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ABVC BioPharma Announces Termination of Two Contracts
FREMONT, CA, June 10, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – ABVC Biopharma, Inc. (NASDAQ: ABVC), a clinical stage biopharmaceutical company developing
About this update from Abvc Biopharma, Inc.
[{"type":"text","content":"FREMONT, CA, June 10, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – ABVC Biopharma, Inc. (NASDAQ: ABVC), a clinical stage biopharmaceutical company developing therapeutic solutions in oncology/hematology, CNS, and ophthalmology, today announced that two contracts entered into in the last 45 days have been terminated. The first of the two contracts, announced on May 3, 2022, was a $3.0 million clinical services agreement between BioKey, a wholly-owned subsidiary of the company based in Fremont, California, and NeuCen BioMed, based in Taipei, Taiwan. Under the terms of the now terminated agreement, BioKey was to be paid $3.0 million over a 3-year period to guide two NeuCen drug products, CEN501 and NEU001, through completion of Phase II clinical studies under U.S. FDA IND regulatory requirements. ABVC and NeuCen had also agreed, subject to further negotiation, that ABVC would loan NeuCen $1.0 million through a series of convertible debentures. The second terminated contract was between ABVC BioPharma and Orion Biotech, a Taipei-based affiliate of NeuCen. The second contract, announced on May 25, 2022, called for ABVC BioPharma to identify candidates interested in out-licensing Orion developmental products. Under the terms of this engagement, ABVC was to use its business relationships around the world to identify licensing partners for Orion products and, in return, would receive a monthly retainer fee and 15% of the licensing income and royalties received by Orion for each licensed product. The party’s inability to agree to the final terms of the loan between BioKey and NeuCen led to termination of both contracts on June 6, 2022, effective immediately. “We are disappointed that we will not be working with NeuCen and Orion going forward,” said Dr. Howard Doong, Chief Executive Officer of ABVC BioPharma. “While these agreements were not material to our core mission or our financial strength, they presented opportunities to demonstrate our ability to provide valuable services to the emerging biotech industry in Taiwan.” About ABVC BioPharma ABVC BioPharma is a clinical-stage biopharmaceutical company with an active pipeline of six drugs and one medical device (ABV-1701/Vitargus®) under development. For its drug products, it is focused on utilizing its licensed technology to conduct proof-of-concept trials through Phase II of the clinic...