Targacept regains rights to Alzheimer's drug candidate from AstraZeneca

US biopharma drug developer Targacept (Nasdaq: TRGT) and Anglo-Swedish drug major AstraZeneca (LSE: AZN) have amended their collaboration to give Targacept more rights to compounds that could potentially treat Alzheimer's disease and other cognitive disorders.

Specific financial terms of the revised accord, which goes back to 2009, were not disclosed. Under the new terms of the collaboration:

• Targacept now has the right to pursue development and commercialization of any alpha7 NNR modulator in any therapeutic area, including cognitive disorders and schizophrenia, without obligation to AstraZeneca. Previously, AstraZeneca held an option to license any such compound that was developed by Targacept for a cognitive disorder or schizophrenia. Targacept has several alpha7 NNR modulators in its portfolio.
• AstraZeneca now has the right to develop and commercialize the alpha4beta2 NNR modulators that it has licensed from Targacept under the collaboration, including AZD1446, in any therapeutic area. Previously, AstraZeneca’s rights with regard to these compounds were limited to cognitive disorders and schizophrenia.
• AstraZeneca will return to Targacept all rights to the alpha4beta2 modulator TC-1734 (also known as AZD3480), which is currently in a Phase IIb clinical trial in mild to moderate Alzheimer’s disease.