WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Oct. 8, 2012--
Targacept, Inc. (NASDAQ: TRGT) today provided details of a previously
announced workforce reduction that will affect approximately 38% of
current employees. The company further announced that it will close its
laboratory operations by the end of 2012. Targacept is implementing
these measures to align its resources more closely with corporate
objectives that include realizing the value potential of its clinical
programs and conserving capital to best position the company for future
opportunities. The reduction in force and changes to operations are
expected to generate annual savings of approximately $9.6 million
beginning in 2013.
“This is a difficult step for us to take, as many talented professionals
who have contributed significantly to Targacept over the years will be
leaving the company. We are deeply appreciative of these employees for
their years of committed service,” said Mark Skaletsky, Chairman of
Targacept’s Board of Directors.
Targacept estimates one-time severance and other charges related to the
reduction in force of approximately $1.5 million will be incurred in the
fourth quarter of 2012. Targacept expects the actions announced today,
together with steps implemented earlier this year, will generate annual
savings of approximately $22.5 million on a going forward basis.
Targacept currently has cash and investments of approximately $195.0
million and continues to expect that its cash resources will be
sufficient to fund its operating requirements through at least 2015.
With the reduction in force announced today, Targacept will have 43
Targacept is developing a diverse pipeline of innovative NNR
Therapeutics™ for difficult-to-treat diseases and disorders of the
nervous system. NNR Therapeutics selectively modulate the activity of
specific neuronal nicotinic receptors, unique proteins that regulate
vital biological functions that are impaired in various disease states.
Targacept’s clinical pipeline includes multiple Phase 2 product
candidates, all representing first-in-class opportunities. Targacept
leverages its scientific leadership and diverse pipeline to attract
significant collaborations with global pharmaceutical companies. For
more information, please visit www.targacept.com.
Building Health, Restoring Independence®
This press release includes "forward-looking statements" made under the
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements, other than statements of
historical fact, regarding, without limitation: the annual savings from
the reduction in Targacept’s workforce and operational changes, alone or
together with steps implemented earlier in 2012; the amount of severance
and other costs related to the workforce reduction; the value potential
of Targacept’s clinical-stage programs; or Targacept’s plans,
expectations or future operations, financial position, revenues, costs
or expenses. Actual results, performance or experience may differ
materially from those expressed or implied by any forward-looking
statement as a result of various important factors, including without
limitation Targacept's critical accounting policies and risks and
uncertainties relating to: Targacept’s ability to implement the
workforce reduction successfully and achieve the estimated savings;
Targacept’s ability to manage its cash operating expenses; whether the
workforce reduction will have an adverse impact on the development of
any Targacept product candidate or Targacept’s business generally; the
conduct and results of clinical trials and non-clinical studies and
assessments of TC-5619, TC-5214, AZD3480, AZD1446 or any other Targacept
product candidate, including the performance of third parties engaged to
execute such trials, studies and assessments; whether positive findings
from any particular completed clinical trial of TC-5619 will be
replicated in ongoing or any future clinical trials; Targacept's ability
to protect its intellectual property; the timing and success of
submission, acceptance and approval of regulatory filings; and those
risks and uncertainties described under the heading "Risk Factors" in
Targacept's most recent Annual Report on Form 10-K and in other filings
that it makes with the Securities and Exchange Commission. As a result
of the risks and uncertainties, the results or events indicated by the
forward-looking statements may not occur. Targacept cautions you not to
place undue reliance on any forward-looking statement.
In addition, any forward-looking statement in this press release
represents Targacept's views only as of the date of this press release
and should not be relied upon as representing its views as of any
subsequent date. Targacept disclaims any obligation to update any
forward-looking statement, except as required by applicable law.
NNR Therapeutics™ and Building Health, Restoring Independence® are
trademarks or service marks of Targacept, Inc. Any other service marks,
trademarks and trade names appearing in this press release are the
properties of their respective owners.
Source: Targacept, Inc.
Alan Musso, 336-480-2186
SVP, Finance and
Administration and CFO
Michelle Linn, 508-362-3087