EXHIBIT 99.1



FOR IMMEDIATE RELEASE

Contact:
Matthew D. Haines
Director, Corporate Communications
(212) 297-6198
mhaines@nastech.com

Noonan Russo Presence Euro RSCG
David Walsey, 212-845-4257 (investors)
Robert Stanislaro, 212-845-4268 (media)

  NASTECH REACQUIRES NASCOBAL(R) (CYANOCOBALAMIN, USP) GEL FROM SCHWARZ PHARMA
            AND SIGNS CONTRACT SALES AGREEMENT WITH CARDINAL HEALTH

BOTHELL, WA, October 1, 2002 - Nastech Pharmaceutical Company Inc. (NASDAQ NMS:
NSTK) announced it has reacquired all product, patent, trademark, licensing and
regulatory rights for Nascobal(R) in the United States from Schwarz Pharma.
Under terms of the acquisition agreement, Nastech will pay Schwarz a total of
$8.75 million plus interest in installments over a four-year period, including
an upfront payment of $1.5 million. Under the agreement, Schwarz relinquishes
its rights to receive any consideration from Nastech from a second-generation
dosage form of cyanocobalamin as well as upon the future sale or license of
intranasal scopolamine. This latter agreement eliminates a contingent liability
from Nastech to Schwarz of approximately $4.0 million as of September 30, 2002.

In connection with Nastech's reacquiring all commercialization rights to
Nascobal, Nastech signed a contract sales agreement with Cardinal Health, Inc.,
a leading provider of products and services supporting the health care industry.
Under the terms of the agreement, Cardinal Health will detail Nascobal through a
network of 50 direct sales representatives who will regularly call on more than
6,000 gastroenterologists across the U.S. Nastech will pay Cardinal Health a
monthly fee for these contract sales services. Nastech will also conduct
promotional and marketing campaigns in support of sales of Nascobal, including a
comprehensive medical education campaign that encompasses a diversified mix of
journal ads, trade shows, medical education conferences, direct-to-consumer
advertising and the Internet.

"We are very excited to reacquire the rights to Nascobal(R)," stated Steven C.
Quay, M.D., Ph.D., Chairman, President, and Chief Executive Officer of Nastech.
"Since 94 percent of the 800,000 patients annually given Vitamin B12
prescriptions in the U.S. are for the intramuscular injection, converting these
prescriptions to Nascobal is a significant growth opportunity. In addition, with
approval of the NDA supplement in July 2002, Nascobal becomes the only cobalamin
formulation specifically labeled for treatment of vitamin B12 deficiency in
Crohn's disease and we look forward to working with Cardinal Health to expand
Nascobal's franchise with this patient population. Finally, this transaction
frees Nastech to fully exploit its nasal formulation expertise to enhance and
extend Nascobal's proprietary product lifecycle by developing a second
generation nasal dosage form, which has been under development for some time now
and which is currently in the final stage of clinical testing before FDA
submission."

In July 2002, the FDA approved a labeling supplement to the Nascobal(R) NDA that
states that Nascobal can be used in patients with HIV, AIDS, multiple sclerosis,
and Crohn's disease, conditions which can result in vitamin B12 deficiency, and
for which Nascobal is indicated to maintain hematologic status. Nastech
manufactures Nascobal at its FDA approved, cGMP facility in Hauppauge, New York.

Significant peer-reviewed published clinical research supports the importance of
the maintenance of proper vitamin B12 levels in this diverse group of patients.
For example: In a study of over 300 patients that were sero-positive for the
human immunodeficiency virus, participants with low serum vitamin B12
concentrations (< 120 pmol/L) had significantly shorter AIDS-free time than
those with adequate vitamin B12 concentrations (median AIDS-free time = 4 vs. 8
y, respectively, P = 0.004). With the high cost of therapy and the toxicity
associated with AIDS treatment, any process that extends the time from



sero-positivity to AIDS is significant and may contribute to the overall health
and well being of this patient group.

In one study, over 70 percent of AIDS patients had either frank vitamin B12
deficiency or had an abnormal Schilling test, a test of vitamin B12 oral
absorption. In addition, up to 30 percent of late stage AIDS patients have an
AIDS associated dementia complex, including a myeolopathy, that has recently
been shown to be associated with an abnormality of the vitamin B12-dependent
transmethylation pathway, the pathway by which the body maintains the
myelin-sheath (or insulation) that surrounds nerves.

Literally all Crohn's disease patients who have had a surgical resection have
vitamin B12 deficiency. Deficiency even predates surgery, probably due to the
malabsorption caused by the disease itself. One study found up to 60 percent of
patients with Crohn's disease who had not had surgery had signs of vitamin B12
deficiency.

In one study of over 200 consecutive, multiple sclerosis (MS) patients over 20
percent had abnormally low serum vitamin B12 levels. Cerebral spinal fluid
levels of vitamin B12 are also reduced in patients with MS and some
investigators speculate that vitamin B12 associated transmethylation may be an
important component in the demyelination that is characteristic of MS.

