ABVC BioPharma Receives Additional $250,000 Payment in Vitargus® Licensing Deal Valued Up to $33.5 Million

ABVC BioPharma, Inc. has received an additional US$250,000 payment from ForSeeCon Eye Corporation under their existing ophthalmic medical device licensing agreement, bringing cumulative payments to US$816,000. The total licensing fee potential reaches US$33.5 million, consisting of US$30 million in upfront payment through ForSeeCon shares valued at US$6 per share and an additional US$3.5 million milestone payment due upon completion of the next fundraising round. The agreement also includes royalties of 5% of net sales, capped at US$60 million, creating a maximum potential value of US$93.5 million for the Vitargus® technology.

The company provided a comparison between its investigational vitreous substitute Vitargus® and traditional silicone oil, highlighting potential advantages of the bioabsorbable hydrogel technology. Unlike silicone oil, which requires surgical removal and often necessitates face-down positioning post-operation, Vitargus® is designed to be gradually absorbed by the body without requiring secondary surgery. While silicone oil carries potential long-term issues such as emulsification and elevated intraocular pressure, early data suggests Vitargus® demonstrates biocompatibility. Industry resources like Retina Today provide additional context about working with traditional silicone oil treatments.

Dr. Uttam Patil, ABVC's Chief Executive Officer, emphasized that the payments provide meaningful support for advancing the company's ophthalmic programs and reflect ForSeeCon's long-term commitment to the technology. Market analysis indicates significant growth potential in the ophthalmic sector, with the global vitreous substitute market projected to expand from approximately US$2.5 billion in 2024 to US$3.61 billion by 2032, representing a 6.3% compound annual growth rate. The broader ophthalmic medical device market is estimated to grow from US$63 billion to more than US$95 billion during the same period, according to research available at Verified Market Research.

Part of the received payments will support establishing ABVC's Ophthalmic Research and Quality Verification Laboratory near the Hsinchu Science Park in Taiwan. This facility is intended to assist with future clinical evaluations, AI-enabled image analysis, and product quality verification initiatives as the company progresses Vitargus® through clinical development. The company plans to conduct pivotal Phase III clinical trials for Vitargus® through global partnerships, positioning the technology to potentially address limitations of current vitreous substitute treatments in the expanding ophthalmic market.