<HTML>
<HEAD>
<TITLE>FORM S-8</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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<DIV align="center" style="font-size: 10pt;">
<B>As filed with the Securities and Exchange Commission on
July&nbsp;26, 2005</B>
</DIV>

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</FONT></DIV>

<DIV align="right" style="font-size: 10pt;">
<B>Registration
No.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>
</DIV>

<DIV align="center" style="font-size: 6pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>Washington, DC 20549</B>
</DIV>

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</DIV>

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<B>Form&nbsp;S-8</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>AND POST-EFFECTIVE AMENDMENT NO. 1</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>REGISTRATION STATEMENT</B>
</DIV>

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</FONT></DIV>

<DIV align="center" style="font-size: 12pt;">
<B>UNDER THE SECURITIES ACT OF 1933</B>
</DIV>

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</FONT></DIV>

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<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 22pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Nastech Pharmaceutical Company Inc.</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Exact name of registrant as specified in its charter)</I>
</DIV>

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<TR style="font-size: 1pt;">
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
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<TR>
    <TD align="center" valign="top">
    <B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>2834</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>11-2658569</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I>(State or other jurisdiction of<BR>
    incorporation or organization)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(Primary Standard Industrial<BR>
    Classification Code Number)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(I.R.S. Employer<BR>
    Identification Number)</I></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>3450 Monte Villa Parkway</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Bothell, Washington 98021</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(425)&nbsp;908-3600</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Address of Principal Executive Offices)</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>NASTECH PHARMACEUTICAL COMPANY INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>2004 STOCK INCENTIVE PLAN</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Full Title of the Plan)</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Dr.&nbsp;Steven C. Quay</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Chairman, President and Chief Executive Officer</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Nastech Pharmaceutical Company Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>3450 Monte Villa Parkway</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Bothell, Washington 98021</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Name and Address of Agent for Service)</I>
</DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>(425)&nbsp;908-3600</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Telephone Number, Including Area Code, of Agent for
Service)</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Copies to:</I></B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Blake Hornick,&nbsp;Esq.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Pryor Cashman Sherman&nbsp;&#38; Flynn LLP</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>410&nbsp;Park Avenue</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>New York, New York 10022</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(212) 326-0133</B>
</DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
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<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>


