Mar 02, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Nastech Pharmaceutical
Company Inc. (Nasdaq: NSTK), a leader in developing therapeutics using
advanced molecular biology based drug delivery technologies, announced today
that it has reacquired its rights to PYY3-36 (PYY) nasal spray for treatment
of obesity from its collaboration partner, Merck & Co., Inc.
Nastech's agreement with Merck has terminated with receipt of Merck's
notice effective March 1, 2006. Merck's conclusion, based on the "Preliminary
Proof of Concept Study" it has conducted, is that Nastech's intra-nasal
formulation of PYY did not demonstrate efficacy. Nastech's review of the data
received from Merck to date indicates that Nastech's formulation is capable of
delivering PYY, via nasal administration to the blood stream, with an
acceptable nasal safety profile. Although there can be no assurance, Nastech
believes that with dose-ranging studies they will be able to identify an
appropriate dose or dosage regimen for intra-nasal PYY.
"Based on our review, Nastech believes that clinical trial results to date
support the continued development of this important investigational product
for the treatment of obesity, and we remain committed to the further
advancement of the PYY clinical program this year," stated Steven C. Quay,
M.D., Ph.D., Chairman, President and CEO of Nastech. "While we are
disappointed that we and Merck could not reach a mutually acceptable agreement
following discussions with a view to finding terms of agreement for the
continued development of PYY intranasal formulations under the collaboration
agreement, we will continue to advance the program. Nastech has both the
human and the financial resources to drive the rapid development of PYY for
obesity, and to also advance its other ongoing programs. Assuming successful
completion of further dose optimization studies, Nastech will undertake a
Phase II clinical trial program, after which Nastech intends to seek a new
commercial partnership for PYY with a major pharmaceutical company that has a
strong presence in metabolic diseases and that is capable of conducting
late-stage clinical development and worldwide commercialization in the obesity
"Nastech intends to cooperate with Merck in the production of a manuscript
to be submitted for publication concerning the clinical trials performed by
Merck. Merck noted that the 'interaction between Merck and Nastech has been
positive and professional', and that they 'would welcome the opportunity to
collaborate with Nastech again should the appropriate opportunity arise.'
Nastech as well would welcome the opportunity to work with Merck in the
Nastech expects to recognize approximately $3.7 million in revenue in the
first quarter due to such termination.
Conference Call and Webcast Information
Nastech management will host a conference call to discuss its development
plans for PYY. The call is scheduled for Monday, March 6, 2006, at 10:00 a.m.
Eastern Time (7:00 a.m. Pacific Time). To participate in the live conference
call, U.S. residents should dial (866) 700-7173 and international callers
should dial (617) 213-8838. The access code for the live conference call is
15309917. To access the 24-hour telephone replay, U.S. residents should dial
(888) 286-8010 and international callers should dial (617) 801-6888. The
access code for the replay is 38258491.
Alternatively, log on to http://www.nastech.com to access a live webcast
or the subsequent 30-day archive. Please connect to the Investor section of
Nastech's website several minutes prior to the start of the live conference
call to ensure adequate time for any software download that may be necessary.
We are a pharmaceutical company developing innovative products based on
proprietary molecular biology-based drug delivery technologies. We and our
collaboration partners are developing products for multiple therapeutic areas
including respiratory disease, inflammatory conditions, obesity and
osteoporosis. Additional information about Nastech is available at
Nastech Forward Looking Statements
Statements made in this press release may be forward-looking statements
within the meaning of Federal Securities laws that are subject to certain
risks and uncertainties and involve factors that may cause actual results to
differ materially from those projected or suggested. Factors that could cause
actual results to differ materially from those in forward-looking statements
include, but are not limited to: (i) the ability of Nastech to obtain
additional funding; (ii) the ability of Nastech to attract and/or maintain
manufacturing, research, development and commercialization partners; (iii)
Nastech's and/or a partner's ability to successfully complete product research
and development, including preclinical and clinical studies and
commercialization; (iv) Nastech's and/or a partner's ability to obtain
required governmental approvals; and (v) Nastech's and/or a partner's ability
to develop and commercialize products that can compete favorably with those of
competitors. Additional factors that could cause actual results to differ
materially from those projected or suggested in any forward-looking statements
are contained in Nastech's most recent periodic reports on Form 10-K and Form
10-Q that are filed with the Securities and Exchange Commission. Nastech
assumes no obligation to update and supplement forward-looking statements
because of subsequent events.
Nastech Pharmaceutical Company Inc.
Senior Investor Relations Manager
Matthew Haines (Investors/Media)
SOURCE Nastech Pharmaceutical Company Inc.
Ed Bell, Senior Investor Relations Manager of Nastech, +1-425-908-3639,
email@example.com; Matthew Haines of Noonan Russo for Nastech (Investors/Media),