AstraZeneca in up to $1.24 billion deal for Targacept's depression drug

AstraZeneca, the Anglo-Swedish drug major, and USA-based Targacept have entered a collaboration and license agreement for the global development and commercialization of TC-5214, Targacept's late-stage investigational product for major depressive disorder (MDD).

The financial terms of the deal call for AstraZeneca to make an upfront payment to Targacept of $200 million upon effectiveness and up to an additional $540 million if specified development, regulatory and first commercial sale milestones are achieved. Targacept will also be eligible to receive up to $500 million if specified sales-related milestones are achieved, making a total of around $1.24 billion, as well as significant stepped double-digit royalties on net turnover worldwide. For its part, Targacept has retained an option for a co-promotion of TC-5214 to a limited target physician audience in the USA.

TC-5214, which recently completed a Phase IIb clinical trial, is a nicotinic channel blocker that is thought to treat depression by modulating the activity of various neuronal nicotinic receptor (NNR) subtypes.