XY4083 is a preclinical development candidate for the treatment of the cognitive/sensory gating deficits of schizophrenia and for cognition enhancement (e.g. in Alzheimer’s disease). It selectively targets a novel allosteric modulatory site on the α7 nicotinic acetylcholine receptor (nAChR) subtype. Positive allosteric modulation of α7 nAChRs by XY4083 enhances currents evoked by nicotinic agonists (e.g. choline, acetylcholine) while preserving the rapid native kinetics of receptor desensitization. XY4083 is a lead compound within a series comprised of over two hundred analogues. It is orally active, has excellent potency in normalizing sensory gating deficits and enhances working memory in animal studies while maintaining a benign acute safety profile. Toxicology studies have been completed and an IND was approved by the FDA in November 2008.