AstraZeneca Signs Collaboration Agreement with Targacept for New Neuronal Nicotinic Receptor Compounds

AstraZeneca has signed an exclusive global licensing and research collaboration agreement with US-based Targacept Inc. for the development and commercialisation of Targacept's Phase II compound, TC-1734 to treat Alzheimer's disease, cognitive deficits in schizophrenia and other cognitive disorders. The four-year research collaboration also allows for the development of other compounds that act on neuronal nicotinic receptors, NNRs.

Under the agreement, which is subject to the expiration or termination of the Hart Scott Rodino, HSR, clearance period in the US, AstraZeneca will obtain the global rights for the development and commercialization of TC-1734 and any compounds that arise out of the research collaboration with the aim of developing differentiated treatments for treating cognitive decline, an area of high unmet medical need.

Upon effectiveness of the agreement, Targacept will receive an initial payment of EUR 8 million from AstraZeneca. The parties will then begin the research collaboration and AstraZeneca will initiate additional safety and product characterisation studies of TC-1734. Successful completion of these studies and a determination by AstraZeneca to initiate further Phase II clinical studies of TC-1734 would trigger an additional milestone payment of EUR 16,5 million to Targacept in addition to approximately EUR 21,5 million in research support payments over the four year period. Taking into account the upfront payment, research funding, and further payments contingent on achievement of development regulatory and first commercial sale milestones for TC-1734, Targacept is eligible to receive approximately EUR 248 million in payments, together with stepped double digit royalties dependent on sales achieved following regulatory approval.

For further information please contact:

Staffan Ternby,

Information Director

Tel: +46 0 70 557 4300

Email: staffan.ternby@astrazeneca.com

Or visit: www.astrazeneca.com