Nexera Pharma raised its consolidated earnings forecast for the current fiscal year. It has entered into an exclusive licensing agreement with U.S.-based AbbVie, and is expected to include a $100 million upfront payment in its forecast.
According to the consolidated earnings forecast for the fiscal year ending December 2026, released after trading ended on the 4th, revenue is expected to be ¥48.8 billion, up 64.8% year on year, and operating profit is expected to be ¥15.7 billion, compared with an operating loss of ¥8.462 billion in the previous fiscal year. The forecast was raised to the upper end of the previous forecast range, and profit is expected to exceed the record high for the fiscal year ended March 2017, before the company changed its fiscal year-end.
Nexera Pharma is to enter into a global exclusive licensing agreement with AbbVie through an overseas subsidiary for its EP4 agonist program, including the novel small-molecule EP4 receptor agonist NXE0033744 under development. In connection with the agreement, the company is expected to receive a $100 million upfront payment.
The upward revision and licensing agreement are reported to have the potential to create a new source of revenue for Nexera Pharma's growth strategy. A small number of market participants point to the possibility that the combination of a major agreement and the latest drug could contribute to future results.