(Updates to correct what the $2 million payment was for)
NEW YORK (Thomson Financial) - Targacept Inc. Monday said it would receive
$2 million so AstraZeneca could secure an option for an exclusive license to
Targacept's product candidate TC-5619.
The drug is a neuronal nicotinic receptor that modulates the release of
neurotransmitter chemicals that regulate nervous system activity. TC-5619
entered Phase I development in July.
AstraZeneca said its decision to secure the license option was triggered by
Targacept's decision to pursue its development for cognitive disorders. If
TC-5619 achieves clinical proof of concept, Targacept could receive $40 million
for an exclusive license.
AstraZeneca said it licensed the drug in order to develop therapies for
Alzheimer's disease, schizophrenia and other cognitive disorders.
The two companies entered into an exclusive license and research
collaboration agreement in December 2005.
AstraZeneca is a London-based pharmaceutical company. Its stock closed
Friday at $48.14.
Targacept is a Winston-Salem, N.C.-based developer of pharmaceutical drugs.
Its stock closed Friday at $9.40.
Ryan Vlastelica
rv/jw/tk1
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