
AstraZeneca entered into an agreement worth over $1.2 billion for the global development and marketing rights to Targacept’s late-stage drug, TC-5214, for major depressive disorder, the companies announced on Thursday.
Under the deal, AstraZeneca will make an upfront payment to Targacept of $200 million, as well as $540 million in regulatory and commercial milestone payments.
The companies said that Targacept, which has retained a co-promotion option for TC-5214 on a limited basis in the US, will be eligible to receive up to $500 million in payments related to “specified sales” milestones, as well as royalties on sales if the nicotinic channel blocker is approved.
Targacept announced in July that TC-5214 met the primary and secondary endpoints in a Phase IIb study investigating the drug as an add-on treatment for patients with major depressive disorder.
The companies expect to initiate a Phase III trial for the compound in mid-2010, with the goal of submitting a US regulatory application in 2012.