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    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="center" nowrap><B>Title of Securities</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Amount to be</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Proposed&nbsp;Maximum&nbsp;Offering</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Proposed Maximum</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Amount of</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="center" nowrap><B>to be Registered</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Registered(1)</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Price per Security(2)</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Aggregate&nbsp;Offering&nbsp;Price(2)</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Registration&nbsp;Fee(2)</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Nastech Pharmaceutical Company Inc. 2004 Stock Incentive Plan
    Common Stock ($0.006&nbsp;par value)</DIV>
    </TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    1,350,000(3)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $13.90(4)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $18,765,000(4)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $2,208.64(5)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Pursuant to Rule&nbsp;416(a) under the Securities Act of 1933,
    as amended (the &#147;Securities Act&#148;), this Registration
    Statement shall also cover any additional shares of Nastech
    Pharmaceutical Company Inc. (the &#147;Company&#148;) common
    stock, par value $0.006&nbsp;per share (the &#147;Common
    Stock&#148;), which become issuable under the Nastech
    Pharmaceutical Company Inc. 2004 Stock Incentive Plan (the
    &#147;Plan&#148;) by reason of any stock dividend, stock split,
    recapitalization or other similar transaction effected without
    the receipt of consideration which results in an increase in the
    number of the outstanding shares of common stock of Nastech
    Pharmaceutical Company Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    In U.S.&nbsp;dollars or the equivalent thereof denominated in
    one or more foreign currencies or units of two or more foreign
    currencies or composite currencies. Estimated solely for the
    purposes of calculating the registration fee and exclusive of
    accrued interest, if any.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Pursuant to Rule&nbsp;429(b) under the Securities Act, the
    1,350,000&nbsp;shares of Common Stock being registered hereunder
    includes 600,000&nbsp;shares of Common Stock issuable pursuant
    to the Plan that were previously registered on a registration
    statement on Form&nbsp;S-8 (No.&nbsp;333-118206) filed by the
    Company with the Securities and Exchange Commission on
    August&nbsp;13, 2004. Accordingly, this registration statement
    also constitutes post-effective amendment no. 1 to such earlier
    registration statement.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Calculated in accordance with Rule&nbsp;457(c) of the Securities
    Act, solely for the purpose of calculating the registration fee
    on the basis of the average of the high and low prices of our
    Common Stock as reported by The Nasdaq National Market on
    July&nbsp;22, 2005.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    Pursuant to General Instruction E of Form&nbsp;S-8, a filing fee
    of $1,227.03 is being paid solely with respect to the 750,000
    additional shares of Common Stock being registered on this
    Registration Statement, calculated in accordance with
    Rule&nbsp;457(o) under the Securities Act at the statutory rate
    of $117.70&nbsp;per $1,000,000 of securities registered.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left" style="font-size: 9pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Explanatory Notes</B>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to Rule&nbsp;429(b) under the Securities Act, this
registration statement, which is a new registration statement,
also constitutes post-effective amendment no. 1 to registration
statement no. 333-118206 on Form&nbsp;S-8, filed with the
Securities and Exchange Commission on August&nbsp;13, 2004.
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
Included on the immediately following pages is a &#147;reoffer
prospectus.&#148; The reoffer prospectus is filed as part of
this registration statement on Form&nbsp;S-8, has been prepared
in accordance with the requirements of Part&nbsp;I of
Form&nbsp;S-3, and pursuant to Rule&nbsp;429(a), is a combined
prospectus which also relates to shares of Common Stock
registered on registration statement no. 333-118206 on
Form&nbsp;S-8. It may be used for reoffers of Common Stock
defined as &#147;control securities&#148; under
Instruction&nbsp;C to Form&nbsp;S-8 acquired by
&#147;affiliates&#148; (as the term is defined in Rule&nbsp;405
under the Securities Act) pursuant to awards of restricted
shares of Common Stock or the exercise of stock options pursuant
to the 2004 Plan.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<B>PROSPECTUS</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Nastech Pharmaceutical Company Inc.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>941,052&nbsp;shares</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 14pt;">
<B>of</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This reoffer prospectus is a combined prospectus relating to
shares of our common stock, par value $0.006&nbsp;per share (the
&#147;Common Stock&#148;), that have been registered with the
Securities and Exchange Commission on (i)&nbsp;the registration
statement on Form&nbsp;S-8 of which this reoffer prospectus is
filed as a part thereof, and (ii)&nbsp;the registration
statement on Form&nbsp;S-8 (File No.&nbsp;333-118206) of which
this prospectus is a part thereof pursuant to Rule&nbsp;429
under the Securities Act of 1933, as amended.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The persons listed as our selling stockholders in this
prospectus (the &#147;Selling Stockholders&#148;) are offering
and selling up to 941,052&nbsp;shares of our Common Stock issued
to the Selling Stockholders pursuant to awards under our 2004
Stock Incentive Plan, including 341,052 restricted shares of
Common Stock and 600,000&nbsp;shares of Common Stock that have
been or hereafter may be acquired by such Selling Stockholders
upon the exercise of options to purchase Common Stock. All net
proceeds from the sale of the shares of Common Stock offered by
this prospectus will go to the Selling Stockholders. We will not
receive any proceeds from such sales.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Selling Stockholders may offer their shares of Common Stock
through public or private transactions, in the over-the-counter
markets or on any exchanges on which our Common Stock is traded
at the time of sale, at prevailing market prices or at privately
negotiated prices. The Selling Stockholders may engage brokers
or dealers who may receive commissions or discounts from the
Selling Stockholders. We will pay substantially all of the
expenses incident to the registration of such shares, except for
the selling commissions.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our shares of common stock trade on the Nasdaq National Market
under the symbol &#147;NSTK.&#148; On July&nbsp;25, 2005, the
last sale price of the shares as reported on the Nasdaq National
Market was $13.91&nbsp;per share.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>You should carefully read and consider the risk factors
beginning on page&nbsp;19 in our Annual Report on
Form&nbsp;10-K/ A for the year ended December&nbsp;31, 2004 for
risks relating to investments in our securities.</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Our mailing address and telephone number are:
</DIV>

