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Nastech Announces Third Quarter 2007 Financial Results
Date:10/29/2007

BOTHELL, Wash., Oct. 29 /PRNewswire-FirstCall/ -- Nastech Pharmaceutical Company Inc. (Nasdaq: NSTK) today reported financial results for the three- and nine-month periods ended September 30, 2007.

Revenue for the quarter ended September 30, 2007 was $1.9 million, compared to $5.5 million for the quarter ended September 30, 2006. The 2006 period included revenue of $4.8 million related to our Parathyroid Hormone (PTH1-34) nasal spray collaboration with Procter & Gamble Pharmaceuticals, Inc. ("P&G"). Revenue for the nine months ended September 30, 2007 was $11.7 million, compared to $23.7 million for the nine months ended September 30, 2006. The 2007 period included receipt and recognition of a $2.0 million payment from QOL Medical LLC related to the June 2007 issuance of a patent by the U.S. Patent and Trademark Office for Nascobal(R) nasal spray, and revenue recognized related to our collaboration agreement with P&G, revenue from our other agreements including Novo Nordisk A/S and Amylin Pharmaceuticals, Inc. and approximately $0.2 million in Nascobal(R) product revenue. The prior year nine month period included recognition of approximately $3.7 million in previously deferred revenue from Merck & Co., Inc. related to our PYY(3-36) obesity program, a $7.0 million milestone payment and reimbursement revenue related to our development agreement with P&G, revenue from other agreements and approximately $0.6 million in Nascobal(R) product revenue.

Net loss for the current quarter was $16.5 million, or $0.66 per share, as compared to a net loss of $7.8 million, or $0.36 per share for the prior year period. The net loss for the nine months ended September 30, 2007 was $40.4 million or $1.62 per share, as compare
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