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 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 clinical development process at world-famous research institutions (such as Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center). For Vitargus®, the company intends to conduct the clinical trials through Phase III at various locations throughout the globe.
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. 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.
Contact:
ICR, LLC
Lucy Peng
Phone: +1 646-677-1872
Email: Lucy.Peng@icrinc.com
