Summary: Nxera Pharma, formerly known as Sosei Group, announced that its partner Centessa Pharmaceuticals has initiated a phase 2 trial of ORX750, an oral orexin receptor 2 agonist designed to treat narcolepsy type 1, type 2, and idiopathic hypersomnia. This milestone results in a $3.5 million payment to Nxera, which will be recognized as revenue in Q4 2024. The ORX750 program was developed from a co-investment between Nxera and Medicxi, giving Nxera a substantial equity stake in Centessa. Nxera anticipates additional financial gains from milestone payments, royalties, and the potential appreciation of its Centessa shares as the program advances.
Key Takeaways:
- $3.5 Million Milestone Payment: Centessa’s initiation of the phase 2 trial triggers a $3.5 million payout to Nxera Pharma, which will contribute to its Q4 2024 revenue.
- Strategic Co-Investment Impact: The ORX750 program stems from a 2019 partnership between Nxera and Medicxi, providing Nxera with equity in Centessa currently valued at approximately $15 million.
- Targeting Orexin Neuron Loss: ORX750 was designed to address orexin neuron loss in narcolepsy type 1, with potential applications for type 2 narcolepsy, idiopathic hypersomnia, and other sleep disorders.
Nxera Pharma Co Ltd, formerly known as Sosei Group or Sosei Heptares, announced that its partner Centessa Pharmaceuticals has initiated a phase 2 trial of ORX750, an investigational, orally administered, highly potent, and selective orexin receptor 2 (OX2R) agonist for the treatment of narcolepsy type 1 (NT1), narcolepsy type 2 (NT2), and idiopathic hypersomnia.
The achievement results in a payment of $3.5 million to Nxera pursuant to its research collaboration with Centessa. This will be recognized as revenue in Q4 FY2024.
ORX750 was designed using Nxera technology to directly target the underlying pathophysiology of orexin neuron loss in NT1, with potential applicability to NT2, idiopathic hypersomnia, and other sleep-wake disorders with normal orexin levels.
The ORX750 program originated from a strategic co-investment between Nxera and Medicxi, the life sciences investment firm, in 2019, which subsequently resulted in Nxera owning 929,353 shares in Centessa Pharmaceuticals (valued, as of today’s date, at approximately $15 million). Nxera stands to benefit from the potential appreciation of its equity holding in Centessa and also from further milestone payments and royalty income tied to the successful development of ORX750.
“This clinical development milestone with ORX750 is an important example of how our unique technology can be deployed to generate novel molecules with the potential to address unmet clinical needs,” says Matt Barnes, executive vice president, president of Nxera Pharma UK and head of research and development, in a release. “It also highlights the progress being made across the 12 clinical-stage programs in our extensive in-house and partnered portfolio. It is exciting to see this portfolio mature as it advances, and we look forward to reporting future milestones.”
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