ABVC BioPharma Executes A Global Licensing Definitive Agreement For The Treatment Of NSCLC, Expecting Aggregate Income Of $13.75M And Royalties Of Up To $12.50M
Portfolio Pulse from Benzinga Newsdesk
ABVC BioPharma, Inc. (NASDAQ:ABVC) has entered into a licensing agreement with OncoX for the development and commercialization of BLEX 404, a drug for treating Non-Small Cell Lung Cancer (NSCLC), derived from Maitake Mushroom. The agreement includes an upfront payment of $12.5 million in cash or shares, a milestone payment of $1.25 million, and royalties up to $12.5 million. This partnership aims to leverage ABVC's R&D capabilities and OncoX's market positioning to address the unmet needs in NSCLC treatment, potentially transforming patient outcomes with combination therapy.
April 17, 2024 | 1:01 pm
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ABVC BioPharma's licensing agreement with OncoX for BLEX 404 could significantly impact its financials and market position. The deal includes substantial payments and royalties, indicating a strong revenue stream upon successful development and commercialization. This partnership could enhance ABVC's visibility in the oncology sector and potentially boost its stock price in the short term.
The licensing agreement introduces a significant potential revenue stream for ABVC, which is critical for a clinical-stage biopharmaceutical company. The upfront payment, milestone payment, and royalties represent a substantial financial benefit. Additionally, the partnership with OncoX for the development and commercialization of a promising NSCLC treatment could positively influence investor sentiment and stock performance, given the high market potential and the growing demand for effective cancer therapies.
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