GSK forms CNS therapeutics alliance with Targacept

GlaxoSmithKline (GSK) has announced the establishment of a strategic partnership with Targacept for the discovery, development and commercialisation of innovative pharmaceuticals for central nervous system (CNS)-related disorders.

These drugs will selectively target certain neruronal nicotinic receptors (NNRs), with the agreement covering lead pain-relief products from Targacept.

Under the terms of the agreement, Targacept will receive an initial payment of $35 million (17.2 million pounds) from GSK, $15 million of which will be used to purchase 1,275,502 shares in the firm.

Compounds from Targacept included in the deal are its phase II drug for post operative pain, TC-2696 and pre-clinical candidate product for neuropathic pain, TGC-6499, while the company could receive up to $1.5 billion following the attainment of successful development, regulatory and commercial milestones.

J Donald deBethizy, president and chief executive officer of Targacept, said: “The breadth of this alliance validates the importance of NNRs in the potential treatment of a broad range of CNS-related disorders and diseases.”

He added that this deal would accelerate the development of the company’s product pipeline, while combining its own knowledge and skills with the resources of a leading firm in GSK.

In December 2005, AstraZeneca signed a four-year research agreement with Targacept worth $300 million, with the deal relating to TC-1734 and other NNRs.