won’t pursue further development of a potential treatment for schizophrenia after the drug failed to produce “statistical significance” in a clinical trial.

Targacept (Nasdaq: TRGT) and its partner AstraZeneca, which paid for the trial and rights to the compound known as AZD3480, said the compound did not meet trial targets for improvement in cognitive functions.

The setback was the second in recent months for the two firms. In September, they reported that trial results of a potential Alzheimer’s drug also were inconclusive.

However, AstraZeneca and Targacept did agree to further test a compound they have jointly developed. That decision triggered a $2 million milestone payment to Targacept from AstraZeneca.