ABVC BioPharma, Inc. announced that the company together with BioLite, Inc. and Rgene Corporation entered into a term sheet with OncoX BioPharma, Inc. (OncoX) for the company's Oncology/Hematology pipeline (the Licensed Products). Subject to negotiation and execution of the definitive agreement, this license would cover the Licensed Products' clinical trial, registration, manufacturing, supply, and distribution rights. ABVC is set to receive $50,000,000 as licensing fees in the form of Cash/Shares within 30 days of execution of the Definitive Agreement, with an additional milestone payment of $5,000,000 in cash after the first fundraising round and Royalties of 5% of net sales, up to $50,000,000, after the launch of the Licensed Products.

The United States Food & Drug Administration (US FDA) has approved four INDs: ABV-1519 (IND 129575) for Triple Negative Breast Cancer (TNBC), ABV-1501 (IND 161602) for Non-Small Cell Lung Cancer (NSCLC), ABV-1702 (IND 131300) for Myelodysplastic Syndrome (MDS), and ABV-1703 (IND 136309) for Pancreatic Cancer Therapy. The Investigational New Drug (IND) application proposed the clinical investigation of BLEX 404 as the primary active ingredient. The active ingredient of BLEX 404 is the b-glucan extracted from Grifola frondosa (maitake mushrooms), an edible fungus with high medical and commercial values in Asia; it contains various bioactive constituents such as polysaccharides, pyrrole alkaloids, ergosterol, etc., and has been widely served as functional foods for a long time in daily life.

Under the proposed agreement, ABVC would grant OncoX an exclusive global rights license to develop and commercialize the Licensed Products within the Field of Use. ABVC would also grant OncoX the right to publicense to a third party, pre-agreed by ABVC. ABVC would be responsible for securing the supply of the Licensed Products to OncoX with an agreed price and quantity.

In contrast, OncoX would secure the purchase of the Licensed Products from ABVC with a committed volume. OncoX would be responsible for completing the regulatory filing of IND.