SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
SCHEDULE 13G
(RULE 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES 13D-1(b)
(c), AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(b)
(AMENDMENT NO. --)*
TARGACEPT, INC.
----------------------------------
(Name of Issuer)
COMMON STOCK, $.001 PAR VALUE PER SHARE
-----------------------------------------------
(Title of Class of Securities)
87611R306
-----------------
(CUSIP Number)
DECEMBER 31, 2006
-------------------------------------------
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[ ] Rule 13d-1(c)
[X] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 2 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
New Enterprise Associates 10, Limited Partnership
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,263,512
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,263,512
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,263,512
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 3 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
NEA Partners 10, Limited Partnership
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,263,512
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,263,512
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,263,512
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 4 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
M. James Barrett
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,269,845
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,269,845
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,269,845
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 5 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Peter J. Barris
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,269,845
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,269,845
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,269,845
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 6 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
C. Richard Kramlich
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,269,845
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,269,845
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,269,845
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 7 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Peter T. Morris
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,269,845
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,269,845
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,269,845
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 8 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Charles W. Newhall III
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,269,845
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,269,845
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,269,845
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 9 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Mark W. Perry
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,269,845
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,269,845
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,269,845
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 10 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Scott D. Sandell
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,269,845
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,269,845
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,269,845
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 11 OF 21
- -------------------- ----------------
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Eugene A. Trainor III
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,263,512
OWNED BY
EACH --------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,263,512
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,263,512
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
17.1%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 12 OF 21
- -------------------- ----------------
ITEM 1(a). NAME OF ISSUER: Targacept, Inc.
ITEM 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
200 East First Street, Suite 300, Winston-Salem, NC 27101
ITEM 2(a). NAMES OF PERSONS FILING: New Enterprise Associates 10, Limited
Partnership (the "Fund"); NEA Partners 10, Limited Partnership,
which is the sole general partner of the Fund (the "GPLP"); and M.
James Barrett ("Barrett"), Peter J. Barris ("Barris"), C. Richard
Kramlich ("Kramlich"), Peter T. Morris ("Morris"), Charles W.
Newhall III ("Newhall"), Mark W. Perry ("Perry"), Scott D. Sandell
("Sandell") and Eugene A. Trainor III ("Trainor") (collectively,
the "Individual General Partners") who are the individual general
partners of the GPLP. The persons named in this paragraph are
referred to individually herein as a "Reporting Person" and
collectively as the "Reporting Persons."
ITEM 2(b). ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE: The
address of the principal business office of the Fund, the GPLP,
Barrett, Newhall and Trainor is New Enterprise Associates, 1119
St. Paul Street, Baltimore, Maryland 21202. The address of the
principal business office of Kramlich, Morris, Perry and Sandell
is New Enterprise Associates, 2490 Sand Hill Road, Menlo Park,
California 94025. The address of the principal business office of
Barris is 11951 Freedom Drive, Suite 1240, Reston, Virginia 20190.
ITEM 2(c). CITIZENSHIP: The Fund and the GPLP are limited partnerships
organized under the laws of the State of Delaware. Each of the
Individual General Partners is a United States citizen.
ITEM 2(d). TITLE OF CLASS OF SECURITIES: Common Stock, $.001 par value
("Common Stock").
ITEM 2(e). CUSIP NUMBER: 87611R306.
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO SS.SS. 240.13d-1(b) OR
240.13d-2(b) OR (c), CHECK WHETHER THE PERSON FILING IS A:
Not applicable.
ITEM 4. OWNERSHIP.
(a) Amount Beneficially Owned: the Fund is the record owner of
3,263,512 shares of Common Stock (the "NEA 10 Shares") as
of December 31, 2006. As the sole general partner of the
Fund, the GPLP may be deemed to own beneficially the NEA 10
Shares. As the individual general partners of the GPLP, the
sole general partner of the Fund, each of the Individual
General Partners may also be deemed to beneficially own the
NEA 10 Shares.
NEA Development Corp., a Delaware corporation ("NEA
Development") is the beneficial owner of 1,000 shares and
options to purchase 5,333 shares of Common Stock exercisable
within sixty days ("NEA Development Shares") of the Issuer.
As members of New Enterprise Associates, LLC ("NEA LLC"),
which is the sole owner of NEA Development, each of Barrett,
Barris, Kramlich, Morris, Newhall, Perry and Sandell may
also be deemed to beneficially own the NEA Development
Shares.
