Japan-based Nxera Pharma is seeking buyers for its Phase II schizophrenia program after Boehringer Ingelheim decided not to exercise a licensing option.
Boehringer Ingelheim, which held exclusive rights to license the portfolio of GPR52 agonists for neurological disorders, did not provide further information to Nxera. The rights to the program will now pass into the hands of the Japanese biotechnology company.
Nxera said it is now exploring strategic opportunities for the program, including a licensing partnership with a major pharmaceutical or neuroscience company in 2026. Despite the issue, Nxera said there will be no financial impact.
Investors were not impressed with the news. Shares of Tokyo-listed Nxera fell 5% to 817 yen ($5.19) at the market open on Dec. 19, compared with a market close of 860 yen on Dec. 18.
Boehringer obtained its exclusive licensing option through a 2024 deal with Nxera, at the time known as Sosei Group Corporation before the rebrand. Nxera received €25 million up front through the deal, but future payments expanded the deal. There was an option exercise payment of €60 million, payments totaling up to €670 million, and royalties for any approved products.
Citi analysts commented that Boehringer’s rejection was “negative” for Nxera, as “there were expectations for this large-scale deal in 2025-2026.”
“If it can license the drug without problems, there should be little impact on corporate value in the medium term,” the analysts added.
At the heart of Nxera’s GPR52 agonist program is its lead compound NXE0048149, which has already demonstrated positive results in Phase I. The study’s pharmacodynamic endpoints indicate that the drug activates brain circuits relevant to the treatment of schizophrenia and related disorders. There were no serious or serious adverse events in the trial, demonstrating the promising safety of the therapy. Nxera claims that NXE0048149 is ready for Phase II.
Christopher Cargill, CEO of Nxera Pharma, commented: “While we are disappointed that Boehringer Ingelheim has decided not to pursue the licensing option, its decision does not diminish the significant potential of the GPR52 agonist program, which has demonstrated very encouraging attributes as a first-in-class approach to treating several important symptoms of schizophrenia and addressing the shortcomings of current treatment options.
“We look forward to updating the market as we move forward in discussions with potential partners next year.”
Boehringer’s decision caps a difficult couple of months for the biopharmaceutical company. In November 2025, the company unveiled plans to cut 15% of its workforce and reprioritize its portfolio to meet profitability goals. The United Kingdom and Japan concentrate the majority of Nxera’s workforce, which at the end of September amounted to 384 employees.