WINSTON-Targacept added an additional $14 million to its second round of financing on Wednesday, increasing the round’s total to $60 million.
The round is the second largest closed in the Carolinas and Georgia dating back to 2002. Only NewSouth Communications raised more – $63.5 million. Nomura International’s Private Equity Group led the round. Also participating were Oxford Bioscience Partners, JAFCO, Cogene Biotech Ventures, Bison Capital and Rock Castle Ventures.
Targacept is a privately held spin-off of RJ Reynolds and is focused on diseases that affect the central nervous system. Its first round in 2001 totaled $30.4 million.
As part of the deal, Alan Watson, a senior general partner and chairman of Oxford Bioscience, will join Targacept’s board.
“These funds provide further endorsement of the potential of our public portfolio and underlying technology platform and will allow us to rapidly progress the development of our clinical and late stage pre-clinical candidates,” said J. Donald deBethizy, president and chief executive officer of Targacept, in a statement.
Targacept is exploring and developing nicotinic acetylcholine receptor-based therapies for neurodegenerative, neuropsychiatric and gastrointestinal diseases. Diseases being studied include Alzheimer’s, Parkinson’s, Lewy body dementia and ulcerative colitis.