<DIV align="center" style="font-size: 10pt;">
3450 Monte Villa Parkway
</DIV>

<DIV align="center" style="font-size: 10pt;">
Bothell, Washington 98021
</DIV>

<DIV align="center" style="font-size: 10pt;">
(425)&nbsp;908-3600
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal
offense.</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The date of this prospectus is July&nbsp;26, 2005
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<!-- PAGEBREAK -->
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<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 10pt;">
<!-- TOC -->
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="93%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#101'>Information About The Company</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#102'>Forward-Looking Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#103'>Use of Proceeds</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#104'>Selling Stockholders</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#105'>Plan of Distribution</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#106'>Description of Common Stock</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#107'>Legal Matters</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#108'>Experts</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#109'>Where You Can Find More Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y11069exv5w1.htm">EX-5.1: OPINION OF PRYOR CASHMAN SHERMAN & FLYNN LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y11069exv23w1.htm">EX-23.1: CONSENT OF KPMG LLP</A></FONT></TD></TR>
</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
<!-- /TOC -->
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should rely only on the information contained in or
incorporated by reference into this prospectus. We have not
authorized any person to give any information or to make any
representations other than those contained or incorporated by
reference in this prospectus, and, if given or made, you must
not rely upon such information or representations as having been
authorized. This prospectus does not constitute an offer to sell
or the solicitation of an offer to buy any securities other than
the securities described in this prospectus or an offer to sell
or the solicitation to buy such securities in any circumstances
in which such offer or solicitation is unlawful. You should not
assume that the information we have included in this prospectus
is accurate as of any date other than the date of this
prospectus or that any information we have incorporated by
reference is accurate as of any date other than the date of the
document incorporated by reference regardless of the time of
delivery of this prospectus or of any securities registered
hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This document includes product names, trade names and trademarks
of other companies. All such product names and trademarks
appearing in this document are the property of their respective
holders.
</DIV>

<P align="center" style="font-size: 10pt;">i

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Unless the context otherwise requires, all references in this
prospectus to &#147;Nastech,&#148; &#147;Company,&#148;
&#147;registrant,&#148; &#147;we,&#148; &#147;us&#148; or
&#147;our&#148; include Nastech Pharmaceutical Company Inc., a
Delaware corporation, and any subsidiaries or other entities
controlled by us. All references in this prospectus to
&#147;common stock&#148; refer to our common stock, par value
$0.006&nbsp;per share.</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='101'></A>
</DIV>

<!-- link1 "INFORMATION ABOUT THE COMPANY" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INFORMATION ABOUT THE COMPANY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Overview</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are a pharmaceutical company focusing on development and
commercialization of innovative products based on proprietary
molecular biology-based intranasal drug delivery technology for
delivering both small and large molecule drugs. Using this
technology, we create or utilize novel formulation components or
excipients that can transiently manipulate or open &#147;tight
junctions&#148; between cells in various tissues and thereby
allow therapeutic drugs to reach the blood stream. Tight
junctions are cell-to-cell connections in various tissues of the
body, including epithelial and endothelial layers of the
intranasal mucosa, the gastrointestinal tract, and the blood
brain barrier. They function to provide barrier integrity and to
regulate the transport and passage of molecules across these
natural boundaries. This technology is the foundation of our
intranasal drug delivery platform, although some of our product
candidates utilize our expertise outside this area. Generally,
we seek to apply our technology to compounds that we license to,
or acquire from, collaborators or other third parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe our intranasal drug delivery technology offers
advantages over injectable routes for the administration of
large molecules such as peptides and proteins. These advantages
may include improved safety and clinical efficacy and increased
patient compliance due to the elimination of injection site pain
and avoidance of injection site irritation. In addition, we
believe our intranasal drug delivery technology offers
advantages over oral administration by providing for faster
absorption into the bloodstream, reduced side effects and
improved effectiveness by avoiding problems relating to
gastrointestinal and liver metabolism. We are utilizing our
technologies to develop commercial products, initially with
collaboration partners. In select cases, we also plan to
internally develop, manufacture and commercialize our products.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We and our collaboration partners are developing a diverse
portfolio of product candidates for multiple therapeutic areas
including obesity, osteoporosis and breakthrough cancer pain.
Our lead product
candidate, Peptide YY<SUB>(3-36)</SUB> for obesity, is in
Phase&nbsp;I clinical trials and is being developed with our
collaboration partner Merck&nbsp;&#38; Co. Inc. Additionally, we
are developing two product candidates for the treatment of
osteoporosis. Parathyroid Hormone PTH<SUB>(1-34)</SUB> is in
Phase&nbsp;I clinical trials, and we have filed an abbreviated
new drug application for our generic calcitonin-salmon
intranasal spray which we are developing with our collaboration
partner Par Pharmaceutical Inc. As of June&nbsp;30, 2005, we
have 33&nbsp;patents issued and 165 patent applications filed to
protect our proprietary technologies.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For a more detailed description of our business, please see our
periodic reports on Forms&nbsp;10-K, 10-Q and 8-K that we file
with the Securities and Exchange Commission.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">1

