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REFILE-UPDATE 1-Targacept cuts 46 pct jobs, to focus on key drugs
April 25, 2012 / 2:05 PM / 5 years ago

REFILE-UPDATE 1-Targacept cuts 46 pct jobs, to focus on key drugs

* Expects to take a charge of $2.4 mln in 2012

* Sees annual savings of $12.9 mln

April 25 (Reuters) - Targacept Inc cut 46 percent of its workforce to focus on the development of its most advanced drug pipeline.

The move by Targacept follows disappointing results from its experimental drug, TC-6987, for diabetes and asthma in two separate mid-stage trials.

The company, which is to report first-quarter results on May 3, said it will cut 65 jobs and take a charge of about $2.4 million in 2012. It also expects to save about $12.9 million annually.

Targacept’s drug, TC-5619, is in mid-stage trials for schizophrenia and a type of attention deficit hyperactivity disorder in adults. It has licensed two Alzheimer’s disease drugs, which are also in mid-stage trials, to AstraZeneca Plc .

Shares of the company were trading slightly down at $5.00 on Wednesday morning on the Nasdaq.

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