AstraZeneca won't take up rights to Targacept's TC-5619; gains US appro for Nexium for GERD in infants and teens

US biopharma company Targacept (Nasdaq: TRGT) says that Anglo-Swedish drug major AstraZeneca (LSE: AZN) will not exercise its option to license its product candidate TC-5619, a potential treatment for schizophrenia. 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 Donald deBethizy, Targacept’s president and chief executive Officer. “Notwithstanding this decision, AstraZeneca has been and remains a valued collaborator of ours in the development of NNR Therapeutics,” he added.

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