Tetratherix locks in flat 2.5% royalty with University of Sydney
Tetratherix Limited (ASX: TTX) has executed a new Revenue Sharing Agreement with the University of Sydney, effective from 1 July 2026. The partnership began with Dr Ali Fathi’s foundational research into the Tetramatrix™ platform at the University during his PhD.
Under the agreement, the University will receive a flat royalty of 2.5% of net product revenue across TTX’s product sales, for a fixed term to 30 June 2036.
The company says the arrangement gives both parties a clear and predictable basis for payments over the next decade and reduces administrative complexity.
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What the new agreement replaces
The agreement replaces the previous royalty and reporting obligations summarised in section 7.3(c) of TTX’s Prospectus dated 4 June 2025 with a single, simplified framework. Three structures are replaced:
- the previous tiered royalty
- the licence fee royalty
- the indexed minimum royalty
The agreement also aligns the University’s returns with the commercial success of the Tetramatrix™ platform as TTX and its partners bring products to market.
Beyond the polymer platform itself, products such as the Tutelix hydrogel spacer are heading into a 240-patient pivotal trial across Australia and the United States, which is the pathway that would turn those product sales into royalty-bearing revenue.
Management view on margins and certainty
Will Knox said the single royalty is intended to strengthen the company’s near-term financial position and margin profile.
Will Knox
“The new single, flat royalty reduces the royalties payable on licensing revenues, strengthening our P&L in the near term and the overall margin profile as our first products reach market…”
Knox added that the arrangement gives TTX certainty over margins for the next decade and allows clear financial modelling for its partners and investors.
He described Tetramatrix™ as a product of Australian science, with products now moving towards markets in the United States and beyond. The continued partnership will help foster the local ecosystem, and TTX looks forward to further collaboration with the University.
The first commercial polymer shipment to the US partner Superpower Health marks the start of product supply revenue, which sits alongside licence income and is the stream a flat royalty applies to.
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