Targacept, Inc. (NASDAQ: TRGT), a clinical-stage biopharmaceutical company developing novel NNR Therapeutics(TM), today announced that it has added to its program for inflammatory disorders by entering into an exclusive worldwide license agreement with Cornerstone Therapeutics Inc. The agreement grants Targacept rights to Cornerstone's NNR-based patents, as well as its library of preclinical compounds that act on the alpha7 or other nicotinic receptors. The technology licensed from Cornerstone by Targacept arose from work done at The Feinstein Institute for Medical Research led by Kevin J. Tracey, M.D.
“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.”
"The research we've conducted at The Feinstein Institute for Medical Research supports broad therapeutic application for drugs that target alpha7 nicotinic receptors and provides a strong scientific foundation for development of new therapies," said Kevin J. Tracey, M.D., Director and Chief Executive of The Feinstein Institute for Medical Research. "Targacept has established itself as a leader in the development of nicotinic compounds, and I am delighted to support its efforts to bring new treatment alternatives to the millions of patients suffering from inflammatory diseases and disorders."
"We look forward to further exploiting the unique breadth of therapeutic applications for NNRs by expanding our work in promising indications where inflammation is a key component," said J. Donald deBethizy, Targacept's President and Chief Executive Officer. "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.
Inflammation is a physiological response to pathogens and tissue damage in which cytokines are released to limit infection and promote tissue repair, a process modulated through the cholinergic anti-inflammatory pathway. This pathway is composed of the vagus nerve, the neurotransmitter acetylcholine and the alpha7 nicotinic receptor. Inflammatory diseases such as asthma, inflammatory bowel disease, rheumatoid arthritis, sepsis, Type 2 diabetes and ulcerative colitis may be the result of excessive cytokine production, which may be modulated through targeting the alpha7 receptor. Alpha7 agonists have shown effectiveness in a variety of preclinical models of inflammation, suggesting their potential utility in treating diseases with inflammatory components.
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