NPS PHARMACEUTICALS ANNOUNCES
                   CANADIAN GOVERNMENT $5.78 MILLION (U.S.)
                    FUNDING FOR ALLELIX BIOPHARMACEUTICALS


NPS PHARMACEUTICALS, INC.
SALT LAKE CITY, UT USA


     SALT LAKE CITY, Nov. 9 /PRNewswire/ -- NPS Pharmaceuticals, Inc. (Nasdaq:
NPSP), today announced that the Canadian government has agreed to make an
investment in NPS's proposed merger partner, Allelix Biopharmaceuticals Inc.
through a program known as Technology Partnerships Canada. The $5.78 million
(U.S.) investment will support the clinical research and development of ALX-
0600, a potential new drug for the treatment of gastrointestinal disorders.

     In September, NPS and Allelix announced that they have agreed to a merger,
which is expected to close in January 2000.  The merged company will operate as
NPS Pharmaceuticals, Inc. in the U.S. and as NPS Allelix Inc. in Canada. NPS
believes that the Technology Partnerships Canada investment will provide a
significant financial boost to the clinical development of ALX-0600.  In return
for making the investment, Allelix has agreed to pay the Canadian government a
royalty on revenues derived from products resulting from the development of ALX-
0600.  If proven to be safe and effective, this drug will address a significant
medical need with the potential to reach a sizable market.

     Thousands of people around the world suffer from gastrointestinal ailments
that have serious effects on their quality of life.  Early studies indicate that
ALX-0600, an analog of the naturally occurring glucagon-like peptide 2, has the
ability to stimulate the regeneration of cells lining the small intestine. These
cells are important to maintaining the integrity of the intestinal wall and to
aiding the absorption of nutrients from food.  ALX-0600 thus presents a
promising new treatment that could be used to combat damage to the intestine
caused by short bowel syndrome, inflammatory bowel disease, the side effects of
chemotherapy and radiation treatments, and other conditions.

     "We are pleased that the Canadian government has seen fit to make this
investment in what we believe is a very important program," said Dr. Hunter
Jackson, Chairman, President and CEO of NPS. "This will assist the combined
company in proceeding aggressively with the development of a proprietary
compound while meeting our cash management objectives."

     Technology Partnerships Canada is a Special Operating Agency of Industry
Canada responsible for making strategic investments in technological development
projects.  Created in 1996, Technology Partnerships Canada makes investments in
high technology growth sectors of the Canadian economy including enabling
technologies, environmental technologies, and aerospace and defense.

     Following the merger of NPS and Allelix, the combined company will have a
deep pipeline of late-stage clinical programs and preclinical programs involving
recombinant peptides and small molecules that address a variety of important
human diseases.

     Additional information regarding the merger of NPS and Allelix, as well as
the programs of the combined companies may be obtained by contacting David
Clark, Director, Corporate Communications and Development at NPS
Pharmaceuticals, at (801) 583-4939 or Paul Van Damme, Senior Vice President and
Chief Financial Officer at Allelix Biopharmaceuticals, at (905) 677-0831. The
NPS web page (http://www.npsp.com) also contains additional information
regarding the merger, other press releases, and a link to the Allelix web page.