Shares in Argent BioPharma (ASX:RGT) have surged 45% after the company expanded the global licensing agreement for its lead cannabinoid therapy, CannEpil®, into the veterinary healthcare market.
The amendment creates a second commercial pathway for the epilepsy treatment, adding a new long-term royalty stream while preserving Argent’s existing human healthcare economics and ownership of the underlying asset.
A bigger market, more royalties
Under the revised agreement, Argent retains its existing 15% perpetual royalty on future human therapeutic sales of CannEpil®, while introducing a new 10% perpetual royalty for veterinary applications.
Importantly, the company continues to own all CannEpil® intellectual property, manufacturing know-how and regulatory assets, allowing it to benefit from both royalty income and future manufacturing revenues across two healthcare sectors.
U.S. animal health opportunity opens
Licensing partner Splash Beverage Group intends to work with Lupvindol UK Limited to advance CannEpil® through the U.S. FDA’s Center for Veterinary Medicine, targeting the Investigational New Animal Drug (INAD) and Conditional Approval pathways.
The move establishes a defined regulatory roadmap into the U.S. veterinary pharmaceutical market, opening a new commercial opportunity beyond CannEpil’s existing focus on drug-resistant epilepsy in humans.
What’s next?
The expansion strengthens what was already a significant licensing deal by diversifying CannEpil’s commercial potential without diluting Argent’s ownership position.
With royalty streams now spanning both human and veterinary markets, and manufacturing remaining in-house, the company is steadily building a recurring revenue model around its flagship cannabinoid therapy.
