) and partner
) recently amended their existing agreement. As per the revised
agreement, Targacept has the full rights to develop and
commercialize alpha7 NNR modulators for any indication including
cognitive disorders and schizophrenia. Before the amendment,
AstraZeneca had an option to license any alpha7 NNR modulator
targeting a cognitive disorder or schizophrenia.
AstraZeneca will also forgo its rights to TC-1734 (AZD3480,
alpha4beta2 modulator). TC-1734 is currently being
evaluated in a phase IIb trial for the treatment of
mild-to-moderate Alzheimer's disease.
Under the terms of the restructured agreement, AstraZeneca gains
the development and commercialization rights to alpha4beta2 NNR
modulators including AZD1446 for all indications. Before,
AstraZeneca only had rights to alpha4beta2 NNR modulators for
cognitive disorders and schizophrenia.
Recently, AstraZeneca was in the news when three patents
protecting its cholesterol management drug, Crestor
(rosuvastatin), were rendered invalid by the Federal Court of
Generic competition has adversely impacted AstraZeneca's revenues
over the past few quarters. This has put significant pressure on
the company. Additionally, there is increasing uncertainty
regarding Crestor due to the entry of generic versions of
) Lipitor in Nov 2011.
The company's much-hyped antiplatelet drug Brilinta's
performance has remained lukewarm. AstraZeneca is looking to
combat the generic threat through deals and acquisitions and
ASTRAZENECA PLC (AZN): Free Stock Analysis
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SHIRE PLC-ADR (SHPG): Free Stock Analysis
TARGACEPT INC (TRGT): Free Stock Analysis
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AstraZeneca carries a Zacks Rank #3 (Hold), while Targacept
carries a Zacks Rank #5 (Strong Sell). Right now,
) looks more attractive in the pharma space with a Zacks Rank #2