Targacept to Receive $2 Million from AstraZeneca

Targacept, Inc., a clinical-stage biopharmaceutical company developing a new class of drugs known as NNR Therapeutics (TM), recently announced that AstraZeneca has secured an option for an exclusive license to Targacepts product candidate TC-5619 under the terms of the parties collaboration agreement.  As a result, AstraZeneca will make a $2 million payment to Targacept. 

Neuronal nicotinic receptors (NNRs) are a class of receptors found in the nervous system that play a critical role in modulating the release of chemicals called neurotransmitters to regulate nervous system activity.  The alpha7 NNR subtype has been shown in animal studies to be a key regulator of cognitive function.  TC-5619, the lead product candidate in Targacepts alpha7 NNR program, entered Phase I clinical development in July 2007.  The parties expansion of their collaboration to include TC-5619 reflects the potential of the alpha7 NNR as a therapeutic target for cognitive disorders.

Our decision to secure an option to license TC-5619 under our collaboration agreement underscores AstraZenecas enthusiasm for the promise of NNRs as a new mechanism for the treatment of cognitive disorders, said Bob Holland, Vice President and Head of the Neuroscience Therapy Area, AstraZeneca.  We are committed to developing novel therapies in areas of unmet need such as Alzheimers disease, cognitive deficits in schizophrenia and other cognitive disorders and are delighted to be able to access Targacepts innovation in this field.

Targacept and AstraZeneca entered into their exclusive global license and research collaboration agreement in December 2005, initially for the development and commercialization of another of Targacepts NNR Therapeutics, TC-1734, which AstraZeneca refers to as AZD3480.  AstraZeneca is currently conducting Phase IIb clinical trials of AZD3480 (TC-1734) in each of Alzheimers disease and cognitive deficits in schizophrenia.

The progress to date in our AstraZeneca collaboration has been impressive, said J. Donald deBethizy, Ph.D., Targacepts President and Chief Executive Officer.  AstraZenecas ongoing Phase IIb proof of efficacy trials of AZD3480 in Alzheimers disease and cognitive deficits in schizophrenia are together expected to enroll approximately 900 patients, with both trials on track to complete in the second half of 2008.  Beyond that, our funded preclinical research collaboration is yielding additional novel product candidates targeting the alpha4beta2 NNR subtype, and we are now introducing TC-5619, an alpha7 NNR agonist, into the collaboration.  We are very fortunate to be working closely with AstraZeneca as we progress our portfolio of NNR Therapeutics for the treatment of cognitive disorders.
 
Targacept is a clinical-stage biopharmaceutical company that discovers and develops NNR Therapeutics (TM), a new class of drugs for the treatment of central nervous system diseases and disorders. Its product candidates selectively modulate neuronal nicotinic receptors that serve as key regulators of the nervous system to promote therapeutic effects and limit adverse side effects. Targacept has product candidates in development for Alzheimers disease and cognitive deficits in schizophrenia, pain, and depression and anxiety disorders, as well as multiple preclinical programs. Targacept also has strategic alliances with AstraZeneca and GlaxoSmithKline.

For more information, please visit www.targacept.com