AstraZeneca Enters Into Collaboration, License Agreement With Targacept

AstraZeneca and Targacept have entered into a collaboration and license agreement for the global development and commercialisation of TC-5214, Targacept’s late-stage investigational product for major depressive disorder (MDD). TC-5214, which recently completed a phase IIb clinical trial, is a nicotinic channel blocker that is thought to treat depression by modulating the activity of various neuronal nicotinic receptor (NNR) subtypes.

As per the agreement, AstraZeneca is expected to make an upfront payment of $200m upon effectiveness and up to an additional $540m if specified development, regulatory and first commercial sale milestones are achieved.

Moreover, Targacept will also be eligible to receive up to $500m if specified sales related milestones are achieved as well as significant stepped double-digit royalties on net sales worldwide. Targacept has retained an option for a co-promotion of TC-5214 to a limited target physician audience in the US. Effectiveness of the agreement is contingent on expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Reportedly, the companies will jointly design a global Phase III clinical program anticipated to begin in mid 2010 with the goal of filing a new drug application (NDA) with the FDA in 2012. TC-5214 is being developed as an adjunct to antidepressant therapy in adults with MDD who do not respond adequately to first-line antidepressant treatment.

Additionally, the companies will also initiate a Phase II study exploring TC-5214 as a monotherapy for MDD. AstraZeneca will be responsible for 80% of the cost of the initial global development program, with Targacept responsible for the remaining 20%.

AstraZeneca will be responsible for and will fund the costs of global commercialisation of TC-5214, and will assume Targacept’s manufacturing and supply agreements with third parties in relation to TC-5214. The agreement also provides for a specified period for the parties to negotiate a potential multi-year research program that would be conducted by Targacept to identify and develop additional NNR Therapeutics for MDD and possibly other indications.

David Brennan, CEO of AstraZeneca, said: “The opportunity to improve treatment in depression is a large one, both commercially and in terms of benefits for patients. It’s an area both AstraZeneca and Targacept know well and I’m pleased to be adding another late stage project to our pipeline.”