Tobacco Company Spinoff Signs Research Deal

Source from:  jointogether.org July 31, 2007  08/01/2007

Targacept, a tobacco research firm spun off of R.J. Reynolds Tobacco, has signed a drug-development deal with GlaxoSmithKline that could bring in up to $1.5 billion, Reuters reported July 27. Targacept's research focuses on developing pain and other medications based on nicotine. The company also is involved in smoking-cessation, obesity, addiction, and Parkinson's disease research. The Winston-Salem, N.C., firm will receive $35 million up front from Glaxo in the incentive-laden deal. Shares of Targacept rose 14 percent on news of the agreement. Enditem