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CUSIP NO. 87611R306 13D PAGE 1 OF 22 PAGES
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )*
Targacept, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.001 par value per share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
87611R306
- --------------------------------------------------------------------------------
(CUSIP Number)
Louis S. Citron, Esq.
New Enterprise Associates
1119 St. Paul Street, Baltimore, MD 21202
(410)246-2927
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
January 17, 2008
- --------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. [_]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss.240.13d-7 for other
parties to whom copies are to be sent.
*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 ("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).
PERSONS WHO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS FORM ARE
NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL
NUMBER.
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Page 1 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 2 OF 22 PAGES
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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 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
- ----- -------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware Limited Partnership
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0 shares
----- --------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,569,845 shares
OWNED BY ----- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares
WITH ----- --------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,569,845 shares
- ----- -------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,569,845 shares
- ----- -------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.8%
- ----- -------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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Page 2 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 3 OF 22 PAGES
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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)[_]
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3 SEC USE ONLY
- ----- -------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
- ----- -------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware Limited Partnership
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7 SOLE VOTING POWER
0 shares
----- --------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,569,845 shares
OWNED BY ----- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares
WITH ----- --------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,569,845 shares
- ----- -------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,569,845 shares
- ----- -------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.8%
- ----- -------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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Page 3 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 4 OF 22 PAGES
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Michael James Barrett
- ----- -------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a)[_]
(b)[_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
- ----- -------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States citizen
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7 SOLE VOTING POWER
27,500 shares
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,569,845 shares
OWNED BY ----- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 2,7500 shares
WITH ----- --------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,569,845 shares
- ----- -------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,597,345 shares
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.9%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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Page 4 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 5 OF 22 PAGES
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Peter J. Barris
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a)[_]
(b)[_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States citizen
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0 shares
----- --------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,569,845 shares
OWNED BY ----- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares
WITH ----- --------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,569,845 shares
- ----- -------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,569,845 shares
- ----- -------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [_]
- ----- -------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.8%
- ----- -------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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CUSIP NO. 87611R306 13D PAGE 6 OF 22 PAGES
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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)[_]
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3 SEC USE ONLY
- ----- -------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
- ----- -------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
- ----- -------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States citizen
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0 shares
----- --------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,569,845 shares
OWNED BY ----- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares
WITH ----- --------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,569,845 shares
- ----- -------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,569,845 shares
- ----- -------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [_]
- ----- -------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.8%
- ----- -------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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CUSIP NO. 87611R306 13D PAGE 7 OF 22 PAGES
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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)[_]
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3 SEC USE ONLY
- ----- -------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
- ----- -------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
- ----- -------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States citizen
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0 shares
----- --------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,569,845 shares
OWNED BY ----- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares
WITH ----- --------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,569,845 shares
- ----- -------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,569,845 shares
- ----- -------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [_]
- ----- -------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.8%
- ----- -------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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CUSIP NO. 87611R306 13D PAGE 8 OF 22 PAGES
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Mark W. Perry
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a)[_]
(b)[_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
- ----- -------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
- ----- -------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States citizen
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0 shares
----- --------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,569,845 shares
OWNED BY ----- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares
WITH ----- --------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,569,845 shares
- ----- -------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,569,845 shares
- ----- -------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [_]
- ----- -------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.8%
- ----- -------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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CUSIP NO. 87611R306 13D PAGE 9 OF 22 PAGES
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Scott D. Sandell
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a)[_]
(b)[_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
- ----- -------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
- ----- -------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States citizen
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0 shares
----- --------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,569,845 shares
OWNED BY ----- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares
WITH ----- --------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,569,845 shares
- ----- -------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,569,845 shares
- ----- -------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [_]
- ----- -------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.8%
- ----- -------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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CUSIP NO. 87611R306 13D PAGE 10 OF 22 PAGES
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Eugene A. Trainor III
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a)[_]
(b)[_]
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3 SEC USE ONLY
- ----- -------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
- ----- -------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
- ----- -------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States citizen
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0 shares
----- --------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,563,512 shares
OWNED BY ----- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares
WITH ----- --------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,563,512 shares
- ----- -------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,563,512 shares
- ----- -------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [_]
- ----- -------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.8%
- ----- -------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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Page 10 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 11 OF 22 PAGES
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Schedule 13D
Item 1. Security and Issuer.
-------------------
This statement relates to the Common Stock, $.001 par value (the
"Common Stock") of Targacept, Inc. (the "Issuer") having its principal executive
office at 200 East First Street, Suite 300, Winston-Salem, NC 27101.
Item 2. Identity and Background.
