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- 10-year exclusive worldwide licensing agreement with Thai Phytomed International
- Argent retains ownership of underlying genetics and associated intellectual property
- TPI receives exclusive global commercialisation rights
- Argent to receive a 15% royalty based on profits generated from commercialisation of the licensed genetics
Argent BioPharma (ASX: RGT) has entered into a 10-year exclusive worldwide licensing agreement with Thai Phytomed International (TPI) for the commercial development of four cannabis genotypes owned within the Argent BioPharma Group.
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The transaction forms part of Argent BioPharma’s continuing strategy to extract value from its historical cannabis asset base through capital-efficient licensing arrangements, while focusing the company’s internal scientific and financial resources on its pharmaceutical, immune-modulation and anti-inflammatory development portfolio.
“This agreement is another example of how we intend to unlock value from Argent BioPharma’s historical asset base while continuing to simplify and sharpen the strategic focus of the company,” Roby Zomer, executive chairman, said.
“These genetics represent intellectual property developed within the group over many years. Rather than continuing to deploy Argent’s capital and operational resources toward their commercial development, we believe the appropriate strategy is to place them with a dedicated commercial partner while retaining ownership of the underlying assets and participating in their future success through royalties.
“Importantly, the transaction does not include CannEpil, CimetrA or our pharmaceutical delivery technologies, and we retain the ability to utilise the genetics for internal pharmaceutical research.
“This structure allows Argent to maintain economic exposure to these legacy assets without diverting resources from our core direction as we increasingly focus the company on immune modulation, anti-inflammatory therapeutics and proprietary pharmaceutical intellectual property.”
Under the agreement, TPI receives exclusive worldwide rights to commercially cultivate, propagate, process, extract, manufacture, market, distribute, sell, import and export the licensed genetics and products derived from them, including flower, extracts and cannabinoid active pharmaceutical ingredients, subject to applicable regulatory requirements.
The licence has an initial term of 10 years and may be renewed for a further 10 years on the same terms by written confirmation of both parties.
Four Proprietary Genetics Included
The agreement covers four cannabis genotypes developed and maintained within the Argent BioPharma Group: MXC-THC-10/3; MXC-THC-81/5; MXC-THC-40/3; and MXC-THC-40/2.
RGT was steady at 2.9¢. Mkt cap $3.417M.
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