Targacept gets $2M from AZ for CNS drug

Targacept, a US clinical-stage biopharmaceutical company developing a new class of drugs known as NNR Therapeutics, says that AstraZeneca has secured an option for an exclusive license to its product candidate TC-5619 under the terms of the their prior collaboration agreement (Marketletter January 9, 2006). As a result, AstraZeneca will make a $2.0 million payment.

Neuronal nicotinic receptors are a class of receptors found in the nervous system that play a critical role in modulating the release of 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 Targacept's 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 target for cognitive disorders, Targacept noted. The two firms entered into their license and R&D accord in December 2005, initially for the development and commercialization of another NNR drug, TC-1734, which AstraZeneca refers to as AZD3480. The Anglo-Swedish drug major is currently conducting Phase IIb clinical trials of of the drug in both Alzheimer's disease and cognitive deficits in schizophrenia.