-----------------------
This statement is being filed by New Enterprise Associates 10, Limited
Partnership ("NEA 10"), NEA Partners 10, Limited Partnership ("NEA Partners
10"), which is the sole general partner of NEA 10, and Michael James Barrett
("Barrett"), Peter J. Barris ("Barris"), C. Richard Kramlich ("Kramlich"),
Charles W. Newhall III ("Newhall"), Mark W. Perry ("Perry"), Scott D. Sandell
("Sandell") and Eugene A. Trainor III ("Trainor"), (collectively, the "General
Partners"). The General Partners are the individual general partners of NEA
Partners 10. NEA 10, NEA Partners 10 and the General Partners are sometimes
referred to collectively herein as the "Reporting Persons."
The address of the principal business office of NEA 10, NEA Partners
10, Barrett, Barris, Newhall and Trainor is New Enterprise Associates, 1119 St.
Paul Street, Baltimore, MD 21202. The address of the principal business office
of Kramlich, Perry and Sandell is New Enterprise Associates, 2490 Sand Hill
Road, Menlo Park, California 94025.
The principal business of NEA 10 is to invest in and assist
growth-oriented businesses located principally in the United States. The
principal business of NEA Partners 10 is to act as the sole general partner of
NEA 10. The principal business of each of the General Partners is to act as a
general partner of NEA Partners 10 and a number of affiliated partnerships with
similar businesses.
During the five years prior to the date hereof, none of the Reporting
Persons has been convicted in a criminal proceeding or has been a party to a
civil proceeding ending in a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
Each of NEA 10 and NEA Partners 10 is a limited partnership organized
under the laws of the State of Delaware. Each of the General Partners is a
United States citizen.
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
NEA 10 acquired the 1,300,000 shares of Common Stock from the Issuer
for an aggregate purchase price of $9,191,000 on January 17, 2008. No part of
the purchase price in the transaction was represented by funds or other
consideration borrowed or otherwise obtained for the purpose of acquiring,
holding, trading or voting the shares.
Item 4. Purpose of Transaction.
----------------------
NEA 10 acquired the Common Stock for investment purposes. Depending on
market conditions, its continuing evaluation of the business and prospects of
the Issuer and other factors, NEA 10 and other Reporting Persons may dispose of
or acquire additional shares of the Issuer. Except as set forth above, none of
the Reporting Persons has any present plans which relate to or would result in:
(a) The acquisition by any person of additional securities of the
Issuer, or the disposition of securities of the Issuer;
Page 11 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 12 OF 22 PAGES
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(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Issuer or any of its
subsidiaries;
(c) A sale or transfer of a material amount of assets of the Issuer or
any of its subsidiaries;
(d) Any change in the present board of directors or management of the
Issuer, including any plans or proposals to change the number or
term of directors or to fill any existing vacancies on the board;
(e) Any material change in the present capitalization or dividend
policy of the Issuer;
(f) Any other material change in the Issuer's business or corporate
structure;
(g) Changes in the Issuer's charter, bylaws or instruments
corresponding thereto or other actions which may impede the
acquisition of control of the Issuer by any person;
(h) Causing a class of securities of the Issuer to be delisted from a
national securities exchange or to cease to be authorized to be
quoted in an inter-dealer quotation system of a registered
national securities association;
(i) A class of equity securities of the Issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the
Securities Exchange Act of 1934; or
(j) Any action similar to any of those enumerated above.
Item 5. Interest in Securities of the Issuer.
------------------------------------
(a) NEA 10 is the record owner of 4,563,512 shares of Common Stock
(the "NEA 10 Shares"). As the sole general partner of NEA 10, NEA
Partners 10 may be deemed to own beneficially the NEA 10 Shares.
As the individual general partners of NEA Partners 10, each of the
General Partners also may be deemed to own beneficially the NEA 10
Shares.
New Enterprise Associates, Inc. (f/k/a NEA Development Corp.), a
Delaware corporation ("NEA, Inc.") is the beneficial owner of
2,000 shares and options to purchase 4,333 shares of Common Stock
exercisable within sixty days ("NEA, Inc. Shares") of the Issuer.
As members of New Enterprise Associates, LLC ("NEA LLC"), which is
the sole owner of NEA, Inc., each of Barrett, Barris, Kramlich,
Newhall, Perry and Sandell may also be deemed to beneficially own
the NEA, Inc. Shares. Additionally, Barrett holds options to
purchase 27,500 shares, which are exercisable within 60 days (the
"Barrett Shares").
