Targacept has initiated a Phase II clinical proof of concept trial of its TC-5619 drug compound for cognitive dysfunction in schizophrenia.

The study will be carried out in the US and India across 200 subjects who are already taking an approved medication from the drug calls known as atypical anti-psychotics.

The trial is expected to finish by the end of 2010. Following its completion, AstraZeneca has the right to license TC-5619 under prearranged terms.