MKM Partners Cuts Target on Targacept (TRGT) to $6 After TC-5619 Fails in ADHD

September 18, 2012 10:49 AM EDT Send to a Friend
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MKM Partners lowered its price target on Buy-rated Targacept (NASDAQ: TRGT) from $11.50 to $6 after the company announced negative top-line results from a Phase 2 trial of TC-5619 as a treatment for inattentive-predominant ADHD. TC-5619 did not meet the primary outcome measure of change on the inattention subscale of the CAARS-INV, and Targacept will not pursue further development of TC-5619 in ADHD.

"We previously valued the TC-5619 program at $150mn, which included both ADHD and schizophrenia. As a result of the failed ADHD trial we are lowering our valuation of the TC-5619 program from $150mn to $25mn," the analyst comments. The schizophrenia trial is ongoing and should have results in mid-2013."

For an analyst ratings summary and ratings history on Targacept click here. For more ratings news on Targacept click here.

Shares of Targacept closed at $4.31 yesterday.

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