Targacept's 4Q loss widens to $15.9M
The restructuring, which trimmed Targacept's headcount nearly in half, followed the failure of the Winston-Salem company's lead drug -- a depression treatment -- in phase III clinical trials. The company has refocused its efforts on its remaining compounds in phase II studies.
Targacept reported just $590,000 in fourth quarter revenue, down from $18.9 million a year ago. Although Targacept has no Food and Drug Administration-approved drugs, the company drew revenue from alliances with larger drug companies, who helped finance drug development work. The steep revenue drop is linked to Targacept's loss of partnerships with GlaxoSmithKline (NYSE: GSK) and AstraZeneca (NYSE: AZN). The GSK partnership ended in 2011. AstraZeneca had collaborated with Targacept on the experimental depression treatment. But shortly after that compound failed in phase III trials last winter, that partnership terminated as well. AstraZeneca remains a partner with Targacept on other compounds.
Targacept's restructuring charges for the fourth quarter were $1.4 million. For the year the company reported $3.7 million in restructuring charges.
...
WRAL Tech Wire any time: Twitter, Facebook
Copyright 2013 WRAL Tech Wire. All rights reserved.Please log in or register to view WRALTechWire Insider content
To access this premium content and other benefits, become a WRAL TechWire Insider. Daily, monthly, and annual memberships available.
Please Log In to add a comment.
Best of TechWire Insider
OUR INSIDERS
The Skinny
IBM layoff update: North American cuts climb; mum is word down under- At last! Sprint 4G service formally launches in Triangle
- Big Blue's layoff total climbs in RTP; North America total surges past 2,800
- Big Blue layoff count nears 2,800 in North America alone
- NC's high-tech job picture improves in May, but ...
- IBM layoff count hits nearly 2,300 across 31 work groups
- NC IDEA: Startup deal flow 'better than it has ever been'
- IBM's job cuts are global, nearing 4,000; most are in U.S.
- CEO fears for future of NC Biofuels Center due to budget cuts
- Workers 50+ take biggest hit among 14% reduction in IBM marketing group