Targacept (NASDAQ:TRGT) has $10 million in additional funds to apply toward clinical trials on a drug candidate intended for patients with schizophrenia.
The Winston-Salem, North Carolina biopharmaceutical company last month completed a stock offering that net the company just over $70 million. On Friday, Targacept announced it has completed the sale of an additional 548,780 shares and exercised the over-allotment option granted to the underwriters of the offering. Net proceeds from that stock sale are approximately $10.6 million, which puts Targacept’s total haul at about $80.8 million.
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Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
Targacept’s stock offering followed a shelf registration statement last December in which the company gave itself the option to raise up to $150 million to develop its drug candidates. Targacept said most of the proceeds from the May offering will be applied to TC-5619, a compound that showed positive results in mid-stage clinical trials that studied cognitive dysfunction in patients with schizophrenia, but failed in a separate trial that studied attention-deficit/hyperactivity disorder, or ADHD. TC-5619 is also in preclinical studies for Alzheimer’s disease.
Drug partner AstraZeneca (NYSE:AZN) had the option to license the drug candidate under a 2005 partnership agreement to jointly research and develop drug candidates for cognitive disorders. AstraZeneca evaluated the compound but declined to license it and Targacept retained development rights. AstraZeneca remains a partner to Targacept on other compounds in development.
Deutsche Bank Securities Inc. acted as sole book-running manager for the offering. Lazard Capital Markets, Leerink Swann, Oppenheimer & Co., Needham & Company, Ladenburg Thalmann & Co. and Global Hunter Securities acted as co-managers for the offering.
