July 28 Targacept Inc said it was
stopping development of a drug to treat overactive bladder after
it failed to show significant reduction in incontinence in a
The company's shares fell 32 percent in extended trading
after it cancelled its third drug development program in eight
months and said it may change the direction of its research.
Targacept said based on this and previous trial results its
key technology did not appear to produce "new treatments with a
meaningful improvement over the current standard of care."
Targacept's key technology is based on modulating receptors
found in the central nervous system which transmit signals
between various organ systems and the brain.
The company still has one compound based on this technology
in clinical development to treat diabetic gastroparesis which
causes the partial paralysis of the stomach.
The company stopped the development of its Alzheimer's drug
this month and a schizophrenia drug last year.
CEO Stephen Hill said the company was considering a range of
options including the pursuit of "non-nicotinic opportunities".
Targacept's shares closed at $3.92 on the Nasdaq.
(Reporting By Amrutha Penumudi; Editing by Don Sebastian)