AN EXPERIMENTAL treatment for attention deficit hyperactivity disorder from Targacept did not meet the main goal of a mid-stage trial, prompting the company to drop development of the drug and cut jobs.

Targacept shares fell as much as 12.4 per cent yesterday after the results showed that patients in the placebo group had improved more than those taking the experimental drug, TC-5619.

The company did not specify how many people it would lay off, but said it would limit investment in the development of certain products in its pipeline until it appoints a new CEO. In June, chief executive Donald deBethizy stepped down. His role is being assumed by chairman Mark Skaletsky pending the appointment of a new CEO.

Mr DeBethizys departure followed disappointing results from trials of Targacept’s treatments for diabetes and asthma, which prompted the company to cut its workforce by 46 per cent, or 65 jobs. In March, Targacept and partner AstraZeneca said they would abandon work on their experimental antidepressant after it failed to meet key goals in two late-stage clinical studies. – (Reuters)