AbbVie has secured global development and commercialization rights to an investigational oral drug candidate from Nxera Pharma that could offer a new approach to treating inflammatory bowel disease (IBD). The agreement includes a $100 million upfront payment and the potential for an additional $1.37 billion in development and commercial milestones, along with tiered royalties on future sales.

The license covers NXE0033744, a small-molecule EP4 receptor agonist discovered using Nxera’s proprietary NxWave drug discovery platform. Under the agreement, Nxera Pharma UK, a subsidiary of the Tokyo-based company, will grant AbbVie exclusive worldwide rights to develop and commercialize the candidate for IBD.

NXE0033744 is designed to activate EP4 receptors locally in the gastrointestinal tract. The approach is intended to trigger anti-inflammatory activity while supporting epithelial barrier function and mucosal healing. By targeting these processes, the candidate could provide a different mechanism of action from currently available IBD treatments.

The program is aimed at patients who do not achieve adequate disease control with existing therapies, an area of continued unmet medical need in both Crohn’s disease and ulcerative colitis.

Nxera has completed a Phase 1 clinical study of NXE0033744. According to the company, the results provided evidence of a gut-selective profile and target engagement, supporting further investigation of the candidate’s therapeutic potential.

The agreement builds on an existing relationship between the two companies through a neuroscience drug discovery collaboration. Nxera CEO and President Christopher Cargill says AbbVie’s experience in immunology and global clinical development makes it a suitable partner to advance the program.

Cargill also highlights the transaction as validation of the NxWave platform’s ability to generate drug candidates targeting significant unmet medical needs. He said the upfront consideration and potential milestone payments will strengthen Nxera’s financial position while allowing the company to participate in the program’s future commercial value.

The $100 million upfront payment is expected to have a material positive impact on Nxera’s revenue. The company anticipates recognizing the payment in the fourth quarter of its 2026 financial year, subject to agreement with its auditors. The transaction remains subject to customary antitrust clearances, including review under the Hart-Scott-Rodino Antitrust Improvements Act.

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