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By M. Paul Jackson
JOURNAL REPORTER

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With its quiet period over, Targacept Inc. is once again talking to the public.

Targacept, a biotechnology company in Winston-Salem , is hitting the road to re-acquaint investors and biotechnology experts with its business, after the company's failed initial public offering three months ago.

Targacept plans another attempt to go public, but officials said yesterday that they had no immediate target date.

Informing the public about its research is "all about expanding awareness," said Don deBethizy, Targacept's chief executive.

DeBethizy spoke about the company and its future during a tour of its laboratories by U.S. Rep. Virginia Foxx, R-5th.

Targacept, in the Piedmont Triad Research Park , announced plans in May 2004 to go public, but it abandoned the plan in March, citing investors' unwillingness to meet its proposed share price, as well as a poorly performing stock market. The company had planned to sell about 6.25 million shares of stock for between $11 and $13 a share.

Since withdrawing its IPO, Targacept officials have traveled to technology conferences in New York , Baltimore and Italy to promote their research, deBethizy said.

In addition, deBethizy is scheduled to be a presenter at a conference in San Francisco next week and at a similar conference in Philadelphia later this month.

"To differentiate yourself and get people's attention, you need to communicate what you have," he said.

Under Securities and Exchange Commission rules, companies that announce plans to go public cannot promote their stock. This quiet period made it difficult for Targacept to communicate with noninvestors, deBethizy said.

The presentation tour is also an attempt to reassure potential new investors of its products. In April and May, Targacept officials spoke at two conferences held by investment banks that had overseen its failed IPO.

"When you have an opportunity to present at these, and basically reinforce your story, you don't miss out," said Alan Musso, the company's chief financial officer.

Targacept, which has 82 employees, was spun out from R.J. Reynolds Tobacco Co. in 2000. It is developing drugs based on nicotine's effects on the central nervous system to target such illnesses as Alzheimer's disease, cognitive impairment and schizophrenia.

Targacept has proven to be a heavy-hitter in raising venture capital. It has raised about $123 million since 2000.

The company filed documents with the SEC on May 20 to recognize about $600,000 it received from investors after it withdrew its IPO, but that filing was not connected to its plans to go public, Musso said.

"I think everybody looks at Targacept and expects that this company has substance," he said. "This company will be a public company at some point."

• M. Paul Jackson can be reached at 727-7473 or at mjackson@wsjournal.com