In the U.S. alone there are approximately 500,000 patients with Crohn's disease,
of which approximately 175,000 are candidates for vitamin B12 therapy. Among the
nation's 800,000 HIV and AIDS patients, between 10 and 20 percent, or 80,000 to
160,000 people are vitamin B12 deficient. Finally, over 350,000 people in the
U.S. have multiple sclerosis. Symptoms of vitamin B12 deficiency include
fatigue, weakness, sore tongue, forgetfulness, weight loss, lack of coordination
and difficulty walking. Vitamin B12 deficiency may lead to anemia, intestinal
problems, and irreversible nerve damage.

In addition certain drug therapies for cancer, viral infections (HIV and AIDS),
acid reflux and Gastroesophageal Reflux Disease (GERD) may lead to B12
deficiencies requiring B12 therapy.

Patients or physicians seeking additional information on Nascobal(R) should
contact Nastech's customer service department toll-free at 1-888-627-2579, or
email mailto:gcignarella@nastech.com, or visit our website at
http://www.nastech.com/nascobal.

NASTECH CONFERENCE CALL AND WEBCAST -- TODAY
Management will discuss the Nascobal transactions during a conference call
today, October 1, 2002, at 10:30 a.m. EST. The public is invited to access the
call via a live audio webcast at:
http://www.firstcallevents.com/service/ajwz366101982gf12.html.

A telephone replay of the conference call will also be available from
approximately 1:00 p.m. (EST) today through October 8, 2002. To access the
replay of the conference call, United States and Canadian participants should
call 800-934-2127. International callers should call 402-220-1139. The
Conference ID number is V834.

ABOUT NASTECH
Nastech Pharmaceutical Company Inc., recognized worldwide as a leader in nasal
drug delivery technology, is dedicated to improving patient care by using
"Formulation Science," a systematic approach to drug development using
biophysics, physical chemistry, and pharmacology to improve efficacy and safety,
and to provide new therapeutic options. Additional information on Nastech is
available at http://www.nastech.com/.

NASTECH SAFE HARBOR STATEMENT
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 including, without limitation, statements regarding the
following: (a) the growth of the Nascobal market over the next several years;
(b) the Company's expansion of the Nascobal franchise; and (c) the Company's
enhancement and expansion of Nascobal's proprietary lifecycle by the development
of a second generation nasal dosage form. There are a number of important
factors that could cause actual results to differ materially from those
projected or suggested in any



forward-looking statement made by the Company. These factors include, but are
not limited to: (i) the Company's and/or the Company's partner's ability to
successfully complete product research and development, including pre-clinical
and clinical studies and commercialization; (ii) the Company's and/or the
Company's partner's ability to obtain required governmental approvals, including
product and patent approvals; (iii) the Company's ability to attract and/or
maintain manufacturing, sales, distribution and marketing partners; and (iv) the
Company's and/or the Company's partner's ability to develop and commercialize
products before its competitors. In addition, significant fluctuations in
quarterly results may occur as a result of the timing of milestone payments and
the timing of costs and expenses related to the Company's research and
development program. A detailed discussion of additional factors that could
cause actual results to differ materially from those projected or suggested in
any forward-looking statements is contained in the Company's filings with the
Securities and Exchange Commission, including those factors discussed under the
caption "Risk Factors" in the Company's most recent Annual Report on Form 10-K.
Nastech undertakes no obligation to update forward-looking statements to reflect
events or circumstances occurring after the date of this press release.

ABOUT CARDINAL HEALTH, INC.
Cardinal Health, Inc. (www.cardinal.com) is the leading provider of products and
services supporting the health care industry. Cardinal Health companies develop,
manufacture, package and market products for patient care; develop drug-delivery
technologies; distribute pharmaceuticals, medical-surgical and laboratory
supplies; and offer consulting and other services that improve quality and
efficiency in health care. Headquartered in Dublin, Ohio, Cardinal Health
employs more than 49,000 people on five continents and produces annual revenues
of more than $44 billion. Cardinal Health is ranked #23 on the current Fortune
500 list and was named one of the "The World's Best" companies by Forbes
magazine in 2002.

CARDINAL HEALTH SAFE HARBOR STATEMENT
Except for historical information, all other information in this news release
consists of forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected, anticipated or implied. The most significant of
these uncertainties are described in Cardinal Health's Form 10-K, Form 8-K and
Form 10-Q reports and exhibits to those reports, and include (but are not
limited to) the costs, difficulties, and uncertainties related to the
integration of acquired businesses, the loss of one or more key customer or
supplier relationships, changes in the distribution outsourcing patterns for
health-care products and/or services, the costs and other effects of
governmental regulation and legal and administrative proceedings, and general
economic conditions. Cardinal undertakes no obligation to update or revise any
forward-looking statements.

Contact:
Matthew D. Haines
Director, Corporate Communications
(212) 297-6198
mhaines@nastech.com

Noonan Russo Presence Euro RSCG
David Walsey, 212-845-4257 (investors)
Robert Stanislaro, 212-845-4268 (media)