The stock price of ABVC Biopharma (NASDAQ: ABVC) made further gains in Friday trading, extending weekly gains by a further 20%. The clinal-stage biopharmaceutical company recently announced an exciting venture agreement with Tokyo-based Lucidam, a private investment firm.
The news has had a trickle effect on the market, with a slight delay on the expected bull rush, seeing gains increase dramatically 2-3 days after the initial news release. Whether investors were skeptical, cautious, or just late to the party, it’s a different story in premarket trading today – the venture deal is starting to fuel the fires of ABVC, currently holding gains of just under 20%.
Details of the agreement include calls for business development collaboration through Lucidam affiliate BioLite Japan. BioLite will aim to identify early-stage opportunities in the drug development space as well as digital health and technological innovation in medical devices.
As far as ownership is concerned, ABVC will maintain equity ownership of BioLite Japan at 49%, with Lucidam holding the other 51%.
It isn’t that surprising that investors took to this deal with vigor, regardless of a slight delay. The partnership has the potential to drive innovation in this space, whilst creating a cohesive corporate frame that serves ABVC’S best interests.
CEO of ABVC, Dr. Howard Doong speaks on the fruitful potential of the partnership:
“This joint venture should allow us to further ensure access to additional early-stage product candidates that we otherwise would not have access to without this partnership. Dr. Seo has a distinguished career in healthcare and business in Japan and Asia and will play a significant role in expanding our pipeline at an accelerated pace.”
The ABVC Pharma stock price is pushing the $3 mark entering into Friday’s market open, recoding gains of over 25%.
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