Sunday, May 9, 2010

Targacept reports $6.8M profit

The Business Journal of the Greater Triad Area

Targacept's big licensing and development deal with pharmaceutical giant AstraZeneca pushed the Winston-Salem biotech firm to a $6.8 million profit in the first quarter, according to an earnings announcement.

That compares to a loss of $4.7 million in the first quarter of 2009. The profit stems mainly from the recognition of $17.9 million of revenue in the quarter from the $200 million upfront payment from AstraZeneca to gain access to a drug designed to fight severe depression.

The two companies are also working together on drugs targeting other diseases including Alzheimer's, attention deficit/hyperactivity disorder and schizophrenia.

The company has a separate deal with GlaxoSmithKline for research into Parkinson's disease.

A string of research milestones and lucrative development deals has boosted Targacept's stock price from around $2.40 last July to nearly $24 as of Wednesday's market close.

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