Targacept stops development of bladder drug, shares plunge

July 28 Mon Jul 28, 2014 5:48pm EDT

July 28 (Reuters) - Targacept Inc said it was stopping the development of its bladder drug after it failed to show a statistically significant reduction in episodes of urinary incontinence in a mid-stage study.

The company's shares fell about 32 percent in extended trading.

The company also said based on results from this and previous trials, modulation of nicotinic receptors did not "appear to predict new treatments with a meaningful improvement over the current standard of care."

Targacept stopped the development of its Alzheimer's drug earlier this month and its schizophrenia drug last year. (Reporting By Amrutha Penumudi; Editing by Don Sebastian)