Targacept Stock Tanks After Study Of TC-5214 In Overactive Bladder Halted

(RTTNews) - Targacept Inc (TRGT) said Monday it is discontinuing further development of TC-5214 in overactive bladder, after a Phase 2b study showed that episodes of urinary incontinence failed to achieve statistical significance.

Following the announcement, Targacept shares dropped about 24 percent in after-hours trade on the Nasdaq.

The trial had mixed results, with statistically significant reduction in micturition frequency and an improvement that did not reach statistical significance on episodes of urinary incontinence per 24 hours, after 12 weeks of treatment, Targacept said in a statement.

While the trial was considered generally safe and well tolerated, there was a placebo corrected 15.1 percent rate of constipation and a 5.9 percent rate of urinary tract infection in the high dose group.

Analysis of the full data set from the trial are ongoing and Targacept plans to publish detailed results.

"Although TC-5214 provided dose-dependent efficacy on several endpoints during the course of treatment, the results were not compelling enough to justify the compound's continued development in overactive bladder," said Stephen Hill, Targacept's chief executive officer.

The Phase 2b study was a double blind, placebo controlled, randomized, parallel group trial that involved 768 patients with overactive bladder.

Today's announcement marks another setback for Targacept. Earlier this month, company said it was halting the development of a treatment for Alzheimer's disease owing to disappointing results in trials; and in September, it discontinued the development of its schizophrenia drug TC-5619 after it failed a mid-stage study.

Targacept stock closed Monday at $3.92 on a volume of 86k shares. In after hours, the stock dropped $0.94 or 23.98% at $2.98.