Targacept, AstraZeneca deal

The companies amended a 2005 deal to give AZN an option to TRGT's TC-5619, a nicotinic acetylcholine receptor alpha 7 receptor agonist that is in Phase I testing to treat cognitive impairment, schizophrenia and inflammation. TRGT will receive $2 million for the option. TRGT will be responsible for development through Phase II testing, after which AZN can pay TRGT $40 million for exclusive rights to TC-5619. If AZN exercises the option, TRGT would be eligible for $226 million in milestones, plus stepped double-digit royalties. ...