Argent BioPharma has granted Thai Phytomed International exclusive global commercialisation rights to four cannabis genotypes under a 10-year agreement. The deal preserves Argent’s ownership, but royalties depend on TPI generating profitable sales and securing approvals across multiple markets.
- 10-year exclusive worldwide licence to Thai Phytomed International
- Four proprietary cannabis genotypes covered
- Argent retains ownership of the genetics and related intellectual property
- 15% royalty on profits from commercialisation and permitted sublicensing
- TPI funds development and regulatory approvals
Argent Retains Ownership While Handing Over Commercialisation
Argent BioPharma Ltd (ASX:RGT) is outsourcing the global commercial push for four cannabis genotypes to Thai Phytomed International, while keeping the underlying intellectual property in-house. The exclusive licence runs for 10 years, with a further 10-year renewal available if both parties agree in writing.
The agreement gives TPI rights to cultivate, propagate, process, extract, manufacture, market, distribute, sell, import and export the genetics and products derived from them. Those products may include cannabis flower, extracts and cannabinoid active pharmaceutical ingredients, subject to the approvals required in each jurisdiction.
Four Genotypes Form the Licensed Asset Base
The licensed portfolio comprises MXC-THC-10/3, MXC-THC-81/5, MXC-THC-40/3 and MXC-THC-40/2. Argent says the assets were developed and maintained within its group, with ownership remaining in Argent BioPharma (UK) Ltd.
The deal does not include CannEpil®, CimetrA®, Argent’s other pharmaceutical products, clinical dossiers, formulations or proprietary drug-delivery technologies. Argent also retains the right to use the four genetics for internal pharmaceutical research and development, despite granting TPI exclusive commercial rights within the agreed scope.
Royalty Potential Depends on Profitable Sales
Argent will receive 15% of profits generated through commercialisation, calculated quarterly. The royalty applies to sales conducted by TPI, TPI-controlled entities and permitted sublicensees, giving the Australian company a potential recurring income stream without funding the commercial rollout itself.
That income is not guaranteed. The announcement discloses no upfront payment, minimum royalty or sales forecast, and the royalty is calculated on profits rather than gross revenue. TPI must fund development and obtain the cultivation, handling, manufacturing, quality, product, import and export approvals needed in each market. Argent may terminate the licence if no commercial sale occurs within 24 months after the genetic material is delivered.
Non-Core Assets Support Argent’s Pharmaceutical Focus
Argent framed the transaction as part of its effort to monetise historical cannabis assets while concentrating its own resources on pharmaceutical development, immune modulation and anti-inflammatory therapeutics. Executive Chairman Roby Zomer said the structure allows the company to retain ownership and future royalty exposure without continuing to deploy its capital and operating resources on commercial development of the genetics.
TPI Executive Chairman Willy Kruh said the company intends to add the genetics to its library of Thai-grown medical cannabis flower and other products supplied to international markets. TPI described the portfolio as including high-THC genetics in the 38% to 42% range and balanced genetics with 12% to 14% THC and 12% to 14% CBD, although the announcement does not provide a commercial timetable or forecast for those products.
Bottom Line?
The agreement gives Argent a capital-light route to monetise legacy genetics, but its financial value will turn on TPI’s ability to secure approvals, make sales and produce profits within the 24-month commercialisation window.
Questions in the middle?
- When will TPI receive the genetic material and begin commercial sales?
- Which markets and regulatory approvals will TPI prioritise for the four genotypes?
- Will sublicensing or direct sales generate royalties large enough to become material for Argent?