TAK-071 is primarily investigated for its potential therapeutic applications in the treatment of cognitive disorders, particularly those associated with Alzheimer's disease and other forms of dementia. It functions as a selective muscarinic M1 receptor positive allosteric modulator, which enhances the activity of the M1 receptor. This receptor plays a crucial role in cognitive processes such as learning and memory.

In preclinical studies, TAK-071 has shown promise in improving cognitive function by enhancing cholinergic signaling, which is often impaired in neurodegenerative diseases. By targeting the M1 receptor, it aims to restore or improve memory and cognitive abilities without the side effects commonly associated with non-selective cholinergic drugs.

Research is ongoing to evaluate its efficacy, safety, and potential as a treatment option for patients with cognitive impairments. Its development represents a targeted approach to addressing the underlying mechanisms of cognitive decline in neurodegenerative conditions.