Argent BioPharma expands antiviral portfolio with global NLC licence
Argent BioPharma (ASX: RGT) has entered into a licence agreement with NLC Ltd., NLC Viral Defense, LLC and Dr. Dorit Arad, securing exclusive, royalty-bearing commercialisation rights to the antiviral applications of Tollovir (excluding NLCV-001), Tollovid and NutraVir. The licence extends worldwide, excluding China, with existing TolloHealth LLC rights over Tollovid products in the United States preserved, and the Tollovid trade name licensed for use outside the United States.
This move deliberately expands the company’s portfolio alongside CimetrA®, following the transition of CannEpil® to a partnered licensing model. Rather than a shift in direction, it reflects a sharpening of Argent’s immune-modulation focus, with commercialisation costs for the NLC programme to be shared with the CimetrA® programme.
The CannEpil global licensing deal, which transferred commercialisation rights to NYSE-listed Splash Beverage Group in exchange for US$5.5 million in debt forgiveness, established the strategic template that the NLC transaction now follows: retaining IP ownership and royalty income while offloading development execution to a dedicated partner.
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What Argent is licencing and why it fits
The three licensed products span antiviral formulations and a dietary supplement, each rooted in NLC’s work on botanical compounds and viral protease research:
- Tollovir — an antiviral formulation derived from botanical compounds and viral protease research; the clinical-trial formulation NLCV-001, which contains a different concentration of Shikonin 95%, is explicitly excluded from the licence scope.
- Tollovid — an antiviral formulation with commercialisation rights granted for use outside the United States; existing TolloHealth LLC rights within the United States are preserved.
- NutraVir — positioned as a dietary supplement. Its label states it is not intended to diagnose, treat, cure or prevent disease. This supplement positioning is distinct from any future pharmaceutical development programme.
The intellectual property schedule covers US Patent No. 11,857,517 (“Compounds for Treating Coronavirus Infection”), PCT/IL2025/050199 published as WO2025/181810 (“Botanical Antiviral Composition”), and trademark records for TOLLOVID, NLC-V, Todos Medical and NutraVir.
The strategic logic centres on biology: viral infection and the host inflammatory response are closely linked, making the NLC portfolio a direct complement to CimetrA®’s immune-modulation focus. Argent also receives a 60-day right of first negotiation over new antiviral intellectual property developed or acquired by NLC or Dr. Arad during the term, but only where that IP is derivative of or related to the Licensed Products. This right does not extend to inflammation, oncology, fibrosis, anti-ageing, neurodegenerative or metabolic applications.
What is a royalty-bearing commercialisation licence?
A commercialisation licence grants the right to sell and market products developed by another party, in exchange for ongoing royalty payments on sales. It allows a company to access a developed product without bearing the full cost of original development. Under this agreement, Argent’s rights are limited to commercialisation of the Licensed Products. Any pharmaceutical development of the licensed products would require separate written rights from NLC, formulation-specific evidence and applicable regulatory approvals.
Commercial structure — how the deal works
The agreement combines upfront fees, tiered royalties and milestone-linked equity. The table below sets out the material commercial terms.
| Term | Trigger / Basis | Amount / Rate | Notes |
|---|---|---|---|
| Monthly licence fee | From execution, for 20 months | US$15,000/month | Eligible patent-maintenance payments by Argent reduce royalties payable dollar-for-dollar |
| First sales milestone | US$2.5M aggregate cumulative Net Sales | US$100,000 cash + 1,000,000 Performance Rights vest | Subject to shareholder approval; Performance Rights automatically convert into ordinary shares on a one-for-one basis |
| Second sales milestone | US$5M aggregate cumulative Net Sales | US$125,000 cash + 1,000,000 Performance Rights vest | Subject to shareholder approval; same conversion terms as above |
| Royalty rate (Tollovir, Tollovid and NutraVir separately) | Tiered on cumulative Net Sales per product | 12% (first US$2.5M) → 9% (next US$2.5M) → 6% thereafter | Applied independently to each of the three licensed products |
Argent also purchased substantially all existing NutraVir inventory for US$1.00, providing an immediate commercial foundation. The agreement runs until August 2030, with extension by mutual written agreement possible.
The sales milestones are contractual payment triggers only and do not constitute revenue forecasts or guarantees. The 2,000,000 Performance Rights in total (1,000,000 at each milestone) are subject to shareholder approval, which the company will use commercially reasonable efforts to obtain within 120 days of execution. If approval is not obtained, the parties will negotiate in good faith alternative consideration of substantially equivalent value, which may include cash payable only when the relevant milestone is satisfied.
What management says and what comes next
Roby Zomer, Executive Chairman
“This agreement is an important step in building Argent’s next chapter. Following the CannEpil® licensing transaction, we are bringing greater focus to immune modulation and inflammatory disease, with CimetrA® at the centre of our development strategy. The NLC portfolio adds complementary antiviral opportunities and gives us a broader foundation from which to pursue commercial growth and long-term pharmaceutical value.”
Jonathan Grunfeld, Vice President of Medical Development
“What excites us is the opportunity to bring NLC’s antiviral science and immune modulation into a commercial strategy alongside Argent’s immune-modulation expertise. Viral infection and the body’s inflammatory response are closely linked and understanding both is central to tackling their impact on patients. Bringing the NLC portfolio alongside CimetrA® broadens our scientific perspective and strengthens our ambition to develop therapies that address important aspects of disease, from the infectious trigger to the host response. This is a compelling direction for Argent’s medical development.”
Argent’s stated strategy combines proprietary IP, commercial-stage products, strategic licensing and royalty income within a capital-efficient model. The company has also identified expansion into the United States capital markets as a strategic ambition. As the announcement makes clear, however, commercial outcomes will depend on funding, market access, product demand, applicable regulatory requirements and execution of the commercialisation plan. There is no assurance that the contractual sales milestones will be achieved or that pharmaceutical approvals will be obtained.
Argent’s appetite for royalty income within a capital-efficient model is also visible in its five-year exclusive Aquiol licensing arrangement with MGC Derma, which adds a fixed monthly fee plus a 5% revenue-linked royalty to the company’s income profile without requiring new IP development.
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