Argent BioPharma Licenses Proprietary Cannabis Genetics in Global Thai Phytomed Agreement

LONDON / PERTH – Argent BioPharma Ltd. has signed a decade-long exclusive worldwide licensing agreement with Thai Phytomed International (TPI), covering four proprietary Cannabis genotypes developed within the Argent group over several years.

Under the agreement, TPI assumes full operational and financial responsibility for global cultivation, extraction, manufacturing, and distribution of derived products, including dried flower, extracts, and cannabinoid active pharmaceutical ingredients (APIs). In exchange, Argent BioPharma will receive a 15% quarterly calculated royalty based on net profits generated across TPI’s commercial channels and qualifying sublicensing activities.

The 10-year accord, renewable for an additional decade upon mutual agreement, covers four specific genotypes developed within the group: MXC-THC-10/3, MXC-THC-81/5, MXC-THC-40/3, and MXC-THC-40/2. The genetics cover two market-ready profiles of high-THC varieties running 38-42% THC, and balanced strains at roughly equal parts THC and CBD – 12-14% each. Crucially, the contract operates strictly as a commercial license rather than an outright asset transfer:

• Full underlying genetic ownership and IP remain with Argent BioPharma (UK) Ltd.
• Argent retains full rights to utilize the four strains for internal clinical discovery and pharmaceutical formulations.
• The company’s clinical-stage candidates, including CannEpil, as well as proprietary drug delivery mechanisms and clinical dossiers, are entirely excluded from the deal.
• Argent reserves the right to terminate the license if TPI fails to achieve commercial sales within 24 months of receiving the genetic materials.

Roby Zomer, Executive Chairman of Argent, framed the transaction as a deliberate asset-light decision. “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,” Zomer said.

Willy Kruh, Executive Chairman of TPI, pointed to clear commercial demand for both genotype profiles. “The high THC and balanced genetics both represent existing needs in the market which Thai Phytomed International will be positioned to fulfill,” Kruh noted.

The announcement follows Argent’s July 2026 global licensing deal for CannEpil [its cannabinoid therapy for drug-resistant epilepsy], which brought in US$5.5 million upfront from Splash Beverage Group. The TPI arrangement carries no upfront consideration. Every dollar flowing back to Argent depends on TPI first achieving commercialization and generating operating profit across its target markets.

Argent shares fell 13.79% on the day of the announcement – a market response that reflects investor caution toward purely profit-contingent royalty structures, where near-term return visibility is thin and regulatory timelines across multiple jurisdictions remain uncertain.

What this deal clarifies, perhaps more than the deal itself, is Argent’s direction as a company. The Australian biotech offloads Cannabis operational exposure while keeping every layer of IP ownership intact, deliberately decompressing its legacy asset base in favor of pharmaceutical focus. A profit-linked royalty is patient capital. It shields Argent from carrying TPI’s execution risk, but it also means any return on these genetics requires TPI to clear regulatory approvals, build distribution and turn a profit across international markets. That’s a long runway. The 24-month commercial performance clause gives Argent a meaningful backstop, one worth watching as the agreement moves from ink to operations.