Targacept gets AstraZeneca milestone on Alzheimer's collaboration

US drug developer Targacept (Nasdaq: TRGT) says it has initiated a potential registration study of AZD3480 in mild-to-moderate Alzheimer’s disease, which is being developed under a collaboration with Anglo-Swedish drug major AstraZeneca (LSE: AZN). The study is the subject of a Special Protocol Assessment (SPA) agreement with the US Food and Drug Administration.

Under a prior amendment to the collaboration agreement, it was agreed that Targacept will conduct and bear all costs and expenses for the study and that AstraZeneca will pay Targacept for certain events with respect to the study. To date, AstraZeneca has paid Targacept $2.5 million and the US firm will get an additional $3.7 million on first dosing in the USA and Europe. In addition, Targacept remains eligible for future milestone and royalty payments for AZD3480 in accordance with the terms of the parties’ collaboration agreement.

Follows previous inconclusive Ph II findings