Targacept, Inc, a clinical-stage biopharmaceutical company developing novel NNR Therapeutics,announced that it has entered into an exclusive worldwide license agreement with Cornerstone Therapeutics Inc. The agreement grants Targacept rights to Cornerstone’s NNR-based patents.
“We believe that NNR Therapeutics hold significant promise in treating a wide variety of inflammatory disorders and are especially enthusiastic about compounds selective for the alpha7 nicotinic receptor. This strategic transaction enhances our inflammatory disorders program and further bolsters our industry-leading NNR-based patent estate.”
Under the terms of the agreement, Targacept will make an upfront payment of $1.5 million to Cornerstone and Cornerstone will be eligible for additional payments from Targacept contingent upon achievement of specified milestones, as well as royalties on any future net sales of products covered by the licensed patents in the low single digits or, to the extent any internal Targacept compound for inflammatory disorders is covered by a licensed patent, below one percent.
Targacept is developing a diverse pipeline of NNR Therapeutics™ for difficult-to-treat diseases and disorders of the nervous system. NNR Therapeutics selectively modulate the activity of specific neuronal nicotinic receptors, a unique class of proteins that regulate vital biological functions that are impaired in various disease states. Targacept’s lead program, TC-5214, is in Phase 3 development as an adjunct treatment for major depressive disorder.
For more information, please visit www.targacept.com.
(Source: Press Release)