ABVC's Subsidiary AiBtl Signs Share-for-Land Agreement in Asia With Deal Valued at USD $7.67 Million
The acquired land will be designated for the cultivation and extraction of Polygala tenuifolia (Yuan Zhi), a central ingredient in AiBtl's botanical drug candidates for Major Depressive Disorder (MDD) and Attention Deficit Hyperactivity Disorder (ADHD). The Company believes this move is key to reducing sourcing risk and supporting large-scale, high-quality production of active botanical compounds.
'This agreement is a long-term investment into securing the future of botanical drug innovation,' said Uttam Patil, Ph.D., Chief Executive Officer of ABVC. 'By locking in upstream resources in Asia, we are strengthening AiBtl's infrastructure from seed to formulation - giving our neuroscience pipeline a sustainable foundation.'
The transaction also reflects ABVC's continuing efforts to expand its physical and operational footprint in the Asia-Pacific region while enhancing value for global shareholders.
Strategic Context
Over the past year, AiBtl has continued to make steady progress in its business development involving its botanical drug candidates for MDD and ADHD—two neurological conditions with multi-billion-dollar global market potential and substantial unmet medical needs. With these developments, the announcement underscores ABVC's long-term commitment to securing upstream agricultural resources and establishing a vertically integrated supply chain from cultivation to clinical application.
Market Significance of AiBtl's CNS Drug Pipeline
MDD Drug Candidate: The MDD therapeutics market is projected to reach $14 billion by 2027, with antidepressant drug sales growing at a CAGR of 6.2%. [2] Current treatment drugs face issues like delayed onset, significant side effects, and poor compliance. [3] AiBtl's MDD candidate, based on Polygala tenuifolia extract, falls under the Botanical NDA pathway. [4] It offers a safer, long-term option with potential neuroprotective effects via NGF-related pathways, positioning it as a differentiated, high-potential out-licensing target. [5]
ADHD Drug Candidate: The ADHD market is expected to exceed $24 billion by 2032, fueled by increasing diagnoses and demand for innovative treatment solutions. [6] Existing stimulants carry addiction and misuse risks. [7] AiBtl's ADHD candidate leverages natural, non-stimulant mechanisms for neurological regulation, with strong safety profile and pediatric suitability. [8] This product holds particular appeal in Asia, where parental demand for plant-based alternatives is high. [9]
For more information, please visit www.abvcpharma.com and
For more information about ABVC and its subsidiaries, stay updated on the latest updates or visit https://abvcpharma.com. Visit https://biolite-japan.com for more information on BioLite Japan. ABVC urges its shareholders to sign up on the Company's website for the latest news alerts; visit https://abvcpharma.com/?page_id=17707
About ABVC BioPharma & Its Industry
ABVC BioPharma is a clinical-stage biopharmaceutical company with an active pipeline of six drugs and one medical device (ABV-1701/Vitargus(R)) under development. For its drug products, the Company utilizes in-licensed technology from its network of world-renowned research institutions to conduct proof-of-concept trials through Phase II of clinical development. The Company's network of research institutions includes Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center. For Vitargus(R), the Company intends to conduct global clinical trials through Phase III.
Forward-Looking Statements
This press release contains 'forward-looking statements.' Such statements may be preceded by the words 'intends,' 'may,' 'will,' 'plans,' 'expects,' 'anticipates,' 'projects,' 'predicts,' 'estimates,' 'aims,' 'believes,' 'hopes,' 'potential,' or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. None of the outcomes expressed herein are guaranteed. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our product candidates on a commercial scale on our own, or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval to proceed to the next level of the clinical trials or to market our product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy any of the Company's securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation or sale of any of the Company's securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Contact:
[1] The mentioned share valuation reflects a private transaction and does not represent a public offering price or future valuation of AiBtl stock.
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