Targacept shares jump on continued development of AZD3480 drug

Targacept shares jumped after the company said it's received confirmation from AstraZeneca of plans to continue development of AZD3480 in Alzheimer's disease and cognitive deficits in schizophrenia. This determination triggers a $20 million milestone payment to Targacept.

In afternoon trading, (TRGT 8.95, +1.51, +20.3% ) ; (AZN : 53.75, +0.17, +0.3% ).

In the brain, the hallmark characteristics of AD are amyloid plaques and neurofibrillary tangles. Amyloid plaques are clumps of beta-amyloid, a protein fragment that is produced by abnormal processing of the amyloid precursor protein (APP). Beta-amyloid has also been called amyloid beta or Aβ. A major component of the neurofibrillary tangles is the protein tau. Development of these abnormal structures in the brain eventually results in disruptions in the transmissions between nerve cells (neurons) and death of the neuron.
AZD3480 is a highly selective nicotinic receptor agonist--acetyl choline is it's natural ligand and is a neurotransmitter. Inhibition of Ach degradation then stops the active metabolites from damaging nerve cells.

One half hour before market close, TRGT is trading up 21.5% per share; thats $1.60/share at $9.04!