Categories
· Business (Tobacco)
Organizations
· RJR
· Targacept
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Jump to full article: AP, 2000-08-24
Intro: R.J. Reynolds Tobacco Co. announced Thursday that it has spun off a drug development subsidiary, Targacept Inc., after securing $30.4 million in financing from venture capital firms.
Partners in the new privately held firm include EuclidSR Partners, Burrill & Co., Auriga Ventures, CDC Innovation, Genavent, Advent Venture Partners and Longleaf Venture Fund.
R.J. Reynolds, the nation's second bigest tobacco company with brands like Winston, Salem, Camel and Doral, will keep a 43 percent stake in the new company.
Targacept, formed in 1997, will continue to develop new compounds designed to treat Alzheimer's disease, Parkinson's disease, ulcerative colitis and other disorders, company officials said.
In addition, Targacept has an agreement with Aventis Pharmaceuticals Inc., signed in 1998, to develop new drugs to treat Alzheimer's and Parkinson's diseases.
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Quotes from this article:
This is a sound business decision for Targacept and Reynolds Tobacco. . . During the past decade, our scientists have developed great expertise in discovering new compounds and potential therapeutic uses of those compounds.
RJR CEO Andrew J. Schindler, on the spinoff of Targacept, which will continue to develop new compounds designed to treat Alzheimer's disease, Parkinson's disease, ulcerative colitis and other disorders. <I>R.J. Reynolds To Create Spinoff</I>
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