Nxera Pharma Co., Ltd. announced a focused restructuring designed to concentrate investment and resources on efficient platforms, programs and products with the greatest value creation potential. Alongside a focus on prioritized programs, Nxera intends to implement initiatives to reduce operating expenses to support Nxera’s 2030 vision of ≥JPY50 billion in net sales and an operating profit margin of ≥30%.

Key objectives of the restructuring

• R&D focus and program prioritization: Strategic emphasis on best-in-class opportunities where the biology of G protein-coupled receptor (GPCR) targets is best understood and de-risked; and using Nxera’s proprietary NxWave™ platform to generate medicines with a differentiated profile. A portfolio review identified several programs that are no longer a priority for the Company for commercial reasons, and these will be readied for partnership or termination.
  • Strategic focus will be on the development of next-generation therapies for obesity, metabolic and endocrine disorders following the launch of Nxera’s proprietary pipeline in August 2025. Multiple partnered programs progressing through clinical development with momentum and near-term milestones are expected in FY2026.
  • AI deployed across the NxWave™ platform – AI technology trained on the industry’s most extensive proprietary GPCR structure–ligand dataset and paired with our curated chemogenomic library of GPCR-focused small molecules.
  • In line with the new R&D focus, Nxera will reduce FY2026 cash R&D expenditure¹ by approximately JPY3.5bn at its pharmaceutical operations in Cambridge, United Kingdom.
• Streamline leadership and workforce: Executive team reduced from ten 10 to seven 7 by March 2026). Dr. Patrik Foerch appointed Chief Scientific Officer (CSO) and President of Nxera Pharma UK, succeeding Dr. Matthew Barnes (effective 3 October 2025).
  • Dr. Foerch is an accomplished R&D leader across immunology, oncology and neuroscience, having served in senior roles at UK biotech companies Peptone and Sitryx and at the European pharmaceutical company UCB (see below for biography)
  • Workforce reduction of approximately 15% across Japan and UK operations to align with focused strategy and objectives. No impact to operations in Switzerland and South Korea.
• Maintain strong cash position and adjust core cost base (Japan & UK): Current cash and liquid investments of JPY30.9bn provides flexibility to enact strategy. One-time restructuring charges of approximately JPY500m will be recognized in FY2025 (as non-core operating expenses).
  • Performance-linked remuneration (cash bonuses) incentives for executives for FY2025 will be materially reduced (final amounts to be determined by the Company’s Compensation Committee in January 2026).
  • From FY2026, focused restructuring, renewed R&D focus, and efficiency and digital initiatives will deliver near-term cost savings to enhance our path to profitability, including an expected minimum JPY1.0bn in year-on-year savings next year.

Chris Cargill, President and CEO of Nxera, commented: “Nxera has built a solid business over the past decade, with a highly experienced team in Japan alongside world-class discovery and development capabilities in the UK. We have also created a powerful discovery platform in NxWave™, which has enabled us to generate one of the most extensive pipelines of GPCR-targeted programs in development in the biopharmaceutical industry.

“We will maintain global leadership by prioritizing higher-probability, high-return programs and deploying resources with discipline and speed. The actions we are announcing today will simplify how we work, accelerate momentum in programs with clear clinical and commercial potential and strengthen our operating leverage. We have set an ambitious target in our 2030 vision, and we have confidence that the measures we are announcing today put us on the right path to achieving those goals.”

Commenting on the appointment of Dr. Patrick Foerch as CSO and President of Nxera Pharma UK, Mr. Cargill added: “I am delighted to welcome Patrik to the team. He brings significant experience to sharpen our R&D focus and intensify our efforts to unlock the full value of our NxWave™ platform, pipeline and unique data assets. His expertise in building up dedicated AI drug discovery platforms is expected to support enhanced portfolio decision making, accelerate program progression, and ultimately increase return on investment across the R&D portfolio.”

Additional information

Execution of Restructuring Plan

• Workforce reduction: “Organizational Optimization Initiative” (operational consolidation and streamlining; outplacement/early retirement) implemented with a focus on compliance and fairness (a similar program has been implemented in the UK).
• Improving operational efficiency: Optimization of SG&A in Japan and the UK; IT-enabled reductions in outsourced services.
• Building on R&D momentum: Excellent progress on partnered programs and our prioritized GPCR pipeline leveraging the NxWave™ platform. Recent and near-term expected milestones include:
  • Neurocrine advanced Direclidine, a muscarinic M4 agonist, into registrational Phase 3 trials during 2025, with a new Phase 2 study in bipolar mania initiating Q4 2025.
  • Centessa reported promising Phase 2a (initial cohorts) data for ORX750, an orexin-2 agonist, showing a potential best-in-class profile in NT1, NT2 and IH; registrational program expected Q1 2026.
  • NXE’732, Nxera’s in-house EP4 antagonist cancer immunotherapy drug for a wide range of solid tumors successfully completed Phase 1 and moved into a Phase 2 expansion trial with partner Cancer Research UK.
  • NXE’149, Nxera’s in-house GPR52 agonist for schizophrenia will complete Phase 1 studies by year end with partner Boehringer Ingelheim, and their option to license decision will be near-term; and
  • Nxera’s launch of its broad, in-house discovered best-in-class portfolio of small molecule treatments for obesity and chronic weight management (August 2025).