Nxera Pharma has entered into an exclusive global licensing agreement with AbbVie for NXE0033744, an investigational oral EP4 receptor agonist being developed for inflammatory bowel disease (IBD).
Under the terms of the agreement, AbbVie will receive exclusive worldwide rights to develop and commercialise the candidate for IBD. Nxera will receive an upfront payment of $100 million and could earn up to a further $1.37 billion in development and commercial milestone payments, in addition to tiered royalties on net sales.
The transaction remains subject to customary antitrust clearances, including requirements under the Hart-Scott-Rodino Antitrust Improvements Act.
NXE0033744 was discovered using Nxera’s proprietary NxWave drug discovery platform and is designed to selectively activate EP4 receptors in the gastrointestinal tract.
The therapy is being developed to address unmet needs among patients with IBD who do not achieve adequate disease control with existing treatments.
According to Nxera, the candidate aims to induce anti-inflammatory effects while promoting epithelial barrier homeostasis and mucosal healing. The company believes this could provide a differentiated mechanism of action compared with currently available therapies.
A phase 1 study has already been completed, generating data that supported a gut-selective profile and target engagement.
Christopher Cargill, President and CEO of Nxera Pharma, said: “This agreement with AbbVie marks a milestone in the continued development of NXE0033744 and reflects the potential of our NxWave platform to generate differentiated medicines for significant unmet needs.”
He added: “NXE0033744 is built on a novel biological approach, designed to activate EP4 locally in the gut to support epithelial barrier homeostasis and mucosal healing, potentially offering a differentiated mechanism of action from existing treatments.”
Cargill continued: “AbbVie is already an important partner to Nxera through our ongoing neuroscience discovery collaboration, and this agreement is a strong vote of confidence in NxWave’s ability to consistently deliver.”
He explained: “With its deep expertise and proven track record in immunological diseases, and global clinical development, we believe AbbVie is the ideal partner to advance the program globally and determine whether this biology can translate into measurable, life-changing outcomes for people with IBD.”
Cargill concluded: “The upfront payment, together with potential near-term milestone payments, will further strengthen our financial position while enabling Nxera to share in the future success of NXE0033744 and the value it may create.”
