Oct 8 (Reuters) - Targacept Inc said it would cutits workforce to 43, or by about 38 percent, due to the failureof its attention deficit hyperactivity disorder drug, andexpects the move to save about $9.6 million per year beginningnext year.
Last month, the company said it would stop developing thedrug, TC-5619, after a mid-stage trial showed that patients inthe placebo group had improved more than those taking theexperimental drug.
Targacept expects one-time severance and other charges ofabout $1.5 million in the fourth quarter due to the layoffs.
The company, which will have 43 employees after the jobcuts, has cash and investments of about $195.0 million andexpects them to be enough to fund operations through at least2015.
According to its website, Targacept is running several otherpartnered and unpartnered trials related to schizophrenia,Alzheimer's disease and overactive bladder.
Targacept shares were up 1 percent to $4.59 on the Nasdaq onMonday.
(Reporting by Esha Dey in Bangalore; Editing by SreejirajEluvangal)
Keywords: TARGACEPT JOBCUT/