This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Targacept Unveils Depression Drug Data Next Week: BioBuzz

Updated with Targacept stock offering

WINSTON-SALEM, N.C. ( TheStreet) -- Investor expectations for Targacept's (TRGT - Get Report) experimental depression drug are moving higher in lockstep with the company's stock price as a key data presentation nears.

On Oct. 15, researchers will be releasing detailed findings from a phase II study of Targacept's depression drug TC-5214 at a neuroscience conference in Chicago.

Targacept announced July 15 that TC-5214 was able to improve the symptoms of depression in patients who don't respond well to Celexa, a currently prescribed antidepressant marketed by Forest Labs (FRX). Since that announcement, Targacept shares have soared 633%, closing Wednesday at $22.50.

The details of the TC-5214 depression augmentation study were left undisclosed for the Oct. 15 presentation. The key data to watch for is the difference in effect size for patients treated with TC-5214 plus Celexa compared to patients treated with a placebo plus Celexa.

The magic number here is at least a two-point improvement in the Hamilton Rating Scale for Depression, or HAM-D, in favor of the TC-5214 arm of the study, according to a biotech hedge fund analyst whose been doing a lot of work on TC-5214. His firm owns Targacept shares.

A two-point improvement for TC-5214 on this widely recognized depression scale is important because that's the same effect size seen with Bristol-Myers Squibb's (BMY) Abilify, which received an expanded FDA approval as an add-on treatment to anti-depressant therapy in late 2007.

The bulk of Abilify's $2 billion-plus in sales in 2008 were for schizophrenia, but a Needham analyst estimates that $500 million in Abilify sales this year will come from the add-on anti-depressant market.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SVNT $0.00 0.00%
BMY $61.92 -0.61%
GERN $2.96 -1.99%
TRGT $2.61 -0.76%
AAPL $129.36 0.21%

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs