If the compound Targacept is developing for patients with schizophrenia has a future as a commercialized drug, it will get there without drug partner AstraZeneca.
AstraZeneca (NYSE:AZN) is passing up its option to license the drug compound from Winston-Salem, North Carolina drug development company Targacept (NASDAQ:TRGT). The compound, called TC-5619, showed promising results in phase 2 clinical trials that studied it as a treatment of cognitive dysfunction in patients with schizophrenia. But the drug candidate failed in a separate trial that studied its application in attention-deficit/hyperactivity disorder or ADHD.
The collaboration between Targacept and AstraZeneca dates to 2005, when the companies reached an agreement to study several Targacept compounds as possible treatments for cognitive disorders. The agreement gave AstraZeneca the right to license TC-5619, which would have triggered a $30 million payment to Targacept. Targacept stood to gain additional payments up to $212 million if the compound hit milestones.
Targacept will retain the rights to TC-5619 and CEO Donald deBethizy said in a statement that the company remains enthusiastic about the compound’s potential for schizophrenia. He added that the company will be announcing its development plans for TC-5619 soon.
AztraZeneca’s decision to not license TC-5619 does not end the partnership with Targacept. Targacept’s lead drug program for a compound called TC-5214 is being co-developed with AstraZeneca. The compound is in late-stage clinical trials as an adjunct treatment for major depressive disorder.
