A drug being developed by Targacept and AstraZeneca to fight major depressive disorder failed to meet its goal in a second Phase 3 clinical trial, according to an announcement. The drug, known as TC-5214, performed well in Phase 2 trials but also failed to show enough impact in its first Phase 3 trial. After that failure was announced in November, shares in the Winston-Salem-based Targacept (NASDAQ: TRGT) were cut in half.
In its announcement Targacept said two additional Phase 3 efficacy trials are ongoing. Patients in the two trials in which TC-5214 has failed were given dosages that were flexible, while the remaining trials are using a fixed dosage.
Targacept said it will take another look at its plans for the drug when the remaining trial data comes in, but currently plans to still file for approval of TC-5214 late next year. In a separate announcement, AstraZeneca said it is writing down the value of the intangible assets on its balance sheet related to TC-5214 by 50 percent or $96.5 million "based on the lower probability of success for the remaining TC-5214 studies." Targacept and AstraZeneca have been collaborating on the drug since 2009.