Targacept restructures after discontinuing TC-5619 for ADHD
Targacept Inc. (NASDAQ:TRGT) discontinued development of TC-5619 to treat ADHD and said it will implement a further reduction in headcount as well as limit its investment in its neuronal nicotinic receptor pipeline until the search for a new CEO is completed. The news sent shares of Targacept sliding $0.54 (11%) to $4.31 on Monday. The company discontinued TC-5619 for ADHD after top-line data from a Phase II trial in adults with inattentive-predominant ADHD showed that the compound missed the primary endpoint of improving inattention subscale scores of the Conners' Adult ADHD Rating Scale-Investigator Rated (CAARS-INV) from baseline to week four vs. placebo. The double-blind, U.S. trial enrolled 175 patients. Data from a Phase IIb trial of TC-5619 to treat negative symptoms and cognitive dysfunction in patients with schizophrenia are expected in mid-2013. The product is a neuronal nicotinic acetylcholine receptor alpha 7 (CHRNA7) agonist.
In April, Targacept restructured following several clinical setbacks. At June 30, Targacept had $205.9 million in cash and short- and long-term marketable securities and a six-month operating gain of $16.2 million (see BioCentury Extra, April 25). ...