Tetratherix Limited (ASX:TTX) has executed a new Revenue Sharing Agreement with the University of Sydney, effective from 1 July 2026, replacing the previous tiered royalty, licence fee royalty and indexed minimum royalty obligations with a single flat royalty of 2.5% of net product revenue across TTX's product sales through to 30 June 2036.

Key Points

  • Tetratherix has executed a Revenue Sharing Agreement with the University of Sydney, effective 1 July 2026.
  • The new agreement sets a flat royalty of 2.5% of net product revenue for a fixed term ending 30 June 2036.
  • The agreement replaces the previous tiered royalty, licence fee royalty and indexed minimum royalty outlined in TTX's Prospectus dated 4 June 2025.
  • The new framework is described in the filing as reducing administrative complexity and providing a clear and predictable basis for payments over the next decade.

Revenue Sharing Agreement Terms and Structure

Under the new Revenue Sharing Agreement, the University of Sydney will receive a flat royalty of 2.5% of net product revenue across Tetratherix's product sales for a fixed term running to 30 June 2036. The agreement replaces the previous royalty and reporting obligations summarised in section 7.3(c) of TTX's Prospectus dated 4 June 2025, consolidating what were previously tiered royalty, licence fee royalty and indexed minimum royalty arrangements into a single simplified framework. The filing states the agreement gives both parties a clear and predictable basis for payments and reduces administrative complexity.

Replacement of Previous Prospectus Royalty Obligations

The previous royalty structure, as described in the TTX Prospectus dated 4 June 2025, included a tiered royalty, a licence fee royalty and an indexed minimum royalty. The new agreement, effective from 1 July 2026, supersedes all of these with a single flat rate applied to net product revenue. According to the filing, the new arrangement aligns the University's returns with the commercial success of the Tetromatrix™ platform as TTX and its partners bring products to market, and allows for clear financial modelling for partners and investors.

Origins of the Tetramatrix™ Platform Partnership

The filing states the partnership between Tetratherix and the University of Sydney began with Dr Ali Fathi's foundational research into the Tetramatrix™ platform during his PhD at the University. Will Knox was quoted in the filing as stating the new single flat royalty reduces the royalties payable on licensing revenues and strengthens the company's P&L in the near term and overall margin profile as its first products reach market. Knox also stated the arrangement provides certainty over margins for the next decade as the company commercialises products across the Tetramatrix™ platform.