WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Targacept, Inc. (NASDAQ: TRGT), a clinical-stage biopharmaceutical company developing novel NNR Therapeutics™, today announced the initiation of a potential registration study of AZD3480 in mild to moderate Alzheimer’s disease. The study is the subject of a Special Protocol Assessment (SPA) agreement with the U.S. Food and Drug Administration. AZD3480 is licensed to AstraZeneca pursuant to a collaboration agreement focused in cognitive disorders. Under a prior amendment to the collaboration agreement, it was agreed that Targacept will conduct and bear all costs and expenses for the study and that AstraZeneca will pay Targacept for certain events with respect to the study. To date, AstraZeneca has paid Targacept $2.5 million and will pay Targacept an additional $3.7 million upon first dosing in the U.S. and Europe. In addition, Targacept remains eligible for future milestone and royalty payments for AZD3480 in accordance with the terms of the parties’ collaboration agreement.