Targacept files for $59.8 million IPO

By Ted A. Knutson

Washington, Jan. 17 - Targacept, Inc. filed for a $59.8 million gross initial public offering of common stock in an S-1 filing with the Securities and Exchange Commission.

The Winston-Salem, N.C.-based firm is a biopharmaceutical company engaged in the design, discovery and development of a new class of drugs to treat multiple diseases and disorders of the central nervous system by selectively targeting neuronal nicotinic receptors or NNRs.

NNRs are found on nerve cells throughout the nervous system and serve as key regulators of nervous system activity.

Targacept is developing its most advanced product candidates as treatments for target indications in three therapeutic areas: cognitive impairment, depression and anxiety, and pain. Within these areas, the company has three product candidates in clinical development and two preclinical product candidates.

The lead candidate is TC-1734 for the treatment for Alzheimer's disease, cognitive deficits in schizophrenia and potentially other conditions marked by cognitive impairment such as attention deficit hyperactivity disorder, age associated memory impairment, and mild cognitive impairment.

In December, Targacept entered into a collaborative research and license agreement with AstraZeneca AB for the development and worldwide commercialization of the drug.

TC-1734 is in phase 2 trials.

IPO proceeds will be used to fund clinical trials, research and development and general corporate purposes.

The company had a net loss of $30.89 million on revenues of $941,000 for the nine months ended Sept. 30 versus a loss of $26.16 million on revenues of $1.58 million for the year-earlier period.

Targacept had $30.74 million in cash and cash equivalents as of Sept. 30.

According to a company news release, Deutsche Bank Securities will be the book-runner for the offering. Pacific Growth Equities LLC, CIBC World Markets and Lazard Capital Markets will be co-managers for the offering.

New Enterprise Associates of Boston is the largest stockholder with 2.92 million shares for 20.7% of the pre-IPO total. Nomura Phase4 Ventures Ltd. of London is the second largest with about 2.14 million shares for 15.2% of the total.

The company has applied to list its common stock on the Nasdaq National Market under the symbol "TRGT."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.