Targacept hits another home run

Targacept announced today that it has established a major partnership with Astra Zeneca to develop and promote its very promising new depression treatment. This announcement comes a few months after positive phase II trial results were announced and this could very well be the final piece of the puzzle to put Targacept over the edge. On the surface the deal looks quite lucrative for the small biotech company, but as with other agreements, it won't mean much of anything if the new treatment does not pan out in mid to late stage testing. The press release notes that Targacept will be shooting for a NDA in 2012, but phase III work should begin next year.

The company's stock has risen significantly since last year, and investors can expect the stock to continue it's upward movement as long as the good news keeps coming in. I like the ideas Targacept brings to the table, it's a strong pick to me.

Press Release posted on FierceBiotech

Endo just can't seem to catch a break when it comes to testosterone replacement. For the second time this year, the FDA put the kibosh on a new therapy. This time on the chopping block, Endo's Aveed: a long acting intramuscular injection of testosterone, designed to decrease the number of injections given to patients in need of this type of therapy. Apparently Endo is somewhat miffed by the FDA's request for more information on rare side effects, but I would argue that just because the effects are rare in clinical trials doesn't necessarily mean they will be rare in the general population. The ball is in Endo's court now, though, and whether or not they salvage Aveed is entirely up to them. That being said, I'm not a huge fan of the situation, so let's leave Endo alone for now.

Report on the FDA's ruling