Targacept Announces Changes to Board of Directors and Management

WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Targacept, Inc. (NASDAQ: TRGT), a clinical-stage biopharmaceutical company developing novel NNR Therapeutics (TM), today announced the following changes to its Board of Directors:

M. James Barrett, Ph.D. and G. Steven Burrill have resigned their directorships, effective May 31, 2013. Dr. Barrett and Mr. Burrill first joined Targacept's Board in 2002 and 2000, respectively, at the time of venture capital investments made in Targacept by their affiliated funds prior to Targacept's initial public offering.
Ralph Snyderman, M.D. has decided not to stand for reelection and will retire from Targacept's Board effective May 31, 2013. Dr. Snyderman, who has been a member of the Board since June 2007, has reached the retirement age set forth in Targacept's Corporate Governance Guidelines.

These decisions did not arise from any disagreement on any matter relating to Targacept's operations, policies or practices. When the changes become effective, Targacept's Board of Directors will be comprised of seven members, including Dr. Stephen A. Hill, Targacept's President and Chief Executive Officer, and six independent directors ─ Charles A. Blixt, Julia R. Brown, Errol B. De Souza, Ph.D., Alan Dunton, M.D., John P. Richard and Mark Skaletsky.

"On behalf of the Board, I'd like to thank Jim, Steve and Ralph for their guidance and strategic oversight as Targacept has grown from an early-stage, venture-funded enterprise to a mature, clinically focused organization," said Mark Skaletsky, Chairman of Targacept's Board of Directors. "Their seasoned leadership and expertise over the years has helped give Targacept a solid foundation on which to continue to build."

Targacept also announced that Jeffrey P. Brennan, Senior Vice President, Business and Commercial Development and Chief Business Officer, will be leaving the company as of March 31, 2013 to pursue other opportunities.

"I would like to personally thank Jeff for his contributions to the company. Targacept has a promising future thanks in part to his efforts over the last 10 years," said Dr. Stephen A. Hill, Targacept's President and Chief Executive Officer.

About Targacept

Targacept is developing a diverse pipeline of innovative NNR Therapeutics(TM) for difficult-to-treat diseases and disorders of the nervous system. NNR Therapeutics selectively modulate the activity of specific neuronal nicotinic receptors, unique proteins that regulate vital biological functions that are impaired in various disease states. Targacept's clinical pipeline includes multiple Phase 2 product candidates, all representing first-in-class opportunities. Targacept leverages its scientific leadership diverse pipeline to attract significant collaborations with global pharmaceutical companies. For more information, please visit www.targacept.com.


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Forward-Looking Statements

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 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 TC-5619, TC-5214 and TC-1734, 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; whether the executive turnover and workforce reductions experienced by Targacept will have an adverse impact on the development of any Targacept product candidate or Targacept's business generally; Targacept's ability to establish additional strategic alliances, collaborations or licensing or other comparable arrangements on favorable terms; Targacept's ability to protect its intellectual property; and the timing and success of submission, acceptance and approval of regulatory filings. Risks and uncertainties that Targacept faces 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™ and Building Health, Restoring Independence® 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.


Targacept, Inc.
Alan Musso, SVP, Finance and Administration and CFO
[email protected]
Linnden Communications
Michelle Linn, 508-362-3087
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