AstraZeneca licences Targacept drug

3rd Dec 2009 07:05

Anglo-Swedish drugs giant AstraZeneca is to licence TC-5214, the treatment for major depressive disorder (MDD) developed by biopharmaceutical company Targacept.The two companies will work together on the global development and commercialisation of TC-5214, a late stage product which recently completed a phase IIb clinical trial.The drug is a nicotinic channel blocker that is believed to ameliorate depression by modulating the activity of various neuronal nicotinic receptor (NNR) sub-types.MDD is a condition that affects 42m people worldwide. The global anti-depressant market is valued at more than $20bn.‘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,’ said AstraZeneca chief executive officer, David Brennan.Under the terms of the agreement Astra will stump up an initial $200m upon effectiveness and up to $540m in additional payments if specified development, regulatory and first commercial sale milestones are achieved.Targacept could also receive up to $500m more if various sales milestones are reached, as well as significant stepped double-digit royalties on net sales globally.Astra and Targacept will collaborate on a global phase III clinical programme, slated to start in mid-2010, with the objective of filing a new drug application with the US Food and Drug Administration in 2012.