GlaxoSmithKline and Targacept Form Alliance in Therapeutics for CNS-related Disorders
07/27/2007
GlaxoSmithKline (GSK) and Targacept, Inc. (NASDAQ: TRGT) today announced a
strategic alliance to discover, develop and market novel therapeutics that
selectively target specified neuronal nicotinic receptors (NNRs).
The alliance includes Targacept's lead product candidates for pain: TC-2696,
which is currently in a Phase 2 trial for acute post-operative pain, and
TC-6499, a preclinical product candidate that is currently planned for
development for neuropathic pain. Targacept has retained an option to co-promote
TC-2696 and TC-6499 for pain to specialists and hospital-based physicians in the
United States.
Leveraging Targacept's more than 20 years of focused research in the NNR
field, the alliance also provides GSK with access to other discovery programs
across five therapeutic focus areas. In addition to pain, the other therapeutic
focus areas of the alliance are smoking cessation, obesity, addiction, and
Parkinson's disease.
Under the terms of the agreement, GSK will make an initial upfront payment of
$35.0 million to Targacept, which includes an investment of $15.0 million for
the purchase of 1,275,502 shares of Targacept common stock. In addition,
Targacept is eligible to receive up to $1.5 billion in payments from GSK,
contingent on the achievement of specified discovery, development, regulatory
and commercial milestones across five therapeutic focus areas, as well as tiered
double-digit royalties dependent on sales achieved.
In the alliance, Targacept will utilize its proprietary Pentad(TM) drug
discovery technology to discover novel small molecule product candidates that
target specified NNR subtypes and then would develop the most promising product
candidate for each therapeutic focus area through a Phase 2 proof of concept
trial. Targacept is eligible to receive success-based progress milestones from
GSK as product candidates are advanced. Upon Targacept's achievement of clinical
proof of concept for a lead product candidate for a particular therapeutic focus
area, GSK would have an exclusive option to license product candidates in
development in the alliance from that program. GSK would then assume full
responsibility for funding of further clinical development and commercialization
on a worldwide basis.
"The breadth of this alliance validates the importance of NNRs in the
potential treatment of a broad range of CNS-related disorders and diseases,"
said J. Donald deBethizy, Ph.D., President and Chief Executive Officer of
Targacept. "This uniquely structured deal enables us to accelerate the
progression of our pipeline, capitalize on our discovery and development
expertise and leverage the resources of a premier global pharmaceutical company
while retaining considerable value. The alliance also aligns with our business
strategy to progress our pipeline through human proof of concept and partner
selectively for late-stage development and commercialization in primary care
fields."
GSK will participate in the alliance through its Center of Excellence for
External Drug Discovery (CEEDD). Hugh Cowley, M.D., Senior Vice President and
head of the CEEDD said, "This alliance provides us access to innovative science
and pioneering research and expertise in the promising NNR field. We believe
there is tremendous potential for NNR therapeutics for a variety of CNS-related
diseases and disorders, and look forward to working with Targacept to accelerate
the development and delivery of new medicines to patients."
Targacept will be holding a conference call today at 10:00 a.m. Eastern Time
to discuss the alliance in more detail. Call details will be provided in a
separate release. |
