GlaxoSmithKline pulls out of Targacept alliance

North Carolina, USA-based Targacept (Nasdaq: TRGT) which is developing novel NNR Therapeutics, yesterday announced the termination of its strategic alliance agreement with UK drugs giant GlaxoSmithKline (LSE: GSK), effective in May 2011.

The original deal, which could have earned the US firm a potential $1.85 billion including milestones, covered Targacept's TC-2696, which was then in a Phase II trial for acute post-operative pain, and preclinical drug candidate TC-6499 for neuropathic pain.

Targacept and GSK entered into the agreement in July 2007 with the goal to discover, develop and market novel therapeutics that selectively target specified neuronal nicotinic receptors in five therapeutic focus areas - pain, smoking cessation, addiction, obesity and Parkinson’s disease. In February 2010, GSK announced significant strategic changes in the neurosciences area, which ultimately led to the decision to end the alliance. Following termination of the agreement, Targacept will have full rights to its programs subject to the alliance, including compounds discovered or advanced as part of the alliance.