Targacept to drop development of TC-5619 in schizophrenia, after disappointing trial results

Shares of US biopharma drug developer Targacept (Nasdaq: TRGT) tanked nearly 33% to $4 in pre-market trading on December 17, when the company announced disappointing mid-stage trial results with TC-5619, leading the company to drop further development of the investigational compound for schizophrenia or Alzheimer’s disease.

The company announced top-line results from a Phase IIb clinical trial of TC-5619 as an augmentation therapy for the treatment of negative symptoms of schizophrenia, saying that it did not meet the primary outcome measure, change from baseline on the Scale for the Assessment of Negative Symptoms (SANS) after 24 weeks versus placebo. In addition, TC-5619 did not demonstrate improvement on the key secondary measures of cognitive function. TC-5619 exhibited a benign safety and tolerability profile in the study.

“The development of new and innovative treatments for patients suffering from central nervous system disorders is challenging, and the results of this study highlight the risks inherent in trying to address the unmet medical needs that remain in schizophrenia,” said Stephen Hill, Targacept’s president and chief executive.