ABVC BioPharma Enters Into $3.0 Million Clinical Services Contract with NeuCen BioMed
FREMONT, CA, May 03, 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 BioKey, a wholly-owned subsidiary of the company based in Fremont, California, has entered into a $3.0 million clinical services contract with NeuCen BioMed Co. Ltd. to guide two NeuCen drug products, CEN501 and NEU001, through completion of Phase II clinical studies under U.S. FDA IND regulatory requirements.
CEN501 is a nasal strip product used as a local nasal immunotherapy (LNIT) for the treatment of mite-induced allergic rhinitis patients. Clinical effectiveness and safety of CEN501 have been tested and proven in two early clinical trials in Taiwan. NEU001 is a novel drug entity that has received orphan-drug designation from the U.S. FDA for the treatment of nasopharyngeal carcinoma.
Under the terms of the contract, BioKey will receive payments totaling $3.0 million over a 3-year period with each payment amount to be determined by certain regulatory milestones obtained in connection with CEN501. BioKey’s management team is confident that, based upon their initial examination, CEN501 is likely to successfully complete Phases I and II within the 3-year contract period. In a separate agreement, BioKey’s parent company, ABVC BioPharma, and certain ABVC affiliates expect to provide a $1.0 million loan to NeuCen through a series of convertible debentures that, if fully converted, will result in ABVC owning approximately 9% of NeuCen.
“We are pleased to enter into this clinical service contract with NeuCen BioMed to advance two promising drug products, CEN501 and NEU001, using BioKey’s clinical and regulatory capabilities,” said Dr. Howard Doong, Chief Executive Officer of ABVC BioPharma. “We expect this contract, together with the recently executed agreement with Define BioTech to purchase $800,000 of our maitake dietary supplement over the next year, will allow BioKey to achieve financial profitability earlier in 2022 than anticipated.”
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.
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