Agreement Between Targacept Inc. and Aventis Pharma for Development of Drugs to Treat Diseases of the Central Nervous System
Winston-Salem, NC
April 08, 2002
Targacept, Inc. today announced the signing of a new collaborative research and license agreement with Aventis Pharma (NYSE: AVE) to discover and develop drugs, derived from the Aventis Pharma library of compounds, for the treatment of Alzheimer's disease, Parkinson's disease and other disorders of the central nervous system (CNS).
The two companies have been collaborating since December 30, 1998 when Aventis Pharma obtained exclusive global rights to certain compounds in Targacept's library that showed potential to treat Alzheimer's and Parkinson's diseases. The research term of that agreement, originally set for two years, was extended and will now expire January 1, 2003.
The agreement announced today expands the fruitful collaboration between the two companies to include certain earlier stage compounds from the Aventis Pharma library for research and development. The research term of the agreement will extend for two years.
"The new agreement is an exciting mirror image of the first agreement," said J. Donald deBethizy, Ph.D., President and CEO of Targacept. "Under the first agreement, we've successfully developed compounds from Targacept's library. Now, under the second agreement, we'll look at compounds from Aventis Pharma library. This will significantly broaden the opportunity to develop innovative new therapies to minimize human suffering."
Aventis Pharma and Targacept will seek to identify compounds that demonstrate appropriate nicotinic pharmacology for potential use in the treatment of CNS diseases. Nicotinic compounds work by interacting with the body's nicotinic acetylcholine receptors, which are concentrated primarily in the brain, spinal cord, nerve cells and muscles. Studies have shown that these receptors are involved in cognition, pain and neurodegeneration, thus stimulating research for therapeutic products whose action is specific for these receptors.
The agreement provides for potential payments to Targacept in the form of research support, milestone payments and royalties. Aventis Pharma will have the sole right to commercialize each alliance product for each indication. Financial terms were not disclosed.
About Targacept
Targacept, a privately held research and development pharmaceutical company focused on medicines for treating diseases of the central nervous system, was established in 1997 as a wholly owned subsidiary of R.J. Reynolds Tobacco Company (NYSE: RJR). It was spun out as an independent company in August 2000, in one of the largest ($30.4 million) first-round venture capital financings in U.S. biotech history. The company has product candidates in development for treating neurological, psychiatric and gastrointestinal diseases. Targacept was named Pharmaceutical Company of the Year by NCEITA in 2001.
Back to Newsroom