Japan-based Nxera Pharma is seeking buyers for its Phase II-ready schizophrenia programme after Boehringer Ingelheim decided not to exercise a licensing option.
Boehringer Ingelheim, which held exclusive rights to license the neurological disorder portfolio of GPR52 agonists, did not provide further information to Nxera. Rights to the programme will now revert to the Japanese biotech.
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Nxera said it is now exploring strategic opportunities for the programme, including a licensing partnership with a major pharmaceutical or specialist neuroscience company in 2026. Despite the hitch, Nxera said there will be no financial impact.
Investors were not impressed with the news. Shares in Tokyo-listed Nxera slid 5% to Y817 ($5.19) at market open on 19 December, compared to a market close of Y860 on 18 December.
Boehringer gained its exclusive licensing option via a deal in 2024 with Nxera, at the time known as Sosei Group Corporation pre-rebrand. Nxera received €25m upfront through the deal, but future payments upscaled the agreement. There was an option exercise payment of €60m, payments totalling up to €670m, and royalties for any approved products.
Citi analysts commented that Boehringer’s shun was “negative” for Nxera, as “there had been expectations for this large-scale deal in 2025-2026”.
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By GlobalData“If it can license the drug out without a problem, there should be little impact on medium-term corporate value,” the analysts added.
At the heart of Nxera’s GPR52 agonist programme is its lead compound NXE0048149, which has already demonstrated positive Phase I results. Pharmacodynamic endpoints from the study indicate that the drug engages brain circuitry relevant to the treatment of schizophrenia and related disorders. There were no severe or serious adverse events in the trial, showcasing the therapy’s promising safety. Nxera states that NXE0048149 is Phase II ready.
Nxera Pharma CEO Christopher Cargill commented: “Although we are disappointed that Boehringer Ingelheim has chosen not to proceed with the licence option, its decision does not diminish the significant potential of the GPR52 agonist program, which has demonstrated highly encouraging attributes as a first-in-class approach to treating several major symptoms of schizophrenia and addressing the shortcomings of current treatment options.
“We look forward to updating the market as we advance discussions with potential partners next year.”
Boehringer’s decision caps a difficult couple of months for the biopharma. In November 2025, the company laid out plans to cut 15% of its workforce and reprioritise its pipeline to pursue profitability targets. The UK and Japan are home to most of Nxera’s workforce, the total of which stood at 384 employees at the end of September.
In terms of its pipeline, Nxera said it would increase focus on therapies for obesity, metabolic and endocrine disorders.
However, the pipeline returning to Nxera’s ownership comes at a time when the schizophrenia market is experiencing growth. Schizophrenia drug sales across the seven major markets (7MM: US, France, Germany, Italy, Spain, UK and Japan) are forecast to reach $12.9bn in 2030, according to GlobalData analysis.
GlobalData is the parent company of Pharmaceutical Technology.
Indeed, the most expensive merger and acquisition (M&A) deal this year was Johnson & Johnson’s (J&J) buyout of neurological disease specialist Intra-Cellular Therapies for $14.6bn. J&J’s pipeline was bolstered with Intra-Cellular’s Caplyta (lumateperone), a drug approved for schizophrenia, bipolar depression, and major depressive disorder – the latter coming via a label extension in November 2025.
Caplyta is likely to become a heavyweight in the neuroscience drug landscape. J&J anticipates its oral antipsychotic pill will eventually generate $5bn in annual sales.
Analysts at GlobalData forecast annual sales of $2.7bn by 2031, the furthest year in its revenue model. The drug’s peak sales will likely extend beyond that figure.
