ABVC BioPharma Introduces Dietary Supplement Based on Maitake Mushroom, Enters into $3.0 Million Distribution Agreement
10 December 2021 - 12:30AM
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, will produce dietary supplements
derived from the maitake mushroom in both tablet and liquid forms.
The maitake mushroom is rich in bioactive polysaccharides,
especially beta-glucans. Beta-glucans in maitake mushrooms have
been found to reduce cholesterol, resulting in improved artery
functionality and overall better cardiovascular health, which tends
to lower the risk of heart disease and provide immune system
support.In addition, BioKey has entered into a three-year
distribution agreement with Define Biotech Co. Ltd., a Taiwan-based
pharmaceutical marketing company that focuses on sales of drugs,
dietary supplements and medical products in the Asia-Pacific
region. The agreement grants Define Biotech the exclusive right to
distribute this new dietary supplement in China and Taiwan in
exchange for the commitment to purchase $3.0 million worth of the
new product over the three-year period. BioKey will
manufacture the supplements at its GMP manufacturing facility in
Fremont, California. Further, the company entered into a contract
to grow maitake mushrooms in a humid, temperature-controlled
environment free of pesticides and chemicals. Although many
mushroom-based supplements are available on the market today,
BioKey believes this new line has significant competitive advantage
given (a) the purity and consistency of the mushrooms used by
BioKey surpass those used in existing maitake mushroom supplements
currently on the market and (b) the extraction process BioKey
employs delivers a particularly strong dose.“Although dietary
supplements are not key to our strategic business model, in light
of the COVID-19 pandemic, the global demand for immunity-boosting
products has increased significantly,” said Dr. Howard Doong, Chief
Executive Officer of ABVC BioPharma. “Taking advantage of our
existing technology and manufacturing expertise, we have produced a
superior immune strengthening dietary supplement product using the
maitake mushroom. Based on the distribution agreement with Define
Biotech alone, we expect our subsidiary in California to achieve
financial profitability by the end of 2022.”Studies have shown the
beta-glucans in maitake mushroom to strengthen the immune system.
In a clinical trial on postmenopausal breast cancer patients, oral
administration of the maitake extract demonstrated immunomodulatory
effects. In addition, a separate clinical trial found maitake
extracts to enhance neutrophil and monocyte function in patients
with myelodysplastic syndrome, boosting production of lymphokines
(protein mediators) and interleukins (secreted proteins), and
demonstrated improved immune response. Further, clinical trials
have shown beta-glucans to lower blood glucose levels, thereby
helping to activate insulin receptors, while reducing insulin
resistance in diabetes management.The global dietary supplements
market size was valued at $140.3 billion in 2020 and is expected to
expand at a compound annual growth rate (CAGR) of 8.6% from 2021 to
2028 (Grand View Research, February 2021). Botanicals held the
second largest share within the dietary supplement category in
2020 and are expected to witness significant growth over the
forecast period. Immunity-boosting herbs witnessed a surge in
demand in 2020 with a steady growth trend expected to continue for
the foreseeable future.About ABVC BioPharmaABVC 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. Forward-Looking StatementsThis press release contains
“forward-looking statements.” Such statements may be preceded by
the words “intends,” “may,” “will,” “plans,” “expects,”
“anticipates,” “projects,” “predicts,” “estimates,” “aims,”
“believes,” “hopes,” “potential,” or similar words. Forward-looking
statements are not guarantees of future performance, are based on
certain assumptions, and are subject to various known and unknown
risks and uncertainties, many of which are beyond the Company’s
control, and cannot be predicted or quantified, and, consequently,
actual results may differ materially from those expressed or
implied by such forward-looking statements. Such risks and
uncertainties include, without limitation, risks and uncertainties
associated with (i) our inability to manufacture our product
candidates on a commercial scale on our own, or in collaboration
with third parties; (ii) difficulties in obtaining financing on
commercially reasonable terms; (iii) changes in the size and nature
of our competition; (iv) loss of one or more key executives or
scientists; and (v) difficulties in securing regulatory approval to
proceed to the next level of the clinical trials or to market our
product candidates. More detailed information about the Company and
the risk factors that may affect the realization of forward-looking
statements is set forth in the Company’s filings with the
Securities and Exchange Commission (SEC), including the Company’s
Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
Investors are urged to read these documents free of charge on the
SEC’s website at http://www.sec.gov. The Company assumes no
obligation to publicly update or revise its forward-looking
statements as a result of new information, future events or
otherwise.ContactICR, LLC Lucy PengPhone: +1
646-677-1872Email: Lucy.Peng@icrinc.com
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