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Targacept to Receive $20 Million Milestone Payment as AstraZeneca Plans to Continue Development of AZD3480 (TC-1734)
12/27/2006
Winston-Salem, NC - Targacept, Inc. (NASDAQ: TRGT) today announced that
AstraZeneca (NYSE: AZN) plans to continue development of AZD3480 (TC-1734) in
Alzheimer's disease and cognitive deficits in schizophrenia. AstraZeneca's
determination to continue development triggers a $20 million milestone payment
to Targacept under the parties' collaboration agreement. Today's announcement
follows the completion by AstraZeneca of previously disclosed studies of AZD3480
(TC-1734).
"AstraZeneca is committed to developing innovative therapies in the
areas of unmet need of Alzheimer's disease, schizophrenia and other cognitive
disorders. Our decision to continue clinical development of AZD3480 demonstrates
our belief in the cognitive-enhancing potential of NNR-targeted therapeutics,"
said Bob Holland, Vice President and Head of the Neuroscience Therapy Area,
AstraZeneca. "in addition to the promise of AZD3480, we are very pleased with
our research collaboration with Targacept. We entered into the collaboration
excited about the prospects of combining Targacept's longstanding leadership
position in NNR research with our existing strengths, and the progress made in a
relatively short time has been impressive."
"We are delighted with AstraZeneca's plans to move forward with development
of AZD3480 in these two areas where a significant medical need is clear. We
believe that the effects on cognition that we observed in our previous nine
clinical trials of this product candidate in approximately 400 subjects show its
potential as a treatment for cognitive disorders," said J. Donald deBethizy,
Ph.D., President and Chief Executive Officer of Targacept.
"We are very pleased that AstraZeneca made the determination to conduct
further development of AZD3480 ahead of schedule, demonstrating a strong
commitment to the NNR mechanism and an extraordinary ability to execute against
aggressive timelines. We look forward to a long and productive collaboration."
Alzheimer's disease represents an area of great medical need in the developed
and developing world, causing great distress to patients and their caregivers
and imposing a major financial burden. Current treatments have limited efficacy
and significant side effects in many patients.
Schizophrenia is a chronic, severe and disabling form of psychosis that, in
addition to symptoms such as delusions and hallucinations, is often marked by
impairments in cognitive functions such as attention, vigilance, memory and
reasoning. These cognitive impairments play a primary role in the inability of
schizophrenic patients to function normally. There is currently no product
approved for the treatment of cognitive deficits in schizophrenia.
Collaboration Summary
In December 2005, Targacept and AstraZeneca entered into an exclusive global
license and research collaboration agreement for the development and
commercialization of Targacept's proprietary compound TC-1734, which AstraZeneca
refers to as AZD3480, to treat Alzheimer's disease, cognitive deficits in
schizophrenia and other cognitive disorders. Targacept received an initial
payment of $10 million from AstraZeneca and, as a result of AstraZeneca's
determination to continue development of AZD3480, a milestone payment of $20
million from AstraZeneca will become due. In addition, Targacept is eligible to
receive other payments of up to $249 million, contingent upon the achievement of
development, regulatory and first commercial sale milestones for AZD3480, as
well as stepped double digit royalties dependent on sales achieved following
regulatory approval.
Under the agreement, Targacept and AstraZeneca initiated a preclinical
research collaboration in January 2006 under which Targacept is utilizing its
proprietary drug discovery technology known as Pentad to discover additional
compounds. Based on the current budget for the research collaboration, Targacept
expects to receive approximately $26.4 million in funding from AstraZeneca over
the planned four-year research term.
AstraZeneca is primarily responsible for and has agreed to fund the
development and commercialization of AZD3480 and any compounds that arise out of
the research collaboration. If compounds that arise out of the research
collaboration are selected for advancement, Targacept would be eligible to
receive additional payments, contingent upon the achievement of development,
regulatory and first commercial sale milestones, as well as royalties dependent
on sales achieved following regulatory approval. Targacept has retained an
option to co-promote in the United States AZD3480 and any compounds that arise
out of the research collaboration and are selected for advancement.
