Targacept, Inc. is a biopharmaceutical company engaged in the design, discovery and development drugs to treat multiple diseases and disorders of the central nervous system by selectively targeting neuronal nicotinic receptors (NNRs). The Company is developing product candidates as treatments for target indications in three therapeutic areas: cognitive impairment, depression and anxiety, and pain. Within these areas, it has four product candidates in clinical development and three preclinical product candidates. The Company's product candidates are TC-1734 for cognitive impairment; TC-5214, Inversine and TC-2216 for depression and anxiety, and TC-2696 and TC-5619 for pain.

Targacept, a subsidiary of Reynolds American has received an up-front payment of $15 million from Glaxo in stock purchase. The goal is to study neuronal nicotinic receptors' (NNRs) impact on pain, obesity, addiction, Parkinson's disease, and smoking cessation. Targacept could receive as much as $1.5 billion from Glaxo, including double-digit royalty payments from sales of products that make it to market.

Neuronal nicotinic receptors are found in nerve cells throughout the nervous system.  Nicotine  bind to these receptors  which instigates a  variety of biologic processes by releasing neurotransmitters. The only approved drug targeting NNRs is Pfizer's  smoking-cessation product Chantix. Also, Memory Pharmaceuticals (MEMY) and Sanofi-Aventis (SNY) have drugs in development that target NNRs.

The Glaxo deal also covers Targacept's product candidates, TC-2696, currently in a phase 2 trial for acute postoperative pain.

Targacept has a licensing agreement with AstraZeneca (AZN) to market its phase 2b Alzheimer's drug. The influx of cash from Glaxo should allow the company to increase research and development in other therapeutic areas in which NNRs may be involved, which might elicit additional partnerships.