Exhibit 12.1
Targacept, Inc.
Computation of Ratio of Earnings to Fixed Charges
| 2005 | 2006 | 2007 | 2008 | 2009 | September 30, 2010 | |||||||||||||||||||
| (in thousands, except ratio) | ||||||||||||||||||||||||
Pretax income from operations | $ | (29,941 | ) | $ | (404 | ) | $ | (31,772 | ) | $ | (28,144 | ) | $ | (40,325 | ) | $ | 14,472 | |||||||
Add fixed charges | 719 | 578 | 859 | 964 | 930 | 642 | ||||||||||||||||||
Total Earnings | $ | (29,222 | ) | $ | 174 | $ | (30,913 | ) | $ | (27,180 | ) | $ | (39,395 | ) | $ | 15,114 | ||||||||
Interest Expense | 225 | 83 | 138 | 251 | 217 | 114 | ||||||||||||||||||
Estimate of the interest within rental expense* | 494 | 495 | 721 | 713 | 713 | 528 | ||||||||||||||||||
Total Fixed Charges | $ | 719 | $ | 578 | $ | 859 | $ | 964 | $ | 930 | $ | 642 | ||||||||||||
Ratio of earnings to fixed charges | — | — | — | — | — | 23.54 | ||||||||||||||||||
Deficiency of earnings to fixed charges | $ | (29,941 | ) | $ | (404 | ) | $ | (31,772 | ) | $ | (28,144 | ) | $ | (40,325 | ) | — | ||||||||
| * | Estimated to be one-third of rental payment. |
