ASTRAZENECA AND TARGACEPT ANNOUNCE TOP-LINE RESULTS FROM PHASE IIB STUDY OF AZD3480 IN ALZHEIMER'S DISEASE

ASTRAZENECA AND TARGACEPT ANNOUNCE TOP-LINE RESULTS FROM PHASE IIB STUDY OF
AZD3480 IN ALZHEIMER'S DISEASE

·	Results inconclusive, as primary outcome measure not statistically significant
for either donepezil or AZD3480; results impacted by improvement in placebo
group
·	Improvements shown on secondary outcome measures ADCS-CGIC and MMSE 
·	Overall safety and tolerability profile comparable to placebo, with fewer
GI-related AEs than donepezil
·	Next steps include further analysis of full dataset and planned discussions
with leading medical experts


AstraZeneca and Targacept, Inc. today announced that results from the Phase IIb
clinical trial of AZD3480 (TC-1734) conducted by AstraZeneca in mild to moderate
Alzheimer's disease were inconclusive.  

In the 12-week placebo-controlled study, known as the Sirocco trial, neither the
active comparator donepezil nor AZD3480 met the trial's criteria for statistical
significance on the primary outcome measure, ADAS-Cog (Alzheimer's Disease
Assessment Scale - Cognition Subscale.)  Both results were impacted by an
improvement in the placebo group.

At two of the three doses tested, AZD3480 showed an improvement on the secondary
outcome measures ADCS-CGIC (Alzheimer's Disease Cooperative Study - Clinical
Global Impression of Change, a 7-point scale), a widely accepted measure of
clinician assessment of change in patients' behavior and ability to function,
and MMSE (Mini Mental State Examination, a 30-point scale), a quantitative
cognition scale commonly used by neurologists in a clinical setting.  Of the
three AZD3480 doses, the middle dose performed best on both measures (0.5 point
improvement, ADCS-CGIC and 0.9 point improvement, MMSE).  Donepezil also showed
an improvement on ADCS-CGIC (0.2 point improvement) and the MMSE (1.0 point
improvement).  Neither donepezil nor AZD3480 showed improvement in any domain of
the Cognitive Drug Research computerized test battery in the pooled dataset of
all subjects.

AZD3480 exhibited an overall safety and tolerability profile comparable to
placebo in the trial, with fewer gastrointestinal-related adverse events
(diarrhea, nausea and vomiting) than donepezil.  

Analyses of the full dataset from the Sirocco trial are ongoing.  AstraZeneca
and Targacept plan to discuss the data with leading medical experts and to
present and publish more detailed results over the coming months.  A decision by
AstraZeneca with respect to potential further development of AZD3480 is expected
in December 2008.

“While we had hoped for a more conclusive overall outcome, we believe the
Sirocco trial provides further support for the clinical rationale for AZD3480 by
demonstrating improvement on both ADCS-CGIC, an accepted scale that reflects
improvement in everyday activities, and the widely used MMSE cognitive
assessment, as well as a favorable safety and tolerability profile,” said J.
Donald deBethizy, Ph.D., President and Chief Executive Officer of Targacept. 
“These findings also strengthen the scientific foundation for our pipeline of
NNR Therapeutics.  We thank AstraZeneca for its execution of this trial and
investment in the broad development of AZD3480.”

In addition to Alzheimer's disease, AZD3480 is currently being evaluated in a
Phase IIb trial in cognitive dysfunction in schizophrenia (the “HALO” trial), as
well as a Phase II exploratory study in adult attention deficit/hyperactivity
disorder.  Top-line results from the cognitive dysfunction in schizophrenia
trial are expected by the end of 2008. 

# # #


16 September 2008


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Investor Enquiries US:
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About the Study
The Phase IIb Sirocco trial was conducted by AstraZeneca under the terms of an
exclusive global license and research collaboration agreement. The trial was a
multi-center, randomized, double blind, placebo controlled, dose-finding study
conducted at 84 sites in Western Europe, Eastern Europe and Canada. Subjects (n
= 567) were between 60 and 85 years of age and diagnosed with probable
Alzheimer's disease that was classified, based on a quantitative scale, as mild
or moderate in severity. Subjects were assigned to one of three dose groups of
AZD3480, to an active comparator, donepezil, or to placebo and dosed over 12
weeks.  The primary outcome measure in the trial was change from baseline after
12 weeks on ADAS-Cog.  A number of secondary outcome measures were also used in
the trial.

About AstraZeneca
AstraZeneca is a major international healthcare business engaged in research,
development, manufacturing and marketing of prescription pharmaceuticals and
supplier for healthcare services. AstraZeneca is one of the world's leading
pharmaceutical companies with healthcare sales of US $29.55 billion and is a
leader in gastrointestinal, cardiovascular, neuroscience, respiratory, oncology
and infection product sales. AstraZeneca is listed in the Dow Jones
Sustainability Index (Global) as well as the FTSE4Good Index.

About Targacept
Targacept is a clinical-stage biopharmaceutical company that discovers and
develops NNR Therapeutics (TM), a new class of drugs for the treatment of
central nervous system diseases and disorders. Targacept's product candidates
selectively modulate neuronal nicotinic receptors that serve as key regulators
of the nervous system to promote therapeutic effects and limit adverse side
effects. Targacept has product candidates in development for Alzheimer's
disease, cognitive dysfunction in schizophrenia, pain and major depressive
disorder, as well as multiple preclinical programs. Targacept also has a
cognition-focused collaboration with AstraZeneca and a strategic alliance with
GlaxoSmithKline. Targacept's news releases are available on its website at
www.targacept.com.


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