EXHIBIT 10.25

                   Summary of Executive Officer Bonus Program


         Penwest Pharmaceuticals Co. ("the Company") maintains a bonus program
for its executive officers that is administered by the Compensation Committee
(the "Committee") of the Board of Directors of the Company. This program
provides for an annual cash payout dependent on achievement by both the
executive and the Company of predetermined short-term operating goals and
longer-term strategic objectives. These goals also include Company goals and
individual goals. Our President's target bonus is based 100% upon achieving
Company goals. Individual incentive compensation target awards are set annually
by the Compensation Committee. These target awards are determined by salary
grade and are subject to an adjustment based on individual performance, and
typically range from 25%-40% of the executive's salary.