GSK Inks Pain Pact...

GlaxoSmithKline and Targacept have entered a development pact centered around small-molecule drugs targeting neuronal nicotinic receptors (NNRs), which Targacept describes as the "volume knobs" on the nervous system. GSK will fork over a $35 million upfront fee that includes a $15 million stake in Targacept. In exchange, GSK gains access to a drug in Phase II trials for postoperative pain and a compound in preclinical studies for neuropathic pain. Targacept will also discover other compounds targeting NNRs to address five therapeutic areas: pain, smoking cessation, obesity, addiction, and Parkinson's disease. The biotech firm will develop the compounds through Phase II trials, at which time GSK will have an exclusive option to license them.