Under the terms of theagreement, GSK will make an initial upfront payment of $35.0 million toTargacept, which includes an investment of $15.0 million for the purchase of1,275,502 shares of Targacept common stock. In addition, Targacept is eligibleto receive up to $1.5 billion in payments from GSK, contingent on theachievement of specified discovery, development, regulatory and commercialmilestones, as well as tiered double-digit royalties dependent on salesachieved.
"The breadth of this alliance validates the importance ofNNRs in the potential treatment of a broad range of CNS-related disorders anddiseases," said J. Donald deBethizy, Ph.D., president and CEO of Targacept."This uniquely structured deal enables us to accelerate the progression of ourpipeline, capitalize on our discovery and development expertise, and leveragethe resources of a premier global pharmaceutical company while retainingconsiderable value. The alliance also aligns with our business strategy toprogress our pipeline through human proof of concept and partner selectivelyfor late-stage development and commercialization in primary care fields."
