Small Biotech Company Strikes Big Deal
Targacept Inc. is just a little biotechnology company in North Carolina, but they struck a once in a lifetime deal Friday that boosted stock by 20%. The deal was an agreement with GlaxoSmithKline for whom they will develop drugs targeting neuronal nicotinic receptors for pain and other disorders. The deal includes payments up front, purchase of 1.3 million common Targacept shares by GSK, and monetary rewards for reaching certain milestones in their search for product candidates to treat pain, smoking cessation, obesity, addiction and Parkinson's disease.
Targacept Inc. is known for its research in central nervous system therapeutics, and was listed in May 2007, in The Scientist magazine, as one of the best companies to choose for a career in the biotech industry. The pre-clinical deal allows Targacept to maintain independence while providing much needed research financing to develop their leading projects to the proof of concept stage.
Sources:
Jennifer Boggs. Targacept NNR Platform Lands in Billion-Dollar GSK Alliance. BioWorld, July 30, 2007. http://www.bioworld.com/servlet/com.accumedia.web.Dispatcher?next=bioWorldHeadlines_article&forceid=44831.
Comments
Share price correction
Many thanks to Linda for pointing out an error in the stock price I originally published in this blog. Targacept share price has ranged from $9.31 on July 24 to a high of $12.35 on July 27, far higher than the $2.00 I erroneously indicated.
My appologies to anyone who was affected by my mistake.
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