By virtue of their relationship as affiliated entities, whose
controlling entities have overlapping individual controlling
persons, each of the Reporting Persons, with the exception of
Trainor, may be deemed to beneficially own the NEA 10 Shares and
the NEA, Inc. Shares for an aggregate of 4,569,845 shares (the
"Firm Shares"). Barrett may be deemed to beneficial own the Firm
Shares and the Barrett Shares for a aggregate of 4,597,345 shares.
Each of the Reporting Persons may be deemed to own beneficially
18.8% of the Issuer's Common Stock, which percentage is calculated
based upon 24,303,419 shares reported to be outstanding in the
Issuer's Form 424B2 Prospectus filed January 17, 2008. Each of the
Reporting Persons, except NEA 10 and NEA, Inc., disclaims
beneficial ownership of the Shares except to the extent of their
pecuniary interest therein, if any.
Page 12 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 13 OF 22 PAGES
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Peter T. Morris, who was reported as beneficially owning
3,269,845 shares of the Issuer's Common Stock on the Form SC 13G
filed February 13, 2007, has ceased to own beneficially five
percent (5%) or more of the Issuer's outstanding Common Stock.
(b) Regarding the number of shares as to which such person has:
(i) sole power to vote or to direct the vote: See line 7 of
cover sheets.
(ii) shared power to vote or to direct the vote: See line 8 of
cover sheets.
(iii) sole power to dispose or to direct the disposition: See line
9 of cover sheets.
(iv) shared power to dispose or to direct the disposition: See
line 10 of cover sheets.
(c) Except as set forth in Item 3 above, none of the Reporting Persons
has effected any transaction in the Common Stock during the last
60 days.
(d) No other person is known to have the right to receive or the power
to direct the receipt of dividends from, or any proceeds from the
sale of, Shares beneficially owned by any of the Reporting
Persons.
(e) Not Applicable.
Item 6. Contracts, Arrangements, Undertakings or Relationships with Respect
-------------------------------------------------------------------
to Securities of the Issuer.
---------------------------
Not applicable.
Item 7. Material to be Filed as Exhibits.
--------------------------------
Exhibit 1 - Agreement regarding filing of joint Schedule 13D.
Exhibit 2 - Powers of Attorney regarding Schedule 13D filings.
Page 13 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 14 OF 22 PAGES
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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: January 28, 2008
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
*
- ----------------------------------
Charles W. Newhall III
*
- ----------------------------------
Mark W. Perry
Page 14 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 15 OF 22 PAGES
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*
- ----------------------------------
Scott D. Sandell
*
- ----------------------------------
Eugene A. Trainor III
*/s/ Louis S. Citron
-----------------------------------
Louis S. Citron
As attorney-in-fact
This Schedule 13D 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.
Page 15 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 16 OF 22 PAGES
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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 13D need be filed with respect to the ownership
by each of the undersigned of shares of stock of Targacept, Inc.
EXECUTED this 28th day of January, 2008.
NEW ENTERPRISE ASSOCIATES 10,
LIMITED PARTNERSHIP
By: NEA PARTNERS 10, LIMITED PARTNERSHIP
General Partner
By: */s/ Louis S. Citron
------------------------------------
Charles W. Newhall III
General Partner
NEA PARTNERS 10, LIMITED PARTNERSHIP
By: */s/ Louis S. Citron
------------------------------------
Charles W. Newhall III
General Partner
*/s/ Louis S. Citron
- ----------------------------------
Michael James Barrett
*/s/ Louis S. Citron
- ----------------------------------
Peter J. Barris
*
- ----------------------------------
C. Richard Kramlich
*/s/ Louis S. Citron
- ----------------------------------
Charles W. Newhall III
Page 16 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 17 OF 22 PAGES
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*/s/ Louis S. Citron
- ----------------------------------
Mark W. Perry
*/s/ Louis S. Citron
- ----------------------------------
Scott D. Sandell
*/s/ Louis S. Citron
- ----------------------------------
Eugene A. Trainor III
*/s/ Louis S. Citron
-----------------------------------
Louis S. Citron
As attorney-in-fact
This Agreement relating to Schedule 13D was executed by Louis S. Citron on
behalf of the individuals listed above pursuant to Powers of Attorney, copies of
which are attached hereto as Exhibit 2.
Page 17 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 18 OF 22 PAGES
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EXHIBIT 2
---------
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
/s/ Peter T. Morris
--------------------------------
Peter T. Morris
Page 18 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 19 OF 22 PAGES
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/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
Page 19 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 20 OF 22 PAGES
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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
Page 21 of 22 pages
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CUSIP NO. 87611R306 13D PAGE 22 OF 22 PAGES
===================== ===================
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
Page 22 of 22 pages