ABVC signs binding term sheet for China license of MDD/ADHD drugs; up to $20M in fees plus royalties

ABVC BIOPHARMA, INC.

Binding term sheet with Xinnovation Therapeutics for exclusive license of ABV-1504 (MDD) and ABV-1505 (ADHD) in mainland China.
Potential aggregate income of $20M in licensing fees plus royalties of 5-12% of net sales.
Final definitive agreement expected within one year; subject to due diligence, regulatory approvals, board approval.
Xinnovation will bear all costs for clinical trials and product registration in China.
ABVC states royalty revenue could reach ~$50M annually and ~$1B over patent life if expected sales achieved.

item 1.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ABVC BIOPHARMA, INC. entered into Term Sheet with Xinnovation Therapeutics Co., Ltd. (effective 2023-07-31).

Action: entry
Agreement: license
Counterparty: Xinnovation Therapeutics Co., Ltd.
Effective: 2023-07-31

Exact text from the filing

On July 31, 2023, the Company entered into a binding term sheet (the “Term Sheet”) with Xinnovation Therapeutics Co., Ltd., a Company incorporated under the Law of People’s Republic of China (“Xinnovation”).

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Source: SEC EDGAR

accession 0001213900-23-062628

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