Targacept's $1.5 billion licensing pact with GlaxoSmithKline has run into some turbulence. The developer announced this morning that one of the drugs involved in that pact--TC-6499 for neuropathic pain--was being dumped after the treatment failed a clinical trial. Targacept's pipeline drugs modulate neuronal nicotinic receptors that regulate the body's nervous system.
"While we are disappointed not to be moving TC-6499 forward, we have learned a great deal about the NNR targets involved in perception of pain," said J. Donald deBethizy, Ph.D., Targacept's president and CEO. "Importantly, our alliance with GlaxoSmithKline continues to make progress as we remain focused on advancing programs in smoking cessation, obesity, Parkinson's disease, addiction and pain. We are fortunate to have a pipeline of NNR Therapeutics representing multiple opportunities for future success."
Back in the summer of 2007 Targacept nailed a $1.5 billion licensing deal with GSK for a package of experimental NNR-targeted therapies. Targacept got $35 million of that up front with the rest due in a series of scheduled milestones.
According to MarketWatch, Targacept's shares dropped nearly 19 percent to $2.37 in morning trading.
- check out the Targacept release