Targacept, AstraZeneca deal

Targacept said that it and AstraZeneca amended their 2005 neurology deal. AstraZeneca will return all rights to Targacept's TC-1734 (AZD3480), a nicotinic acetylcholine alpha(4)beta(2) receptor agonist in Phase IIb testing for Alzheimer's disease. Targacept is now solely responsible for the cost of the Phase IIb trial. Additionally, Targacept now has development and commercialization rights to any of its neuronal nicotinic acetylcholine receptor alpha 7 (CHRNA7) agonists for any indication. Previously, AstraZeneca held an option to license any such compound for a cognitive disorder or schizophrenia. Also, AstraZeneca now has development and commercialization rights to the neuronal nicotinic acetylcholine alpha(4)beta(2) modulators included in the deal, including AZD1446, for any indication. Previously, AstraZeneca's rights for these compounds were limited to cognitive disorders and schizophrenia. AZD 1446 (TC-6683) has completed a Phase I trial for AD and was discovered using Targacept's Pentad drug discovery technology under the deal. Targacept remains eligible for up to $73 million in milestone payments for each compound AstraZeneca licenses (see BioCentury, Jan. 2, 2006 & May 10, 2010). ...