Targacept, AstraZeneca form research collaboration for Alzheimer's compound

By Angela McDaniels

Seattle, Dec. 28 - Targacept Inc. and AstraZeneca plc said they have entered into an exclusive, global license and research collaboration for the development and commercialization of Targacept's TC-1734 compound to treat Alzheimer's disease, cognitive deficits in schizophrenia and other cognitive disorders.

Targacept will receive an initial payment of $10 million and $26 million in funding over the research term. With further milestone payments, Targacept may receive up to $300 million in payments in addition to stepped, double-digit royalties.

AstraZeneca will begin additional safety and product characterization studies of TC-1734. If the company then begins phase 2 clinical development of the compound, Targacept would receive an additional milestone payment of $20 million.

The agreement, which is subject to the expiration or termination of the Hart Scott Rodino clearance period in the United States, includes a four-year research collaboration under which Targacept will use its Pentad drug discovery technology to discover additional compounds.

AstraZeneca will fund and conduct the development and commercialization of TC-1734 and any compounds that arise out of the four-year research collaboration. Targacept will be eligible to receive additional milestone payments and royalties on any of these compounds.

Targacept has retained an option to co-promote TC-1734 and any compounds discovered in the research collaboration in the United States.

Targacept said it is conducting a phase 2 clinical trial of TC-1734 as a treatment for age-associated memory impairment and is responsible for completing this trial independently.

The agreement also provides a mechanism by which Targacept can offer AstraZeneca compounds that are unrelated to TC-1734 or the research agreement for development and commercialization.

Targacept is a biopharmaceutical company based in Winston-Salem, N.C., that develops a new class of drugs to treat multiple diseases and disorders of the central nervous system by selectively targeting neuronal nicotinic receptors.

London-based AstraZeneca develops, manufactures and markets prescription pharmaceuticals and supplies health-care services.

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