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 13 OF 21
- -------------------- ----------------
By virtue of their relationship as affiliated entities,
whose controlling entities have overlapping individual
controlling persons, each of the Reporting Persons may be
deemed to share the power to direct the disposition and vote
of the NEA 10 Shares and the NEA Development Shares for an
aggregate of 3,264,512 shares (the "Firm Shares"). As
general partner of the Fund, the GPLP may also be deemed to
own beneficially the Firm Shares.
(b) Percent of Class: See Line 11 of cover sheets. The
percentages set forth on the cover sheets are calculated
based on 19,119,745 shares of Common Stock reported to be
outstanding by the Issuer in Form 10-Q as filed with the
Securities and Exchange Commission on November 13, 2006 for
the period ending September 30, 2006.
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: See Line 5
of cover sheets.
(ii) shared power to vote or to direct the vote: See Line
6 of cover sheets.
(iii) sole power to vote or to direct the vote: See Line 7
of cover sheets.
(iv) shared power to dispose or to direct the disposition
of: See Line 8 of cover sheets.
Each Reporting Person disclaims beneficial ownership of such
shares of Common Stock except for the shares, if any, such
Reporting Person holds of record.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
Not applicable.
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Not applicable.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY
WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT
HOLDING COMPANY.
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
Not applicable. The Reporting Persons expressly disclaim
membership in a "group" as used in Rule 13d-5(b).
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not applicable.
ITEM 10. CERTIFICATION.
Not applicable. This statement on Schedule 13G is not filed
pursuant to Rule 13d-1(b) or Rule 13d-1(c).
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 14 OF 21
- -------------------- ----------------
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief, each
of the undersigned certifies that the information set forth in this statement is
true, complete and correct.
Date: February 12, 2007
NEW ENTERPRISE ASSOCIATES 10,
LIMITED PARTNERSHIP
By: NEA PARTNERS 10, LIMITED PARTNERSHIP
General Partner
By: *
--------------------------------
Charles W. Newhall III
General Partner
NEA PARTNERS 10, LIMITED PARTNERSHIP
By: *
--------------------------------
Charles W. Newhall III
General Partner
*
- ------------------------------------------
Michael James Barrett
*
- ------------------------------------------
Peter J. Barris
*
- ------------------------------------------
C. Richard Kramlich
*
- ------------------------------------------
Peter T. Morris
*
- ------------------------------------------
Charles W. Newhall III
*
- ------------------------------------------
Mark W. Perry
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 15 OF 21
- -------------------- ----------------
*
- ------------------------------------------
Scott D. Sandell
*
- ------------------------------------------
Eugene A. Trainor III
*By: /s/ Louis S. Citron
-------------------------------
Louis S. Citron
As attorney-in-fact
This Schedule 13G was executed by Louis S. Citron on behalf of the individuals
listed above pursuant to Powers of Attorney, copies of which are attached as
Exhibit 2.
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 16 OF 21
- -------------------- ----------------
EXHIBIT 1
AGREEMENT
Pursuant to Rule 13d-1(k)(1) under the Securities Exchange Act of 1934,
the undersigned hereby agree that only one statement containing the information
required by Schedule 13G need be filed with respect to the ownership by each of
the undersigned of shares of stock of Targacept, Inc.
EXECUTED this 12th day of February, 2007.
NEW ENTERPRISE ASSOCIATES 10,
LIMITED PARTNERSHIP
By: NEA PARTNERS 10, LIMITED PARTNERSHIP
General Partner
By: *
-------------------------------
Charles W. Newhall III
General Partner
NEA PARTNERS 10, LIMITED PARTNERSHIP
By: *
-------------------------------------
Charles W. Newhall III
General Partner
*
- ------------------------------------------
Michael James Barrett
*
- ------------------------------------------
Peter J. Barris
*
- ------------------------------------------
C. Richard Kramlich
*
- ------------------------------------------
Peter T. Morris
*
- ------------------------------------------
Charles W. Newhall III
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 17 OF 21
- -------------------- ----------------
*
- ------------------------------------------
Mark W. Perry
*
- ------------------------------------------
Scott D. Sandell
*
- ------------------------------------------
Eugene A. Trainor III
*By: /s/ LOUIS S. CITRON
------------------------------
Louis S. Citron
As attorney-in-fact
This Agreement was executed by Louis S. Citron on behalf of the individuals
listed above pursuant to Powers of Attorney, copies of which are attached as
Exhibit 2.
