Targacept licenses nicotine receptor from Cornerstone for up to $75 million

US firm Targacept has acquired worldwide rights to fellow USA-based Cornerstone Therapeutics' nicotinic-receptor based patents and library of preclinical compounds that target the alpha-7 or other nicotinic receptors originally licensed to Cornerstone from the Feinstein Institute for Medical Research.

Under the terms of the agreement, Cornerstone will receive an upfront payment of $1.5 million and is eligible for success-based milestone payments ranging from up to $45.6 million to up to $74.9 million, depending on which of two specified lead compounds is progressed by Targacept. The potential milestone payments are comprised of $1.1 million to $1.4 million through Phase II clinical proof of concept, $9.5 million to $18.5 million in later-stage pre-commercialization milestones and $35.0 million to $55.0 million in sales-based milestones. If Targacept develops other compounds covered by the licensed patents, Cornerstone is also eligible for lower success-based milestone payments for each other compound, and will receive low single-digit royalties based on any future net sales of licensed products.

Targets inflammatory diseases