AbbVie has added another angle to its relationship with Nxera, with the Big Pharma paying $100 million upfront for a phase 1 inflammatory bowel disease (IBD) candidate.
In exchange for the worldwide rights to develop the oral EP4 receptor agonist, dubbed NXE0033744, in IBD, AbbVie is also liable to pay up to $1.37 billion in development and commercial milestones, as well as tiered royalties should the candidate make it to market.
AbbVie is already a major player in the IBD space, courtesy of the blockbuster trio of Humira, Skyrizi and Rinvoq. Nxera has pitched NXE0033744—which was developed with the biopharma’s NxWave drug discovery platform— as serving the “significant unmet need of people with IBD that do not achieve satisfactory disease control.”
The theory is that by selectively activating EP4 receptors in the gastrointestinal tract, the drug can produce anti-inflammatory effects and mucosal healing, according to Nxera’s Nov. 4 release.
The biotech has taken NXE0033744 through a phase 1 trial that demonstrated “a gut-restricted profile and target engagement through a reduction in indomethacin-induced intestinal permeability,” it explained in this morning’s release.
Both companies are not the only ones that have shown an interest in E2 receptor 4 (EP4) as a tempting target. Ono Pharmaceutical’s ONO-4578, which is an antagonist of EP4 rather than an agonist, has already caught the attention of Bristol Myers Squibb for its potential to treat gastric cancer.
Nxera, which was previously called Sosei, announced late last year that it was pulling back from the IBD program for NXE0033744 as part of a restructuring of its pipeline and workforce. At the time, Nxera CEO Christopher Cargill said the program has gone “extremely well,” but argued that the level of competition in a setting he described as a “very, very complex and expensive area to be developing an asset” had driven the company to rethink its plans.
Announcing AbbVie’s decision yesterday to buy NXE0033744, Cargill said the Big Pharma was 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 put the licensing agreement in the context of the two companies’ long-running relationship, which includes an inflammatory and autoimmune-focused pact in 2020, followed by a 2022 deal to work on drugs for neurological diseases.
“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,” Cargill added. “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.”
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