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news.Nastech Pharmaceutical is to undertake corporate restructuring initiatives aimed at reducing operating expenses and enhancing shareholder value. Nastech will also seek to establish its subsidiary, MDRNA, as an independent, separately financed company and will concentrate on Phase II clinical and partnered programs as well as cost containment strategies for the near-term.
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First, Nastech plans to concentrate its resources on its Phase II clinical development programs that are currently ongoing or planned including PYY3-36 nasal spray for obesity, insulin nasal spray for type II diabetes, and PTH1-34 nasal spray for osteoporosis.
Secondly, Nastech will move forward with the process of establishing MDRNA as an independent company. The new structure will give Nastech the ability to pursue independent investment to fund MDRNA’s operations. Nastech plans to pursue such funding in the near-term, subject to market conditions, and expects to retain significant ownership in MDRNA following such financing. In addition, Nastech intends to issue a dividend to Nastech’s shareholders of a portion of the MDRNA equity held by Nastech, and to effect the public trading of those securities through a Form 10 filing.
Nastech says the planned change in corporate structure will enable it to continue its focus on the development of peptide and protein drug delivery technologies while better positioning MDRNA for strategic alliances and direct investment as it develops RNAi therapeutics targeting a broad range of diseases.
Finally, Nastech is implementing a workforce reduction plan as soon as feasible to align with the company’s development and clinical plans, which will help to conserve cash, cash equivalents and investments which as of September 30, 2007 were $58.1 million.