=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 1 OF 22 PAGES
=====================                                        ===================

================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                  SCHEDULE 13D


                    UNDER THE SECURITIES EXCHANGE ACT OF 1934
                               (AMENDMENT NO. 1)*


                                 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.
================================================================================
                                EXPLANATORY NOTE

THIS AMENDMENT IS BEING FILED SOLELY TO CORRECT TYPOGRAPICAL ERRORS ON THE
SIGNATURE PAGES IN THE ORIGINAL FILING.

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 2 OF 22 PAGES
=====================                                        ===================

================================================================================
  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)  [_]

- -----  -------------------------------------------------------------------------
  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)                                                    [_]

- -----  -------------------------------------------------------------------------
 13    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

       18.8%
- -----  -------------------------------------------------------------------------
 14    TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

       PN
================================================================================

                               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)[_]

- -----  -------------------------------------------------------------------------
  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

       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)                                                    [_]

- -----  -------------------------------------------------------------------------
 13    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

       18.8%
- -----  -------------------------------------------------------------------------
 14    TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

       PN
================================================================================

                               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)[_]

- -----  -------------------------------------------------------------------------
  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

                        27,500 shares
                 -----  --------------------------------------------------------
  NUMBER OF        8    SHARED VOTING POWER
   SHARES
BENEFICIALLY            4,569,845 shares
  OWNED BY       -----  --------------------------------------------------------
    EACH           9    SOLE DISPOSITIVE POWER
  REPORTING
   PERSON               27,500 shares
    WITH         -----  --------------------------------------------------------
                  10    SHARED DISPOSITIVE POWER

                        4,569,845 shares
- -----  -------------------------------------------------------------------------
 11    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

       4,597,345 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)

       18.9%
- -----  -------------------------------------------------------------------------
 14    TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

       IN
================================================================================

                               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
- -----  -------------------------------------------------------------------------
  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)

       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
================================================================================

                               Page 5 of 22 pages

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CUSIP NO.   87611R306                  13D                   PAGE 6 OF 22 PAGES
=====================                                        ===================

================================================================================
  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    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
================================================================================

                               Page 6 of 22 pages

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CUSIP NO.   87611R306                  13D                   PAGE 7 OF 22 PAGES
=====================                                        ===================

================================================================================
  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    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
================================================================================

                               Page 7 of 22 pages

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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
- -----  -------------------------------------------------------------------------
  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)

       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
================================================================================

                               Page 8 of 22 pages

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CUSIP NO.   87611R306                  13D                    PAGE 9 OF 22 PAGES
=====================                                         ==================

================================================================================
  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    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
================================================================================

                               Page 9 of 22 pages

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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
- -----  -------------------------------------------------------------------------
  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)

       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
================================================================================

                               Page 10 of 22 pages

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CUSIP NO.   87611R306                  13D                   PAGE 11 OF 22 PAGES
=====================                                        ===================

                                  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

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 12 OF 22 PAGES
=====================                                        ===================

         (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

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 13 OF 22 PAGES
=====================                                        ===================

              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

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 14 OF 22 PAGES
=====================                                        ===================

                                    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

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 15 OF 22 PAGES
=====================                                        ===================



         *
- ----------------------------------
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

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 16 OF 22 PAGES
=====================                                        ===================

                                                                       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:      *
         ------------------------------------
         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

                               Page 16 of 22 pages

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 17 OF 22 PAGES
=====================                                        ===================




      *
- ----------------------------------
Mark W. Perry


      *
- ----------------------------------
Scott D. Sandell


      *
- ----------------------------------
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

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 18 OF 22 PAGES
=====================                                        ===================

                                                                       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

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 19 OF 22 PAGES
=====================                                        ===================


                                                /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

=====================                                        ===================
CUSIP NO.   87611R306                  13D                   PAGE 20 OF 22 PAGES
=====================                                        ===================

                                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

=====================                                        ===================
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