ABVC BioPharma to Distribute AiBtl Shares as Maiden Dividend, Signaling Management's Conviction in Subsidiary's Potential

ABVC BioPharma, Inc. (NASDAQ: ABVC), a clinical-stage biopharmaceutical developer focused on ophthalmology, CNS disorders, and oncology/hematology therapeutics, has received Board approval to execute its first-ever shareholder dividend distribution. The initiative centers on distributing shares of AiBtl BioPharma Inc., a Delaware-incorporated subsidiary in which ABVC maintains a 57.8% stake, with approximately 15 million AiBtl shares earmarked for distribution pending SEC registration clearance.

Strategic Rationale Behind the Dividend Move

The decision reflects management’s confidence in AiBtl’s trajectory and underscores ABVC’s commitment to returning value to shareholders. “This milestone represents our belief in AiBtl’s long-term commercial prospects and our dedication to creating tangible shareholder returns,” noted Dr. Uttam Patil, Chief Executive Officer of ABVC BioPharma. The dividend serves a dual purpose: rewarding existing shareholders while establishing clear valuation markers for the emerging biotech entity.

AiBtl’s Market Focus and Development Pipeline

AiBtl BioPharma operates as ABVC’s vehicle for capturing Asian pharmaceutical markets, with particular emphasis on botanical-derived CNS therapeutics. The subsidiary is advancing drug candidates derived from Polygala tenuifolia, a traditional medicinal plant, targeting major depressive disorder (MDD) and attention-deficit/hyperactivity disorder (ADHD). AiBtl’s strategy combines ethnobotanical research methodologies with contemporary clinical validation frameworks, positioning the company to engage late-stage partnerships with international pharmaceutical entities for commercialization pathways.

ABVC’s Broader Development Portfolio

Beyond its AiBtl holding, ABVC maintains an active pipeline encompassing six pharmaceutical candidates and one FDA-regulated medical device—Vitargus®—across multiple clinical development phases. The company leverages licensing agreements and collaborative research relationships with prestigious institutions including Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center to advance proof-of-concept and Phase II investigations. Pivotal Phase III trials for Vitargus® are being structured through global partnership frameworks.

Regulatory Pathway and Forward Considerations

Distribution execution remains contingent upon successful registration of AiBtl shares under the Securities Act of 1933, with no assurance of approval timeline. ABVC’s disclosures to the Securities and Exchange Commission contain comprehensive details regarding the subsidiary relationship and associated licensing arrangements. Management acknowledges the inherent risks accompanying clinical-stage biopharmaceutical development, including manufacturing scalability challenges, financing constraints, competitive dynamics, key personnel retention, and regulatory approval uncertainties. Investors are encouraged to review SEC filings on Form 10-K and Form 10-Q for comprehensive risk assessments.