EXHIBIT 99.1
[NASTECH LOGO] [MERCK LOGO]
Nastech Pharmaceutical Company Inc. and Merck & Co., Inc. Announce
Co-Development And Co-Promotion Alliance for Investigational PYY3-36 Nasal
Spray for Treatment of Obesity
BOTHELL, WASH. and WHITEHOUSE STATION, N.J., Sept. 27, 2004 - Nastech
Pharmaceutical Company Inc. and Merck & Co., Inc. announced today that they have
entered into a global alliance to develop and commercialize Peptide YY 3-36
Nasal Spray (PYY), Nastech's Phase I product for the treatment of obesity.
Under the terms of the agreement, Nastech will receive an initial cash
payment of $5 million and will be eligible to receive up to $131 million if all
development milestones and approval milestones are achieved and up to $210
million in sales-related milestones. Nastech will also receive royalties on
product sales. In addition, Merck will reimburse Nastech for
manufacturing-related development activities and will purchase finished product
from Nastech upon commercialization. Additional financial terms were not
disclosed.
Nastech and Merck will jointly develop PYY. Merck will assume primary
responsibility for clinical and non-clinical studies and regulatory approval,
while Nastech will be responsible for all manufacturing of PYY-related product.
Merck will lead and fund commercialization, with Nastech having an option to
co-promote the product in the United States.
"Nastech's innovative research and development capabilities are reflected
in its rapid advancement of PYY," said Peter S. Kim, Ph.D., president of Merck
Research Laboratories. "Our alliance with Nastech recognizes the potential of
PYY as a possible treatment for obesity, a disease with significant unmet
medical need."
"It is extremely encouraging to see groundbreaking research in obesity
applied toward the development of potential treatments to target this epidemic,"
said Barbara Corkey, Ph.D., president of the North American Association for the
Study of Obesity, the nation's leading scientific society dedicated to advancing
research and treatment of obesity.
"Nastech is honored to have formed an alliance with Merck, a company that
has long enjoyed a reputation for high standards for ethical conduct and
breakthrough medical research," said Steven C. Quay, M.D., Ph.D., chairman,
president and chief executive officer of Nastech.
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"Our alliance with Merck represents a major step forward in meeting our key
objective of forging collaborations with market leaders to advance our pipeline
of innovative new drugs. We look forward to working with Merck to continue the
rapid advancement of PYY."
ABOUT PYY
The investigational PYY3-36 Nasal Spray, currently in Phase I development,
is designed to deliver the natural, appetite-regulating hormone PYY directly to
the bloodstream. Nastech has completed three Phase I clinical trials, each
designed to answer specific questions regarding safety, tolerability, dosing and
scheduling.
PYY AND OBESITY
Peptide YY is a naturally occurring hormone that has been implicated as a
physiologic inhibitor of food intake. PYY is produced by specialized endocrine
cells (L-cells) in the gut after a person eats and is believed to trigger the
feeling of satiety, or fullness. Because PYY is a protein, initial studies
focused on PYY delivery by injection. Utilizing its proprietary drug delivery
technology, Nastech developed the nasal spray formulation of PYY as a unique,
non-invasive treatment option for obesity.
Obesity is a leading health threat facing Americans and is the second
leading cause of preventable death in the United States. Obesity is a chronic
condition that affects millions of people and often requires long-term or
invasive treatment to promote and sustain weight loss. It is estimated that
approximately 127 million, or 64.5 percent, of adults in the United States are
overweight and 60 million, or 30.5 percent, are obese. An estimated 400,000
deaths a year in the United States may be attributable to poor diet and physical
inactivity.
CONFERENCE CALL AND WEB CAST
Nastech management will host a conference call at 10 a.m. ET on Monday,
Sept. 27, to discuss the collaboration and its PYY3-36 program. The dial-in
number for participants in the Unites States and Canada is (800) 822-4794 and
for international callers is (913) 981-4912. An audio replay of the call will be
available for seven days beginning at 12 p.m. ET on Sept. 27. To access the
replay, U.S. and Canadian residents should dial (888) 203-1112 and international
callers should dial (719) 457-0820, referencing passcode 939714. A Web cast of
this call will also be available for 30 days on Nastech's Web site at
www.nastech.com.
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ABOUT NASTECH
Nastech Pharmaceutical Company Inc. is an emerging pharmaceutical company
dedicated to the development and commercialization of innovative drug delivery
technologies and products. The company's proprietary technologies focus on the
delivery of small and large molecule drugs by nasal administration. These drugs
include peptides, proteins and RNAi therapeutics. Intranasal drug delivery may
lead to greater drug efficacy, speed of action, safety, and patient compliance.
Nastech is developing a diverse product portfolio across multiple therapeutic
areas, including products targeted for the treatment of obesity, sexual
dysfunction, pain management, and osteoporosis. Additional information about
Nastech is available at www.nastech.com.
ABOUT MERCK
Merck & Co., Inc. is a global research-driven pharmaceutical products
company. Merck discovers, develops, manufactures and markets a broad range of
innovative products to improve human and animal health, directly and through its
joint ventures.
NASTECH FORWARD-LOOKING STATEMENT
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
pre-clinical 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 that become untrue because of subsequent events.
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MERCK FORWARD-LOOKING STATEMENT
This press release contains "forward-looking statements" as that term is
defined in the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties, which may cause results to differ
materially from those set forth in the statements. The forward-looking
statements may include statements regarding product development, product
potential or financial performance. No forward-looking statement can be
guaranteed, and actual results may differ materially from those projected. Merck
undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or otherwise.
Forward-looking statements in this press release should be evaluated together
with the many uncertainties that affect Merck's business, particularly those
mentioned in the cautionary statements in Item 1 of Merck's Form 10-K for the
year ended Dec. 31, 2003, and in its periodic reports on Form 10-Q and Form 8-K
(if any), which the company incorporates by reference.
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CONTACTS:
NASTECH:
Investor Contact: Stacie D. Byars
(425) 908-3639
ir@nastech.com
BURNS MCCLELLAN:
Media Contact: Kathy Jones, Ph.D.
(212) 213-0006
MERCK:
Media Contact: Janet Skidmore
(908) 423-3046
janet_skidmore@merck.com
Investor Contact: Michael Rabinowitz
(908) 423-5185
michael_rabinowitz@merck.com