CUSIP No. 87611R 30 6 Page 1 of 9 Pages
SECURITIES AND EXCHANGE COMMISSION
CityplaceWashington, StateD.C. 20549
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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. )1
Targacept Inc.
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(Name of Issuer)
Common Stock, $.001 par value
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(Title of Class of Securities)
87611R 30 6
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(CUSIP Number)
April 11, 2006
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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)
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(1) 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 disclosures provided in a prior cover page. The information required on
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 or otherwise
subject to the liabilities of that section of the Act but shall be subject to
all other provisions of the Act.
CUSIP No. 87611R 30 6 Page 2 of 9 Pages
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1) Name of Reporting Person EuclidSR Partners, L.P.
I.R.S. Identification
No. of Above Person
(Entities Only)
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2) Check the Appropriate Box (a) [X]
if a Member of a Group (b) [ ]
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3) SEC Use Only
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4) Citizenship or Place Delaware
of Organization
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Number of 5) Sole Voting 1,510,080 shares
Shares Beneficially Power of Common Stock
Owned by Each
Reporting Person
With
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6) Shared Voting Power -0-
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7) Sole Dispositive 1,510,080 shares
Power of Common Stock
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8) Shared Dispositive -0-
Power
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9) Aggregate Amount Beneficially 1,510,080 shares
Owned by Each Reporting of Common Stock
person
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10) Check if the Aggregate excludes 6,136 shares
Amount in Row (9) issuable upon
Excludes Certain Shares exercise of stock options
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11) Percent of Class
Represented by 7.9%
Amount in Row (9)
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12) Type of Reporting
Person PN
CUSIP No. 87611R 30 6 Page 3 of 9 Pages
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1) Name of Reporting Person EuclidSR Biotechnology
I.R.S. Identification Partners, L.P.
No. of Above Person
(Entities Only)
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2) Check the Appropriate Box (a) [X]
if a Member of a Group (b) [ ]
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3) SEC Use Only
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4) Citizenship or Place Delaware
of Organization
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Number of 5) Sole Voting 371,748 shares
Shares Beneficially Power of Common Stock
Owned by Each
Reporting Person
With
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6) Shared Voting Power -0-
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7) Sole Dispositive 371,748 shares
Power of Common Stock
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8) Shared Dispositive -0-
Power
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9) Aggregate Amount Beneficially 371,748 shares
Owned by Each Reporting of Common Stock
person
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10) Check if the Aggregate excludes 197 shares
Amount in Row (9) issuable upon
Excludes Certain Shares exercise of stock options
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11) Percent of Class
Represented by 1.9%
Amount in Row (9)
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12) Type of Reporting
Person PN
CUSIP No. 87611R 30 6 Page 4 of 9 Pages
Schedule 13G
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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) - Name of Person Filing:
This statement is being filed by EuclidSR Partners, L.P., a
Delaware limited partnership ("ESR Partners"), and EuclidSR
Biotechnology Partners, L.P., a Delaware limited partnership
("ESR Biotech") (together, the "Reporting Persons").
Item 2(b) - Address of Principal Business Office:
45 Rockefeller Plaza, Suite 3240
New York, NY 10111
Item 2(c) - Place of Organization:
ESR Partners: Delaware
ESR Biotech: Delaware
Item 2(d) - Title of Class of Securities:
Common Stock, $.001 par value
Item 2(e) - CUSIP Number: 87611R 30 6
Item 3 - Statements Filed Pursuant to Rules 13d-1(b) or 13d-2(b):
Not applicable.
CUSIP No. 87611R 30 6 Page 5 of 9 Pages
Item 4 - Ownership.
(a) Amount Beneficially Owned:
ESR Partners: 1,510,080 shares of Common Stock
ESR Biotech: 371,748 shares of Common Stock
(b) Percent of Class:
ESR Partners: 7.9%
ESR Biotech: 1.9%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote:
ESR Partners: 1,510,080 shares of Common Stock
ESR Biotech: 371,748 shares of Common Stock
(ii) shared power to vote or to direct the vote: -0-
(iii) sole power to dispose or to direct the disposition of:
ESR Partners: 1,510,080 shares of Common Stock
ESR Biotech: 371,748 shares of Common Stock
(iv) shared power to dispose or to direct the disposition of: -0-
In addition, ESR Partners holds stock options to purchase an aggregate
6,136 shares of Common Stock and ESR Biotech holds a stock option to purchase
197 shares of Common Stock.
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 Company:
Not applicable.
Item 8 - Identification and Classification of Members of the Group:
CUSIP No. 87611R 30 6 Page 6 of 9 Pages
See Exhibit 2.
Item 9 - Notice of Dissolution of Group:
Not applicable.
Item 10 - Certification:
Not applicable.
CUSIP No. 87611R 30 6 Page 7 of 9 Pages
Signature:
After reasonable inquiry and to the best of their knowledge and
belief, the undersigned certify that the information set forth in this statement
is true, complete and correct.
EUCLIDSR PARTNERS, L.P.
By: EuclidSR Associates, L.P., General
Partner
By /s/ Elaine V. Jones
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General Partner
EUCLIDSR BIOTECHNOLOGY PARTNERS, L.P.
By: EuclidSR Biotechnology Associates,
L.P., General Partner
By /s/ Elaine V. Jones
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General Partner
Date: February 23, 2007
CUSIP No. 87611R 30 6 Page 8 of 9 Pages
EXHIBIT 1
AGREEMENT OF
EUCLIDSR PARTNERS, L.P
AND
EUCLIDSR BIOTECHNOLOGY PARTNERS, L.P
PURSUANT TO RULE 13d-1(f)
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The undersigned hereby agree that the Information Statement on
Schedule 13G to which this Agreement is annexed as Exhibit 1 is filed on behalf
of each of them in accordance with provisions of 13d-1(f) under the Securities
Exchange Act of 1934, as amended.
EUCLIDSR PARTNERS, L.P.
By: EuclidSR Associates, L.P., General
Partner
By /s/ Elaine V. Jones
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General Partner
EUCLIDSR BIOTECHNOLOGY PARTNERS, L.P.
By: EuclidSR Biotechnology Associates,
L.P., General Partner
By /s/ Elaine V. Jones
--------------------------------------
General Partner
Date: February 23, 2007
CUSIP No. 87611R 30 6 Page 9 of 9 Pages
EXHIBIT 2
Identification and Classification
of Members of the Group
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EuclidSR Partners, L.P. and EuclidSR Biotechnology Partners, L.P. are
filing this statement on Schedule 13G as a group.
EuclidSR Partners, L.P. is a Delaware limited partnership. Its sole
general partner is EuclidSR Associates, L.P., a Delaware limited partnership.
EuclidSR Partners, L.P. is a Delaware limited partnership. Its sole
general partner is EuclidSR Associates, L.P., a Delaware limited partnership.