ABVC BioPharma has received a $145,950 licensing payment from OncoX BioPharma, bringing its total receipts from OncoX in the third quarter to $595,950 and consolidated licensing revenues from all strategic partners to $1.28 million. These revenues, generated through partnerships with AiBtl BioPharma, ForSeeCon Eye Corporation, and OncoX, carry minimal incremental operating costs as development expenses were largely incurred in prior years, directly strengthening the company's cash position and profitability profile.
Dr. Uttam Patil, ABVC's Chief Executive Officer, stated that these milestone revenues underscore the strength and reliability of the company's licensing framework. OncoX currently has four IND-approved oncology assets licensed from ABVC and is actively expanding its portfolio, including the anticipated acquisition of the Lycogen® lycopene platform, which targets a global market projected to reach $187 million by 2030 according to Allied Market Research. This expansion positions OncoX as a long-term value generator for ABVC.
The licensing model represents a high-margin business strategy for ABVC, with total potential deal proceeds from OncoX alone estimated at $105 million if all milestone payments are achieved. This approach allows ABVC to leverage its pipeline of six drugs and one medical device under development, utilizing technology from research institutions such as Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center. The company's ability to generate significant licensing revenue with minimal additional costs highlights the efficiency and scalability of its business model in the competitive biopharmaceutical industry.
