Argent BioPharma reported a significantly reduced half-year loss of A$2.9 million, progressing a strategic acquisition to bolster its CannEpil drug pipeline and securing up to A$11 million in new funding.
- Half-year net loss narrowed to A$2.9 million from A$12.2 million
- Binding agreement signed to acquire AusCann assets, advancing CannEpil
- Positive US in vivo study supports ArtemiC™ efficacy in viral inflammation
- EU-GMP cannabinoid API supply commenced at leading EU hospital
- Convertible securities financing facility of up to A$11 million secured
Financial Performance and Strategic Shift
Argent BioPharma Ltd has reported a marked improvement in its financial results for the half-year ended 31 December 2025, with a net loss of A$2.9 million compared to a substantial A$12.2 million loss in the prior corresponding period. This reduction reflects the company’s ongoing efforts to streamline operations and focus on its core pharmaceutical development programs.
Notably, Argent made a strategic decision to cease manufacturing activities at its Slovenian and Maltese facilities, resulting in the liquidation of its Slovenian subsidiary and associated asset impairments. This move aligns with the company’s broader strategy to concentrate resources on research and development, particularly its lead drug candidates.
Advancing CannEpil Through AusCann Asset Acquisition
In a significant development, Argent signed a binding agreement to acquire key assets from AusCann Group Holdings Ltd, aimed at advancing its CannEpil drug candidate. The revised transaction includes acquiring AusCann’s 48% stake in CannPal Animal Therapeutics Pty Ltd and securing an option for full ownership of the Neuvis® drug-delivery platform. This acquisition is expected to enhance Argent’s clinical pipeline, intellectual property portfolio, and early commercialisation pathways.
The deal is subject to shareholder approval, with completion anticipated in early Q2 2026. This strategic acquisition underscores Argent’s commitment to strengthening its position in cannabinoid-based therapies, particularly for neurological indications.
Clinical Validation and Market Progress
Supporting Argent’s clinical ambitions, an independent in vivo study conducted by the University of South Florida demonstrated ArtemiC™’s efficacy in a severe viral inflammatory model, showing up to 85% survival in treated subjects versus none in controls. ArtemiC™, the U.S. OTC brand name for CimetrA®, is a nano-formulated immunomodulator targeting Acute Respiratory Distress Syndrome and related conditions, with a strong safety profile and consistent therapeutic benefits.
Additionally, Argent commenced the supply of EU-GMP cannabinoid active pharmaceutical ingredient (API) to the University Medical Centre Ljubljana, transitioning from pilot to routine hospital use for drug-resistant epilepsy treatment. This milestone opens new commercial opportunities within European hospital networks.
Further bolstering its clinical credentials, Argent published a peer-reviewed case study highlighting CannEpil®’s therapeutic potential in managing treatment-resistant epilepsy, particularly Lennox-Gastaut Syndrome. The study detailed significant improvements in seizure control and quality of life for a pediatric patient, reinforcing the value of pharmaceutical-grade cannabinoid isolate formulations.
Funding and Financial Position
To support its strategic initiatives and operational needs, Argent secured a convertible securities financing facility of up to A$11 million from US-based institutional investors, including C/M Capital Master Fund, LP and WVP Emerging Manager Onshore Fund LLC. An initial drawdown of A$3 million was completed during the period, providing critical working capital and funding for the AusCann acquisition.
Despite the improved financial position, the company faces a net working capital deficit and a material uncertainty regarding its ability to continue as a going concern. The directors remain confident in raising additional capital and restructuring convertible note terms to support ongoing activities.
Bottom Line?
Argent BioPharma’s strategic acquisitions and clinical progress set the stage for a pivotal 2026, but funding and operational challenges remain key watchpoints.
Questions in the middle?
- Will shareholder approval for the AusCann asset acquisition proceed smoothly in Q2 2026?
- How will Argent manage potential dilution and conversion terms related to its convertible notes?
- What are the next clinical milestones and regulatory pathways for ArtemiC™ and CannEpil?