Argent BioPharma Jumps 86% After Bold AusCann Acquisition

Argent BioPharma Expands with AusCann Deal

On August 19, Argent BioPharma (ASX: RGT) announced it was buying AusCann’s assets, which include the 100% ownership of the Neuvis drug delivery platform, 48% of CannPal Animal Therapeutics, and part of 20% of ECC Pharm.

This deal gives Argent new technology, more research data, and access to the European market. The company also plans to list its shares in the U.S. as well as on the ASX, which could help it raise more money in the future.

The challenge is that Argent is not yet profitable, so to pay for the deal, it will issue 25 million new shares worth $15 million. That means current shareholders will own a smaller slice of the company. For some investors, this dilution is a concern. For others, it’s a necessary step if Argent wants to grow into a bigger biotech player with global reach.

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Neuvis (100%)  

The acquisition includes Neuvis, a proprietary drug delivery platform that uses cannabinoids like THC to treat pain and related conditions. The technology combines cannabis extracts with other ingredients to create powder capsules that are easy to use, consistent in dosage, and already available through pharmacies. These capsules are expected to play a key role in developing an oral version of Argent’s lead drug, CimetrA.

CannPal Animal Therapeutics Limited (48%) 

CannPal Animal Therapeutics is an Australian company focused on animal health. It develops plant-based treatments backed by research, giving vets and pet owners evidence-based options to improve the health and well-being of animals.

ECC Pharm Limited (19.99%) 

ECC Pharm is an Australian company with operations in Germany and North Macedonia. It develops, produces, and distributes high-quality cannabinoid products across Europe.

The Strategic Synergies Behind Argent’s Acquisition

Argent’s latest acquisition is a big step toward its goal of becoming a fully integrated pharmaceutical company. The deal brings three key advantages:

• Control of the Neuvis drug delivery platform,
• Access to FDA-ready data that supports the CannEpil (Epilepsy therapy) program,
• EU-certified manufacturing capacity.

The Neuvis technology makes oral capsules that are absorbed three to five times better than standard methods, which could improve the effectiveness of CannEpil and CimetrA while giving them patent protection until at least 2038.

Having EU-certified manufacturing means Argent can make its own ingredients and finished products instead of relying on outside suppliers, which could cut production costs by more than half. Supplier payments are a significant expense for the business, with trade payables accounting for 34% of liabilities in the half-year report. The projected 50% reduction in COGS from the acquisition could therefore create a meaningful cost synergy.

The Inflection Point Investors Should Be Watching

The key takeaway for investors is to understand why this acquisition could be valuable. If the AusCann deal helps accelerate the adoption and commercialisation of Argent’s products, it could drive faster revenue growth while also delivering cost savings and a stronger distribution network. 

On the other hand, the company is relying heavily on achieving a U.S. listing, which will be a critical milestone to watch. As a capital-intensive business with significant R&D costs, Argent will need ongoing access to capital markets to fund its growth. This makes the success of the dual listing a potential inflection point for investors. This acquisition is also highly dilutive, as Argent is issuing shares worth more than its current market cap to buy 100% of the company. That makes it a significant risk if the integration does not succeed.