Nxera Pharma unveils restructuring to boost profitability, R&D focus

Nxera Pharma Co., Ltd. announced a focused restructuring aimed at maximizing shareholder value, prioritizing investment in its drug discovery platform, and streamlining operations to achieve profitability. The company plans to focus on best-in-class G protein-coupled receptor (GPCR) opportunities, leveraging its proprietary NxWave platform to develop differentiated medicines, particularly for obesity, metabolic, and endocrine disorders. This includes a reduction in FY2026 cash R&D expenditure by approximately JPY3.5bn at its UK operations.

The restructuring also involves optimizing its executive team, reducing it from 10 to 7 members by March 2026, with Patrick Foerch appointed as chief scientific officer and president of Nxera Pharma UK. A workforce reduction of approximately 15% is planned across Japan and UK operations. Additionally, the company expects one-time restructuring charges of approximately JPY500m in FY2025, and a material reduction in performance-linked remuneration for executives for FY2025.

These measures support Nxera's 2030 vision of achieving net sales of JPY50bn or more and an operating profit margin of 30% or more. The company possesses a strong cash position and liquid investments of JPY30.9bn, providing flexibility to execute this strategy.