Independent of the research collaboration, the agreement provides for a
mechanism by which Targacept can offer to AstraZeneca compounds that act on
different NNR subtypes than AZD3480 for development and commercialization for
the treatment of Alzheimer's disease, cognitive deficits in schizophrenia, other
cognitive disorders or schizophrenia.
About Targacept
Targacept is a clinical-stage biopharmaceutical company that discovers and
develops NNR Therapeutics, a new class of drugs for the treatment of central
nervous system diseases and disorders. Targacept's product candidates
selectively modulate neuronal nicotinic receptors that serve as key regulators
of the nervous system activity to promote therapeutic effects and limit adverse
side effects. Targacept has product candidates in development for Alzheimer's
disease and cognitive deficits in schizophrenia, pain and depression, and
multiple preclinical programs. Targacept is located in Winston-Salem, North
Carolina. For more information about Targacept, please visit www.targacept.com.
About AstraZeneca
AstraZeneca is a major international healthcare business engaged in the
research, development, manufacture and marketing of prescription pharmaceuticals
and the supply of healthcare services. It is one of the world's leading
pharmaceutical companies with healthcare sales of $23.95 billion and leading
positions in sales of gastrointestinal, cardiovascular, neuroscience,
respiratory, oncology and infection products. AstraZeneca is listed in the Dow
Jones Sustainability Index (Global) as well as the FTSE4Good Index. For more
information about AstraZeneca, please visit www.astrazeneca.com.
In Neuroscience, AstraZeneca is dedicated to providing medicines that have
the potential to change patients' lives. The company already markets several
products including SEROQUEL and ZOMIG. The AstraZeneca neuroscience pipeline
includes leading approaches for the treatment of depression and anxiety,
schizophrenia, dementia, pain control and anaesthesia.
Forward Looking Statements
Any statements in this press release about expectations, plans and prospects
for Targacept, Inc., including, without limitation, statements regarding the
development plans and objectives for AZD3480 (TC-1734), the progress, timing and
scope of the research and development program, or related regulatory filings or
clinical trials, for AZD3480 or any of our other product candidates and all
other statements that are not purely historical in nature, constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Without limiting the foregoing, the words "may,"
"will," "could," "would," "should," "expect," "intend," "plan," "anticipate,"
"believe," "estimate," "predict," "project," "potential," "promise," "continue,"
"ongoing" and similar expressions are intended to identify forward-looking
statements. Actual results may differ materially from those expressed or implied
by forward-looking statements as a result of various important factors,
including our critical accounting policies and risks and uncertainties relating
to: the amount and timing of resources that AstraZeneca devotes to the
development of AZD3480; AstraZeneca's right in the future to terminate the
preclinical research collaboration that we and AstraZeneca are currently
conducting prior to the end of the planned four-year term; the results of
nonclinical studies and assessments and clinical trials with respect to our
current and future product candidates in development; the conduct of clinical
trials, including the performance of third parties that we or AstraZeneca engage
to execute the trials and difficulties or delays in the completion of patient
enrollment or data analysis; and the timing and success of submission,
acceptance and approval of regulatory filings. These and other risks and
uncertainties are described in greater detail under the heading "Risk Factors"
in our most recent Quarterly Report on Form 10-Q and in other filings that we
make with the Securities and Exchange Commission. As a result of the risks and
uncertainties, the results or events indicated by the forward-looking statements
may not occur. We caution you not to place undue reliance on any forward-looking
statement. In addition, any forward-looking statements in this release represent
our views only as of the date of this release and should not be relied upon as
representing our views as of any subsequent date. We anticipate that subsequent
events and developments may cause our views to change. Although we may elect to
update these forward-looking statements publicly at some point in the future,
whether as a result of new information, future events or otherwise, we
specifically disclaim any obligation to do so, except as required by applicable
law. Our forward-looking statements do not reflect the potential impact of any
future acquisitions, mergers, dispositions, joint ventures or investments we may
make.
Pentad and NNR Therapeutics are trademarks of Targacept, Inc.
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Contacts:
Alan Musso, VP and CFO Targacept, Inc. Tel: (336) 480-2186 Email: alan.musso@targacept.com
Michelle Linn Linnden Communications Tel: (508) 419-1555 Email: linnmich@comcast.net |
