Targacept Reports 3Q Profit On Boost In Payments

WINSTON-SALEM, N.C. (AP) — Development-stage biopharmaceutical company Targacept Inc. on Thursday reported a third-quarter profit on a boost in payments from its partner AstraZeneca.

The company earned $1.3 million, or 5 cents per share, compared with a loss of $7.6 million, or 31 cents per share, a year earlier. The results included noncash stock-based compensation charges in both periods.

Revenue tripled, to $12.7 million from $4.1 million.

Analysts surveyed by Thomson Reuters expected a loss of 9 cents per share on revenue of $9.9 million.

Targacept is developing AZD3480, aimed at treating adults with attention deficit/hyperactivity disorder, or ADHD. AstraZeneca is a partner on the drug's development, which is heading toward late-stage development. Targacept said it has received $10 million in milestone payments from AstraZeneca.

Targacept expects to have at least $105 million in cash, cash equivalents and short-term investments at the end of the year. The company said it current resources should be sufficient to fund operations through the first half of 2012.

Shares of Targacept closed at $19.73 Thursday.