Argent BioPharma (ASX: RGT) Licences NLC Antiviral Portfolio

Argent BioPharma has secured an exclusive, royalty-bearing licence to commercialise antiviral applications associated with NLC’s Tollovir, Tollovid and NutraVir products, expanding its portfolio beyond the CimetrA immune-modulation platform.

The licence covers markets worldwide except China, although existing TolloHealth rights for Tollovid products in the United States remain in place. Argent will commercialise the portfolio alongside CimetrA, with the company expecting to share commercialisation costs across the two programs.

The agreement follows Argent’s move to a partnered licensing model for CannEpil and sharpens its focus on immune modulation, inflammatory disease and commercial-stage products.

Licence carries fixed fees, royalties and milestones

Argent will pay NLC US$15,000 a month for 20 months, representing US$300,000 in scheduled base licence fees. The fee may be increased by mutual written agreement following an annual review, while Argent will also reimburse US$30,000 plus VAT in legal expenses.

Royalties apply separately to each of Tollovir, Tollovid and NutraVir. NLC will receive 12% of the first US$2.5 million in cumulative net sales for each product, 9% of the next US$2.5 million and 6% thereafter.

NLC is also entitled to US$100,000 when aggregate cumulative net sales across the licensed portfolio reach US$2.5 million, followed by another US$125,000 at US$5 million.

Subject to shareholder approval, Argent will issue two million performance rights to NLC. One million rights will vest at each sales milestone and convert into ordinary shares on a one-for-one basis. If approval is not obtained, the parties will negotiate alternative consideration of substantially equivalent value.

The sales thresholds are contractual payment triggers rather than company revenue forecasts. The agreement runs until August 2030 unless terminated earlier or extended.

Commercial rights do not extend to drug development

Argent receives the relevant formulations, data, trade secrets and know-how, as well as substantially all existing NutraVir inventory for US$1. NLC retains ownership of the underlying products, intellectual property and improvements.

The licence is limited to commercialisation. Any pharmaceutical development would require separate rights, formulation-specific evidence and applicable regulatory approvals. The Tollovir clinical-trial formulation known as NLCV-001 is expressly excluded.

NutraVir is presented as a dietary supplement and is not intended to diagnose, treat, cure or prevent disease. Argent also acknowledged that the research in NLC’s scientific materials does not establish clinical efficacy for treating viral infection or autoimmune disease, while the identified patents do not amount to regulatory approval or evidence of safety or efficacy.

Argent gains a 60-day right of first negotiation over new antiviral intellectual property developed or acquired by NLC or Dr Dorit Arad during the agreement’s term where it is related to the licensed products. Commercial outcomes will depend on funding, market access, demand, regulatory requirements and execution, and there is no assurance that the sales milestones will be reached.