Nxera Pharma Co. (TSE: 4565) has received a $10 million milestone payment from Neurocrine Biosciences Inc. following the U.S. Food and Drug Administration's acceptance of the Investigational New Drug application for NBI-1117567, an investigational oral treatment for cognitive impairment associated with Alzheimer's disease.
The milestone payment was triggered under a November 2021 collaboration agreement granting Neurocrine global development and commercialization rights to Nxera's portfolio of muscarinic receptor agonists, excluding M1 agonists in Japan. Nxera retains rights for M1 receptor agonists in Japan, with Neurocrine holding co-development and profit-sharing options.
NBI-1117567, a preferential M1 muscarinic receptor agonist discovered via Nxera's NxWave drug discovery platform, targets acetylcholine receptors involved in neurotransmission. The compound is the third in Nxera's muscarinic agonist portfolio to advance to Phase 2 trials, following direclidina (NBI-1117568) in Phase 3 and NBI-1117570 in Phase 2.
Under the agreement's terms, Neurocrine is responsible for global development costs outside Japan for M1 agonists. Nxera expects to recognize the $10 million milestone payment as revenue in the third quarter of fiscal year 2026. The total potential deal value, including development, regulatory, and commercial milestones along with product royalties, could reach up to $2.6 billion, subject to criteria fulfillment.
