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ABVC BioPharma Executes a Definitive Agreement to Receive License Fees of $3M and Royalties of 2% on Future Revenues
FREMONT, CA - (NewMediaWire) - February 15, 2024 - ABVC BioPharma, Inc. (NASDAQ: ABVC) ("Company"), a clinical-stage biopharmaceutical company developing
About this update from Abvc Biopharma, Inc.
[{"type":"text","content":"FREMONT, CA - (NewMediaWire) - February 15, 2024 - ABVC BioPharma, Inc. (NASDAQ: ABVC) (\"Company\"), a clinical-stage biopharmaceutical company developing therapeutic solutions in Oncology/Hematology, Neurology, and Ophthalmology, announced today that it signed a definitive agreement to license certain of its healthcare-related expertise (\"Know-How\") to Senior Paradise, Inc. (\"SPI\"), who will also lease certain of the Company's properties (the \"Land\") for further development related to the healthcare industry. The lease, SPI may build a long-term care center for the elderly, plant factories, and good agricultural practices (GAP) for botanical drug products and dietary supplements.\nABVC agrees to grant SPI a license to use the Know-How for the healthcare industry. Specifically, ABVC's Know-How will be strategically applied to develop the Land. The Company believes that by integrating its Know-How and Land with SPI's abilities, SPI's healthcare-related endeavors on the Land may achieve tremendous success. Under the agreement, SPI shall pay ABVC $3M as the license fee for the Know-How, in cash or stock, and royalties of 2% on SPI's revenues earned from projects on the Land.\n\"We hope the Land will provide a new revenue stream for ABVC. The Land can be repurposed for commercial or residential development, which we believe will allow ABVC to maximize its value. This strategic initiative optimizes the utilization of available resources,\" said Dr. Uttam Patil, ABVC's Chief Executive Officer. \nAs per a report by Greg Hyland, Head of Capital Markets, Asia Pacific at CBRE, in 2020, life sciences-real estate transactions accounted for just under 4% of global commercial real estate volume, higher than the long-term average of 1.4%, according to RCA, with the U.S. accounting for the bulk of deals. In Asia Pacific, US$675 million worth of life sciences real estate changed hands in the first three quarters of 2021, though up from a low base of less than USD 100 million in 2018, still represents a fraction of the overall total.1\nErik Hill, Managing Director and National Sector Lead of Healthcare and Life Science at Partner Valuation Advisory, pointed out that Investors have come to appreciate the recession-resistant returns offered by healthcare real estate.2\nABVC urges its shareholders to sign up for the latest news alerts on the ...