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FloridaJo
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Electronic Technician by trade. Arthritis book author. Trader. President Godin Technologies
  • Target for Targacept TRGT $35 2 comments
    Jul 17, 2009 2:22 PM | about stocks: CBIO

    As a former R.J.Reynolds employee I am quite familiar with the amount of money R.J.R. used to put into tobacco research.  The R&D labs building was worthy of being on an IBM campus.  The tobacco cash flow was so immense there was nothing R&D was in need of.

    Then in 2000 R.J.R. decided to spin off the chemical research lab and along with it the mountains of research that had already been done on NNR's (Neuronal Nicotinic Receptors), or the part of the brain that makes one crave a cigarette.  There was a promising future in brain drugs.

    Now it's been shown through mid-level trials that Targacept's chemical TC-5214 does better than Forest Laboratories Inc's (NYSE:FRX) drug Celexa in treatment of depression.  Celexa is one of 34 drugs Forest Labs sells at this time.  Forest Laboratories market cap is $7.5 Billion as of today, Targacept is a mere $200 Miliion. 

    In 2002 Forest Labs gained 17% of the antidepressant market with sales of Celexa reaching $1 Billion dollars.

    Targacept is also working on promising uses of their chemical for ADD, Alzheimers, and high blood pressure to name a few.  All very wide spread afflictions.

    My Target price for TRGT is $35.

    Forest Labs stock since inception qualdrupaled.  Is Targacept the next drug company to quadruple?  I say definitely yes.

    Long TRGT.

     

    Stocks: CBIO
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  • sparkgap
    , contributor
    Comment (1) | Send Message
     
    As someone who knows Targacept's R&D team well, I just want to make a correction. The statement above, "...Targacept's chemical TC-5214 does better than Forest Laboratories Inc's (FRX) drug Celexa in treatment of depression" is not entirely accurate.

     

    What they did is put depressed people on Celexia for several weeks and those who failed to respond were then randomized to receive TC-5214 or placebo PLUS Celexa for another several weeks.

     

    The results were VERY impressive and unpresidented in Psychiatric drug trials as TC-5214 began to show statistical seperation from placebo after only two weeks and generated a very high level of statistical difference (p<0.0001) in favor of TC-5214 by the end of the study. Otherwise, the info presented by FloridaJo is accurate.
    18 Jul 2009, 11:08 AM Reply Like
  • FloridaJo
    , contributor
    Comments (16) | Send Message
     
    Author’s reply » Thanks for the correction.

     

    On Jul 18 11:08 AM sparkgap wrote:

     

    > As someone who knows Targacept's R&amp;D team well, I just want to
    > make a correction. The statement above, "...Targacept's chemical
    > TC-5214 does better than Forest Laboratories Inc's (seekingalpha.com/symbo...)
    > drug Celexa in treatment of depression" is not entirely accurate.
    >
    >
    > What they did is put depressed people on Celexia for several weeks
    > and those who failed to respond were then randomized to receive TC-5214
    > or placebo PLUS Celexa for another several weeks.
    >
    > The results were VERY impressive and unpresidented in Psychiatric
    > drug trials as TC-5214 began to show statistical seperation from
    > placebo after only two weeks and generated a very high level of statistical
    > difference (p<0.0001) in favor of TC-5214 by the end of the study.
    > Otherwise, the info presented by FloridaJo is accurate.
    21 Jul 2009, 09:26 AM Reply Like
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