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 18 OF 21
- -------------------- ----------------
EXHIBIT 2
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below hereby constitutes and appoints Nancy L. Dorman, Charles W. Newhall III,
Louis S. Citron and Eugene A. Trainor III, and each of them, with full power to
act without the others, his true and lawful attorney-in-fact, with full power of
substitution, to sign any and all instruments, certificates and documents that
may be necessary, desirable or appropriate to be executed on behalf of himself
as an individual or in his capacity as a general partner of any partnership,
pursuant to section 13 or 16 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), and any and all regulations promulgated thereunder, and to
file the same, with all exhibits thereto, and any other documents in connection
therewith, with the Securities and Exchange Commission, and with any other
entity when and if such is mandated by the Exchange Act or by the By-laws of the
National Association of Securities Dealers, Inc., granting unto said
attorney-in-fact full power and authority to do and perform each and every act
and thing necessary, desirable or appropriate, fully to all intents and purposes
as he might or could do in person, thereby ratifying and confirming all that
said attorney-in-fact, or his substitutes, may lawfully do or cause to be done
by virtue hereof.
IN WITNESS WHEREOF, this Power of Attorney has been signed as of the 1st
day of January, 2001.
/s/ Stewart Alsop II
---------------------------------------
Stewart Alsop II
/s/ Peter J. Barris
---------------------------------------
Peter J. Barris
/s/ Nancy L. Dorman
---------------------------------------
Nancy L. Dorman
/s/ Ronald Kase
---------------------------------------
Ronald Kase
/s/ C. Richard Kramlich
---------------------------------------
C. Richard Kramlich
/s/ Arthur J. Marks
---------------------------------------
Arthur J. Marks
/s/ Thomas C. McConnell
---------------------------------------
Thomas C. McConnell
- -------------------- ----------------
Cusip No. 87611R306 13G Page 19 of 21
- -------------------- ----------------
/s/ Peter T. Morris
---------------------------------------
Peter T. Morris
/s/ John M. Nehra
---------------------------------------
John M. Nehra
/s/ Charles W. Newhall III
---------------------------------------
Charles W. Newhall III
/s/ Mark W. Perry
---------------------------------------
Mark W. Perry
/s/ Scott D. Sandell
---------------------------------------
Scott D. Sandell
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 20 OF 21
- -------------------- ----------------
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below hereby constitutes and appoints Nancy L. Dorman, Charles W. Newhall III,
Louis S. Citron and Eugene A. Trainor III, and each of them, with full power to
act without the others, his true and lawful attorney-in-fact, with full power of
substitution, to sign any and all instruments, certificates and documents that
may be necessary, desirable or appropriate to be executed on behalf of himself
as an individual or in his capacity as a general partner of any partnership,
pursuant to section 13 or 16 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), and any and all regulations promulgated thereunder, and to
file the same, with all exhibits thereto, and any other documents in connection
therewith, with the Securities and Exchange Commission, and with any other
entity when and if such is mandated by the Exchange Act or by the By-laws of the
National Association of Securities Dealers, Inc., granting unto said
attorney-in-fact full power and authority to do and perform each and every act
and thing necessary, desirable or appropriate, fully to all intents and purposes
as he might or could do in person, thereby ratifying and confirming all that
said attorney-in-fact, or his substitutes, may lawfully do or cause to be done
by virtue hereof.
IN WITNESS WHEREOF, this Power of Attorney has been signed as of the 19th
day of October, 2001.
/s/ Michael James Barrett
---------------------------------------
Michael James Barrett
- -------------------- ----------------
CUSIP NO. 87611R306 13G PAGE 21 OF 21
- -------------------- ----------------
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the person whose signature appears
below hereby constitutes and appoints Nancy L. Dorman, Charles W. Newhall III
and Louis S. Citron, and each of them, with full power to act without the
others, his true and lawful attorney-in-fact, with full power of substitution,
to sign any and all instruments, certificates and documents that may be
necessary, desirable or appropriate to be executed on behalf of himself as an
individual or in his capacity as a general partner of any partnership, pursuant
to section 13 or 16 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and any and all regulations promulgated thereunder, and to file
the same, with all exhibits thereto, and any other documents in connection
therewith, with the Securities and Exchange Commission, and with any other
entity when and if such is mandated by the Exchange Act or by the By-laws of the
National Association of Securities Dealers, Inc., granting unto said
attorney-in-fact full power and authority to do and perform each and every act
and thing necessary, desirable or appropriate, fully to all intents and purposes
as he might or could do in person, thereby ratifying and confirming all that
said attorney-in-fact, or his substitutes, may lawfully do or cause to be done
by virtue hereof.
IN WITNESS WHEREOF, this Power of Attorney has been signed as of the 21st
day of April, 2002.
/s/ Eugene A. Trainor III
-------------------------------------
Eugene A. Trainor III