Targacept has completed recruitment for two phase IIb clinical trials and expects to start a third phase IIb trial in a third compound in the second quarter.
The Winston-Salem drug developer reported the progress in its release of first quarter financial results today. The compound TC-5619 and TC-1734 have enrolled patients in studies for schizophrenia and Alzheimer’s disease respectively. Targacept President and CEO Stephen Hill said top-line results are expected in mid-2014. A third compound, TC-5214, is moving to a start of a phase IIb study in overactive bladder.
Targacept reported a first quarter net loss of $8.1 million. A year ago, the company reported net income of $2.3 million. The company attributed the change primarily to a $19.1 million decrease in deferred revenue recognition, partially offset by a decrease in R&D expenses of $9.5 million.
Targacept does not have any Food and Drug Administration-approved drugs. The company’s revenue has come primarily from partnerships with large pharmaceutical companies. Net operating revenue in the first quarter totaled $3.5 million, down from $22.9 million in the first quarter of 2012. The decrease was due to the loss of revenue from depression drug candidate TC-5214 partnered with AstraZeneca. That partnership, which ended earlier this year following that compound’s failure in late-stage clinical trials, had accounted for $21.8 million in 2012 first quarter revenue. Targacept’s first quarter 2013 revenue came from remaining payments from AstraZeneca.
First quarter 2013 research and development expenses totaled $8.3 million, down from $17.8 million for the first quarter of 2012. The decrease in R&D spending was attributed primarily to the completion of the phase III program for TC-5214.
