PMGC Holdings Inc. (NASDAQ:ELAB) experienced a notable premarket rally, with its shares climbing 22.8% on Wednesday following an announcement from its wholly owned subsidiary, NorthStrive Biosciences. NorthStrive said it has entered a definitive exclusive licensing agreement with Modulant Biosciences that covers animal health applications.
Under the terms of the agreement, Modulant receives exclusive, worldwide rights - with South Korea excluded - to develop, manufacture and commercialize products based on NorthStrive's EL-22 and EL-32 technologies for non-human animal health uses. The licensing scope explicitly includes potential use as feed additives and other animal health formats, while excluding any human pharmaceutical or clinical applications.
The technologies at the center of the deal act on the myostatin and activin-A pathways, biological regulators of muscle development, strength and metabolic efficiency. These pathways are identified in the agreement as relevant to animal health and nutrition objectives such as improving livestock productivity and supporting companion animal muscle health.
Per the deal, Modulant will take on responsibility for all development, manufacturing, regulatory filings and commercialization efforts for the licensed products in the animal health field. The contractual framework also incorporates standard industry provisions, including development obligations, sublicensing rights, shared ownership of downstream improvements and requirements designed to maintain regulatory compliance within the animal health sector.
The licensing agreement follows a previously announced binding term sheet dated May 12, 2025. Financial details were not disclosed in the announcement; it noted only that Modulant agreed to pay value to NorthStrive in exchange for the license.
NorthStrive Biosciences, which focuses on developing and acquiring aesthetic medicines, emphasized in the announcement that there is no assurance Modulant will successfully develop or commercialize products derived from EL-22 or EL-32. That caution reflects a limitation in the agreement - while rights and responsibilities are transferred, actual product development, regulatory approval and market launch remain uncertain and are the responsibility of the licensee.
The market reaction in PMGC's stock price reflects investor interest in the potential commercial pathway for these technologies in animal health. However, the agreement maintains clear territorial carve-outs and scope limitations, and leaves financial terms undisclosed, limiting visibility into the immediate economic impact for NorthStrive and its parent company.
Contextual note: The arrangement assigns principal development and commercialization duties to Modulant and preserves NorthStrive's IP interests through shared ownership of subsequent improvements. It also limits the licensed applications to non-human uses, explicitly preventing transfer into human pharmaceutical development under the terms announced.