BioLite Receives Milestone Payment in Botanical Drug Partnership Targeting Depression and ADHD Markets

BioLite, Inc., a subsidiary of ABVC BioPharma, received a $230,000 milestone payment from AiBtl BioPharma as part of their strategic licensing agreement for botanical-derived drug candidates ABV-1504 and ABV-1505. These compounds target Major Depressive Disorder and Attention-Deficit/Hyperactivity Disorder, representing significant advancements in psychiatric treatment options. The payment marks continued progress in the collaboration, with BioLite having received $230,000 cumulatively and remaining eligible for up to $7 million in future cash milestone payments. ABVC, as majority owner and co-licensor, has separately received $350,000 to date and could receive up to $6.65 million additional payments. Combined, the ABVC group could benefit from up to $13.42 million in future cash payments if all milestones are achieved.

Beyond cash considerations, the licensing agreement includes substantial equity components. AiBtl issued 46 million common shares, with 23 million shares allocated to ABVC and 23 million to BioLite. When combining potential milestone payments, equity stakes, and future royalties, the transaction could represent approximately $667 million in total value based on internal valuations. The partnership addresses substantial market opportunities in CNS botanical drugs. The anxiety and depression treatment market was valued at approximately $15.4 billion in 2024 and is projected to reach $19.3 billion by 2030. Similarly, the ADHD therapeutics market reached $14.3 billion in 2023 and is expected to grow to $18.6 billion by 2030.

These markets serve critical unmet medical needs. The World Health Organization reports depression affects more than 380 million people globally, while the Centers for Disease Control and Prevention identifies ADHD as affecting 9.8% of U.S. children. Dr. Uttam Patil, ABVC's Chief Executive Officer, emphasized the significance of the milestone payment, noting that depression and ADHD represent major global health challenges. The collaboration aims to explore safe and effective botanical-based treatment options that could expand therapeutic choices for patients worldwide.

The licensing partnership positions ABVC to potentially become a frontrunner in botanical CNS therapies, combining potential cash inflows, equity stakes, and access to multi-billion-dollar market opportunities. This strategic approach could strengthen the company's balance sheet while pursuing transformational long-term value for shareholders through innovative psychiatric treatments. The development of botanical-derived alternatives to conventional pharmaceuticals represents an important diversification in treatment approaches, particularly given the growing demand for mental health solutions and concerns about side effects associated with some existing medications. The financial structure of the agreement, with its combination of immediate payments, future milestones, and equity participation, creates multiple pathways for value creation while mitigating risk through partnership rather than sole development. As mental health awareness continues to increase globally, and as healthcare systems seek more cost-effective treatment options, botanical-based therapies could gain significant traction in both developed and emerging markets where traditional pharmaceutical approaches may be less accessible or culturally acceptable.