Targacept Announces Termination of Strategic Alliance Agreement with GlaxoSmithKline
WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Mar 3, 2011 - Targacept, Inc. (NASDAQ: TRGT), a clinical-stage biopharmaceutical company developing novel NNR Therapeutics™, today announced the termination of its strategic alliance agreement with GlaxoSmithKline (GSK), effective in May 2011.
Targacept and GSK entered into the agreement in July 2007 with the goal to discover, develop and market novel therapeutics that selectively target specified neuronal nicotinic receptors in five therapeutic focus areas—pain, smoking cessation, addiction, obesity and Parkinson's disease. In February 2010, GSK announced significant strategic changes in the neurosciences area, which ultimately led to the decision to end the alliance. Following termination of the agreement, Targacept will have full rights to its programs subject to the alliance, including compounds discovered or advanced as part of the alliance.
“Our alliance with GlaxoSmithKline provided us with substantial funding at a key time in Targacept's evolution, helping us stay at the forefront of NNR research and grow our pipeline of novel product candidates with diverse NNR pharmacologies,” said J. Donald deBethizy, Ph.D., Targacept's President and Chief Executive Officer. “With more learning comes more opportunity, and the number of potential therapeutic applications for NNR Therapeutics continues to grow. While we are disappointed that we will be no longer working with our colleagues at GlaxoSmithKline, we are energized to have increased flexibility to apply our resources where emerging science dictates. Our programs in Parkinson's disease and related disorders and in smoking cessation remain of great interest to us, and we look forward to continued progress in these areas of high unmet medical need.”
Since inception of the agreement in July 2007, Targacept received $45 million from GlaxoSmithKline, which included a $15 million equity investment. As a result of the termination of the agreement, Targacept plans to recognize into revenue in the first quarter of 2011 an incremental $17.6 million of amounts received under the agreement and recorded initially as deferred revenue.
Targacept is developing a diverse pipeline of innovative NNR Therapeutics™ for difficult-to-treat diseases and disorders of the nervous system. NNR Therapeutics selectively modulate the activity of specific neuronal nicotinic receptors, a unique class of proteins that regulate vital biological functions that are impaired in various disease states. Targacept's lead program, TC-5214, is being co-developed with AstraZeneca and is in Phase 3 clinical trials as an adjunct treatment for major depressive disorder. Targacept leverages its scientific leadership and proprietary drug discovery platform Pentad™ to generate novel small molecule product candidates to fuel its pipeline and attract significant collaborations with global pharmaceutical companies. For more information, please visit www.targacept.com.
Building Health, Restoring IndependenceSM
This press release includes “forward-looking statements” made under the provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements, other than statements of historical fact, regarding, without limitation: the progress or scope of Targacept's programs in Parkinson's disease, smoking cessation or any of the other therapeutic focus areas of its strategic alliance agreement with GlaxoSmithKline; the competitive position of Targacept's NNR Therapeutics or the commercial opportunity for Targacept's NNR Therapeutics in any target indication; or Targacept's plans, expectations or future operations, financial position, revenues, costs or expenses. Actual results, performance or experience may differ materially from those expressed or implied by any forward-looking statement as a result of various important factors, including without limitation risks and uncertainties relating to: the conduct and results of clinical trials and non-clinical studies and assessments of Targacept's product candidates, including the performance of third parties engaged to execute such trials, studies and assessments, delays resulting from any changes to the applicable protocols and difficulties or delays in the completion of subject enrollment or data analysis; and the timing and success of submission, acceptance and approval of regulatory filings. These and other risks and uncertainties are described in greater detail under the heading “Risk Factors” in Targacept's most recent Annual Report on Form 10-K and in other filings that it makes with the Securities and Exchange Commission. As a result of the risks and uncertainties, the results or events indicated by the forward-looking statements may not occur. Targacept cautions you not to place undue reliance on any forward-looking statement.
In addition, any forward-looking statement in this press release represents Targacept's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Targacept disclaims any obligation to update any forward-looking statement, except as required by applicable law.
NNR Therapeutics™, Pentad™ and Building Health, Restoring IndependenceSM are trademarks or service marks of Targacept, Inc. Any other service marks, trademarks and trade names appearing in this press release are the properties of their respective owners.
Posted: March 2011