precision Gene-Oriented Therapies and Anti-Fibrosis Technologies, combining stem-cell and immunotherapy platforms to accelerate clinical validation and expand global applications.
ABVC's three-tier value-amplification model demonstrates the strategic approach behind these licensing agreements. In the short-term (0-12 months), the company has received $695,950 in licensing payments, providing cash-flow visibility and consistent milestone execution. For the long-term (24+ months), ABVC stands to receive 5% royalty on net sales up to cumulative $55 million, creating sustainable, high-profit-margin recurring income. This model supports ABVC's transition from a traditional research-focused company into an asset-light, cash-visible international licensing platform with scalable and more predictable returns.
Based on consolidated data across all licensing partners, ABVC's total contractual cash revenue pool has the potential to reach up to $14.25 million, with $2.14 million received as of October 2025. Dr. Uttam Patil, ABVC's Chief Executive Officer, stated that the continued licensing payments from OncoX reflect the progress and execution of their partnership strategy, illustrating the effectiveness of ABVC's licensing-driven business model in transforming R&D assets into recurring value creation.
OncoX BioPharma operates as a clinical-stage biopharmaceutical company with three proprietary pipeline programs, including its lead product candidate targeting solid tumors and hematologic malignancies. The company has received four Investigational New Drug Applications approved by the U.S. FDA and is expanding into cancer-supportive care and preventative health through proprietary natural ingredients. OncoX has acquired the Lycogen extraction platform to enter adjacent fields including preventative medicine, chronic disease care, aesthetic medicine, and animal health, with these cross-sector applications projected to reach a global market size of $187 million by 2030 according to Allied Market Research data available at https://www.prnewswire.com/news-releases/lycopene-market-to-reach-187-3-million-globally-by-2030-at-5-2-cagr-allied-market-research-301371075.html.
The collaboration between ABVC and OncoX represents a significant development in the biotechnology sector, particularly in the area of plant-based cancer therapies. This partnership not only provides immediate financial benefits through licensing payments but also establishes a framework for long-term revenue generation through royalty agreements. The success of this model could influence how other biotechnology companies approach partnerships and revenue generation, potentially shifting the industry toward more asset-light, licensing-focused business strategies.
For investors and industry observers, these developments signal ABVC's successful execution of its strategic vision and the growing validation of plant-derived oncology therapeutics. The continued payments from OncoX demonstrate the tangible progress in their partnership and the potential for sustainable revenue streams in the biotechnology sector, where many companies struggle to achieve consistent cash flow during the lengthy drug development process.
Curated from NewMediaWire