Targacept Scientists to Present at Society for Neuroscience Satellite Meeting

  Targacept Scientists to Present at Society for Neuroscience Satellite
  Meeting

 Talks to Highlight Ongoing Programs and Opportunities to Diversify Pipeline

Business Wire

WINSTON-SALEM, N.C. -- October 15, 2013

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 4^th 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 4^th Bi-Annual Satellite Meeting to the Society for Neuroscience
Annual Meeting, please visit https://www.cmpinc.net/nicotinic2013/home.html.

TARGACEPT

Building Health, Restoring Independence®

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.

Contact:

Targacept, Inc.
Alan Musso, SVP, Finance and Administration and CFO
336-480-2186
alan.musso@targacept.com
or
Linnden Communications
Michelle Linn, 508-362-3087
linnmich@comcast.net