Targacept Scientists to Present at Society for Neuroscience Satellite Meeting

Targacept, Inc. (NASDAQ: TRGT), a clinical-stage biopharmaceutical company developing novel NNR Therapeutics ™, today announced that it is scheduled to make two podium presentations at the 4th Bi-Annual Satellite Meeting to the Society for Neuroscience Annual Meeting, “Nicotinic Acetylcholine Receptor-Based Therapeutics: Emerging Frontiers in Basic Research & Clinical Science,” taking place at Paradise Point Resort in San Diego from November 6 through November 8, 2013.

• David Hosford, M.D, Ph.D, Targacept’s Vice President, Clinical Development and Regulatory Affairs, will discuss the ongoing study of TC-5619 in Phase 2b development for negative symptoms and cognitive dysfunction in schizophrenia, and will present data from a completed Phase 2 study of the compound. Dr. Hosford will also discuss the development potential for TC-5619 as a treatment for Alzheimer’s disease. This presentation is scheduled for November 7 at 2:00 p.m. PT.
• Steven Toler, Pharm.D., Ph.D., Targacept’s Vice President, Clinical Pharmaceutical Sciences, will speak about the role of neuronal nicotinic receptors (NNRs) in regulating bladder and gastrointestinal (GI) function. Dr. Toler’s presentation will discuss the scientific rationale supporting the ongoing Phase 2b study of TC-5214 as a treatment for overactive bladder (OAB). Dr. Toler will also review previous clinical data and present the rationale for developing a separate wholly-owned Targacept compound, TC-6499, as a treatment for diabetic gastroparesis and other GI motility disorders. This presentation is scheduled for November 8 at 1:00 p.m. PT.

About TC-5619: TC-5619 is a wholly-owned, highly selective modulator of the alpha7 NNR currently in Phase 2b development as a treatment for negative symptoms and cognitive dysfunction in schizophrenia. The company expects to report top-line results from this study in either December 2013 or January 2014. Targacept plans to conduct enabling studies in 2014 to facilitate later stage development of TC-5619 in Alzheimer’s disease.

About TC-5214: TC-5214 is currently in Phase 2b development, with top-line results expected in the first half of 2014. This compound acts potently as an antagonist on alpha3beta4 and other NNRs located in or around the bladder that are believed to play a key role in bladder contraction and signaling of the urge to urinate. Targacept believes that TC-5214 has potential as a novel mechanistic approach for the treatment of OAB.

About TC-6499: TC-6499 is a novel small molecule that modulates the activity of the alpha3beta4 NNRs as an agonist. Alpha3beta4 NNRs are located throughout the GI tract and, when modulated, are believed to increase cholinergic tone, which in turn increases motility. Targacept is preparing for the development of TC-6499 as a treatment for patients with diabetic gastroparesis and plans to initiate a Phase 2a study of TC-6499 in the first half of 2014, based on a Phase 1 study and a small Phase 2 study in patients with constipation-predominant irritable bowel syndrome where evidence of an increase in motility was observed.

About Targacept

Targacept is developing an advanced clinical pipeline of NNR Therapeutics™ to treat patients suffering from serious nervous system and gastrointestinal/genitourinary diseases and disorders. Many diseases arise from abnormalities in signaling within and between the brain and other organ systems such as the bladder and the GI tract. Targacept’s NNR Therapeutics have the potential to normalize these signaling pathways to provide significant medical benefit. Targacept is dedicated to building health and restoring independence for patients. For more information, please visit www.targacept.com.

About the Society for Neuroscience

The Society for Neuroscience (SfN) is the world’s largest organization of scientists and physicians devoted to understanding the brain and nervous system. The nonprofit organization, founded in 1969, now has nearly 42,000 members in more than 90 countries and 130 chapters worldwide. Today, SfN is the world's largest organization of scientists and physicians devoted to advancing understanding of the brain and nervous system. For more information regarding the 4th Bi-Annual Satellite Meeting to the Society for Neuroscience Annual Meeting, please visit https://www.cmpinc.net/nicotinic2013/home.html.

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Forward-Looking Statements

This press release includes “forward-looking statements” made under the provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements, other than statements of historical fact, regarding without limitation: the timing for reporting of top-line results from Targacept’s Phase 2b clinical trials of TC-5619, TC-5214 or TC-1734; the effect of the outcomes of all or any one of the ongoing Phase 2b clinical trials on Targacept; the medical benefits of TC-5619, TC-5214, TC-6499, or TC-1734; or Targacept’s plans, expectations or future operations, financial position, revenues, costs or expenses. Actual results, performance or experience may differ materially from those expressed or implied by any forward-looking statement as a result of various important factors, including without limitation Targacept’s critical accounting policies and risks and uncertainties relating to: the conduct and results of clinical trials and non-clinical studies and assessments of TC-5619, TC-5214, TC-6499, and TC-1734, including the performance of third parties engaged to execute such trials, studies and assessments, delays resulting from any changes to the applicable protocols and difficulties or delays in the start-up of clinical trial sites or the completion of subject enrollment or data analysis; whether favorable findings from Targacept’s completed clinical trial of TC-5619 in patients with schizophrenia will be replicated in Targacept’s ongoing clinical trial of TC-5619 or potential future clinical trials; investor perception of results from Targacept’s ongoing Phase 2b clinical trials and the prospects for the applicable product candidates and Targacept; Targacept’s ability to establish additional strategic alliances, collaborations or licensing or other comparable arrangements on favorable terms; Targacept’s ability to protect its intellectual property; and the timing and success of submission, acceptance and approval of regulatory filings. Risks and uncertainties that Targacept faces are described in greater detail under the heading “Risk Factors” in Targacept’s most recent Annual Report on Form 10-K and in other filings that it makes with the Securities and Exchange Commission. As a result of the risks and uncertainties, the results or events indicated by the forward-looking statements may not occur. Targacept cautions you not to place undue reliance on any forward-looking statement.

In addition, any forward-looking statement in this press release represents Targacept’s views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Targacept disclaims any obligation to update any forward-looking statement, except as required by applicable law.

NNR Therapeutics™ and Building Health, Restoring Independence® are trademarks or service marks of Targacept, Inc. Any other service marks, trademarks and trade names appearing in this press release are the properties of their respective owners.