Fremont, CA – 
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 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.
Forward-Looking Statements
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