Targacept, Inc. a clinical-stage biopharmaceutical company developing novel NNR Therapeutics, announced that AstraZeneca will not exercise its option to license Targacept’s product candidate TC-5619. As a result, Targacept retains full rights to the compound, a highly selective alpha7 neuronal nicotinic receptor modulator.

“This outcome presents an opportunity to balance our portfolio between partnered and wholly owned assets and build additional value for Targacept. Our clinical results indicate the unique potential of TC-5619 to treat negative and cognitive symptoms of schizophrenia, a critical need not met by currently available treatments, and we are unwavering in our enthusiasm for the compound. We look forward to announcing our development plans soon,” said J Donald deBethizy, PhD, Targacept’s president and CEO. “Notwithstanding this decision, AstraZeneca has been and remains a valued collaborator of ours in the development of NNR Therapeutics.”

“While we have made the difficult decision to decline our right to license TC-5619, we nevertheless look forward to continuing our long standing and productive relationship with Targacept,” said Christer Köhler, vice president and Head of the Innovative Medicines Unit for Central Nervous System and Pain at AstraZeneca.

Targacept recently completed two phase II clinical trials of TC-5619, one in patients with schizophrenia and one in adults with attention deficit/hyperactivity disorder. The company is currently conducting additional clinical and non-clinical studies to enable potential additional phase II development in Alzheimer’s disease.

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.