AstraZeneca (AZ) plans to continue development of AZD3480 (TC-1734) in Alzheimer's disease (AD) and cognitive deficits in schizophrenia, triggering a $20 million milestone payment to Targacept, Inc. This decision follows the completion of previously disclosed studies of AZD3480 (TC-1734) by AZ.

"AZ is committed to developing innovative therapies in the areas of unmet need of AD, schizophrenia and other cognitive disorders. Our decision to continue clinical development of AZD3480 demonstrates our belief in the cognitive-enhancing potential of NNR-targeted therapeutics," said Bob Holland, vice president and head of the neuroscience therapy area, AZ. "We are very pleased with our research collaboration with Targacept. We entered into the collaboration excited about the prospects of combining Targacept's longstanding leadership position in NNR research with our existing strengths, and the progress made in a relatively short time has been impressive."

"We are delighted with AZ's plans to move forward with development of AZD3480 in these two areas where a significant medical need is clear. We believe that the effects on cognition that we observed in our previous nine clinical trials of this product candidate in approximately 400 subjects show its potential as a treatment for cognitive disorders," said J. Donald deBethizy, Ph.D., president and chief executive officer of Targacept.