Collaboration Agreement

AstraZeneca PLC
28 December 2005

ASTRAZENECA SIGNS COLLABORATION AGREEMENT WITH TARGACEPT FOR NEW NEURONAL
NICOTINIC RECEPTOR COMPOUNDS



Phase II compound for improving cognitive deficits in Alzheimers Disease and
Schizophrenia included in agreement



AstraZeneca today announced that it has signed an exclusive global licensing and
research collaboration agreement with Targacept Inc. for the development and
commercialization of Targacept's phase II compound, TC-1734 to treat Alzheimer's
disease, cognitive deficits in schizophrenia and other cognitive disorders. The
four-year research collaboration also allows for the development of other
compounds that act on neuronal nicotinic receptors (NNRs).



Under the agreement, which is subject to the expiration or termination of the
HSR (Hart Scott Rodino) clearance period in the US, AstraZeneca will obtain the
global rights for the development and commercialization of TC-1734 and any
compounds that arise out of the research collaboration with the aim of
developing differentiated treatments for treating cognitive decline, an area of
high unmet medical need.



Upon effectiveness of the agreement, Targacept will receive an initial payment
of $10 million from AstraZeneca.  The parties will then begin the research
collaboration and AstraZeneca will initiate additional safety and product
characterization studies of TC-1734.  Successful completion of these studies and
a determination by AstraZeneca to initiate further phase II clinical studies of
TC-1734 would trigger an additional milestone payment of $20 million to
Targacept in addition to approximately $26 million in research support payments
over the four year period.  Taking into account the upfront payment, research
funding, and further payments contingent on achievement of development
regulatory and first commercial sale milestones for TC-1734, Targacept is
eligible to receive approximately $300 million in payments, together with
stepped double digit royalties dependent on sales achieved following regulatory
approval.



'AstraZeneca is committed to developing innovative therapies in the areas of
unmet need in Alzheimer's disease, Schizophrenia and other cognitive disorders,
and NNR-targeted therapeutics are an exciting area for us.  We believe that
Targacept's longstanding leadership position in NNR research will build upon our
existing strengths and open up new opportunities for AstraZeneca,' said Bob
Holland, Vice President Neuroscience and Head of the Neuroscience Therapy Area,
AstraZeneca.







'We are delighted to have AstraZeneca as our discovery and development
collaborator for our TC-1734 program and drug discovery efforts in cognitive
disorders,' said J. Donald deBethizy, Ph.D., President and Chief Executive
Officer of Targacept.  'AstraZeneca has a demonstrated expertise in developing
and commercializing treatments for central nervous system diseases, and we look
forward to working closely with our AstraZeneca colleagues to advance TC-1734
and this important research.'



Alzheimer's Disease represents an area of huge medical need in the developed and
developing world, causing great distress to patients and their carers and
imposing a major financial and resource burden upon society.  Current treatments
have limited efficacy and significant side effects in many patients.



Cognitive disorders are a core strategic area for AstraZeneca and this
collaboration underlines the commitment of AstraZeneca in Alzheimer's disease,
Schizophrenia and other cognitive disorders.  AstraZeneca's SEROQUEL, the highly
successful antipsychotic medication indicated for schizophrenia and bipolar
disorder, is the fastest growing atypical antipsychotic and number one
prescribed atypical in the United States.



About AstraZeneca

AstraZeneca is a major international healthcare business engaged in the
research, development, manufacture and marketing of prescription pharmaceuticals
and the supply of healthcare services. It is one of the world's leading
pharmaceutical companies with healthcare sales of over $21.4 billion and leading
positions in sales of gastrointestinal, cardiovascular, respiratory, oncology
and neuroscience products. AstraZeneca is listed in the Dow Jones Sustainability
Index (Global) as well as the FTSE4Good Index.


In Neuroscience, AstraZeneca is dedicated to providing medicines that have the
potential to change patients' lives. The company already markets several
products including SEROQUEL and ZOMIG.  SEROQUEL has been licensed for the
treatment of schizophrenia since 1997 and is available in 85 countries for the
treatment of this condition. SEROQUEL is also licensed in 73 countries for the
treatment of mania associated with bipolar disorder. The Neuroscience pipeline
includes leading approaches for the treatment of depression and anxiety,
overactive bladder, dementia, stroke, pain control and anaesthesia.



About Targacept

Targacept is a biopharmaceutical company engaged in the design, discovery and
development of a new class of drugs to treat multiple diseases and disorders of
the central nervous system by selectively targeting neuronal nicotinic
receptors, or NNRs.  NNRs are found on nerve cells throughout the nervous system
and serve as key regulators of nervous system activity.  Targacept's product
candidates are designed to selectively target specific NNR subtypes to promote
therapeutic effects and limit adverse side effects.  Targacept has a marketed
product, Inversine(r) (mecamylamine hydrochloride), product candidates in
clinical development for cognitive impairment, including Alzheimer's disease and
age associated memory impairment, pain and depression, and multiple ongoing
preclinical programs.

                                     -Ends-



28th December, 2005



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