FREMONT, CA, Feb. 15, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire -- 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.
ABVC 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.
"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.
As 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
Erik 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
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https://abvcpharma.com/?page_id=17707
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, 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, the University of California at San Francisco, and Cedars-Sinai Medical Center. For Vitargus®, the Company intends to conduct global clinical trials through Phase III.
About Senior Paradise, Inc.
Senior Paradise, Inc. is a Cayman registered Company working on real estate development in the healthcare sector for senior care. We will work with ABVC on this collaborative project in the Asian Special Economic Zone to develop good agricultural practices for the raw material of new botanical drugs to supply the global markets.
Forward-Looking Statements
This press release contains "forward-looking statements." The words may precede such statements "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.
Contact:
Leeds Chow
Email: leedschow@ambrivis.com
