EXHIBIT 99.1

[LOGO NASTECH]

FOR IMMEDIATE RELEASE

       NASTECH PHARMACEUTICAL ENTERS INTO COMMERCIALIZATION AGREEMENT FOR

            NASAL CALCITONIN FOR OSTEOPOROSIS WITH PAR PHARMACEUTICAL

BOTHELL, WA, OCTOBER 25, 2004 - Nastech Pharmaceutical Company Inc. (Nasdaq:
NSTK) ("Nastech") today announced that it has entered into an exclusive license
and supply agreement with Par Pharmaceutical, Inc. (NYSE:PRX) ("Par") for U.S.
distribution and marketing of Nastech's calcitonin-salmon nasal spray for the
treatment of osteoporosis. This collaboration combines Nastech's strengths in
preclinical and clinical product development, nasal drug formulation and
delivery, and commercial-scale nasal manufacturing with Par's experience and
expertise in the sales and marketing of generic pharmaceutical products.

Under the terms of the agreement, Nastech is responsible for obtaining
regulatory approval and will manufacture the product in its New York and
Washington facilities, providing finished calcitonin-salmon nasal spray product
to Par in accordance with the license and supply agreement. Par will exclusively
market, sell and distribute the product in the U.S. market. The financial terms
of the agreement include an upfront payment, regulatory and post-approval
milestone payments, payments for final manufactured product, and a profit
sharing arrangement following commercial launch.

In February 2004, Nastech announced that the U.S. Food and Drug Administration
(FDA) accepted for filing Nastech's 505(j) paragraph 4 Abbreviated New Drug
Application (ANDA) for the product. In June, Nastech announced that the FDA had
conducted a successful Pre-Approval Inspection of our calcitonin manufacturing
facility with no cited deviations from current Good Manufacturing Practices.

"This collaboration has important strategic value for Nastech. We have leveraged
our proprietary drug delivery technology and state-of-the-art manufacturing
capabilities to advance this program and create significant financial value for
the company," said Steven C. Quay, M.D., Ph.D., Chairman, President and Chief
Executive Officer of Nastech. "We believe Par represents an excellent partner
with significant experience in specialty pharmaceutical marketing and the
resources to maximize the commercial potential of this product candidate. This
agreement has the potential to make a considerable, ongoing financial
contribution to Nastech following the approval of this product."

"We view Par's partnership with Nastech as a unique opportunity to expand our
strong generic franchise into proven intranasal delivery," said Scott Tarriff,
President and Chief Executive Officer of Par Pharmaceutical. "We look forward to
working with Nastech to advance this product into commercialization."



"The decrease in bone mass in postmenopausal women is well established and
recent studies have identified a corresponding increase in cartilage
degradation," explained Harris H. McIllwain, M.D., C.M.D., Tampa Medical Group
Research and Chairman of the Florida Osteoporosis Board. "This month at the
annual meeting of the American College of Rheumatology, data from an early
clinical study suggested that calcitonin-salmon may reduce such cartilage
degradation in post-menopausal women with osteoarthritis and we are intrigued by
the clinical potential of this product to meet an important unmet medical need
in osteoarthritis treatment."

Novartis AG currently markets calcitonin-salmon nasal spray under the brand name
Miacalcin(R). The product is indicated for the treatment of postmenopausal
osteoporosis and aggregate pharmaceutical sales estimates for the osteoporosis
market were roughly $8 billion in 2003. If successful, this product will compete
with the branded formulation of calcitonin-salmon nasal spray, with current
annual sales estimated at approximately $240 million in the U.S.

ABOUT CALCITONIN

The decrease in bone mass, known as osteoporosis, in postmenopausal women is
well established. Women, who until recently took estrogens for osteoporosis, are
now in search of safer means of limiting the decrease in bone mass. Calcitonin
is a hormone produced by the thyroid gland that acts primarily on bone. Bone is
in a constant state of remodeling, whereby old bone is removed by cells called
osteoclasts, and new bone is laid down by cells called osteoblasts. Calcitonin
inhibits bone removal by osteoclasts, and promotes bone formation by
osteoblasts. A currently approved and marketed intranasal calcitonin has been
shown to increase spinal bone mass in postmenopausal women with established
osteoporosis and is the only osteoporosis treatment specifically labeled to be
used in women in whom estrogens are contraindicated. Human calcitonin has a very
short half-life in the blood stream and therefore the longer acting salmon
calcitonin is used therapeutically.

ABOUT PAR

Par Pharmaceutical Companies, Inc. develops, manufactures and markets generic
pharmaceuticals through its principal subsidiary, Par Pharmaceutical, Inc., and
its recently acquired subsidiary, Kali Laboratories, Inc. The company is also
developing an additional line of branded pharmaceutical products for specialty
markets and expects to introduce the first of these in 2005. Par currently
manufactures, markets or licenses more than 80 prescription drugs. For press
release and other company information, visit http://www.parpharm.com.

ABOUT NASTECH

Nastech Pharmaceutical Company Inc. is a 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 http://www.nastech.com.

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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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CONTACTS FOR NASTECH:
Stacie D. Byars
Director, Investor Relations
(425) 908-3639
ir@nastech.com

Burns McClellan
Kathy Jones, Ph.D. (Media)
(212) 213-0006

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