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Employees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We had 114&nbsp;full-time employees at June&nbsp;30, 2005, 90 of
whom are engaged in research and development, and the others are
engaged in administration and support functions. None of our
employees is covered by a collective bargaining agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Liability and Indemnification of Directors and Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Restated Certificate of Incorporation currently provides
that the Board of Directors has the authority to utilize, to the
fullest extent possible, the indemnification provisions of
Sections&nbsp;102(b)(7) and 145 of the Delaware General
Corporation Law, and our directors and officers are provided
with the broadest available indemnification coverage. Such
indemnification for our directors and officers is mandatory. The
Restated Certificate of Incorporation also expressly provides
that the advancement of expenses is mandatory and not subject to
the discretion of our Board of Directors, except that any of our
directors or officers who request advancement must undertake to
repay the advanced amounts if it is determined that such person
is not entitled to be indemnified by us. Further, our Restated
Certificate of Incorporation contains provisions to eliminate
the liability of our directors to us or our stockholders to the
fullest extent permitted by Section&nbsp;102(b)(7) of the
Delaware General Corporation Law, as amended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;145 of the Delaware General Corporation Law
provides that a corporation may indemnify directors and officers
as well as other employees and individuals against expenses
(including attorneys&#146; fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by such
person in connection with any threatened, pending or completed
actions, suits or proceedings in which such person is made a
party by reason of such person being or having been a director,
officer, employee or agent of the corporation. Section&nbsp;145
of the Delaware General Corporation Law also provides that
expenses (including attorneys&#146; fees) incurred by a director
or officer in defending an action may be paid by a corporation
in advance of the final disposition of an action if the director
or officer undertakes to repay the advanced amounts if it is
determined such person is not entitled to be indemnified by the
corporation. The Delaware General Corporation Law provides that
Section&nbsp;145 is not exclusive of other rights to which those
seeking indemnification may be entitled under any bylaw,
agreement, vote of stockholders or disinterested directors or
otherwise. Section&nbsp;102(b)(7) of the Delaware General
Corporation Law permits a corporation to provide in its
certificate of incorporation that a director of the corporation
shall not be personally liable to the corporation or its
stockholders for monetary damages for breach of fiduciary duty
as a director, except for liability (i)&nbsp;for any breach of
the director&#146;s duty of loyalty to the corporation or its
stockholders, (ii)&nbsp;for acts or omissions not in good faith
or which involve intentional misconduct or a knowing violation
of law, (iii)&nbsp;for unlawful payments of dividends or
unlawful stock repurchases, redemptions or other distributions,
or (iv)&nbsp;for any transaction from which the director derived
an improper personal benefit. Our Certificate of Incorporation,
as amended, provides for such limitation of liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We also maintain a policy of directors and officers liability
insurance covering certain liabilities incurred by our directors
and officers in connection with the performance of their duties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Insofar as indemnification for liabilities arising under the
Securities Act, is permitted for our directors, officers or
controlling persons, pursuant to the above mentioned statutes or
otherwise, we understand that the Securities and Exchange
Commission is of the opinion that such indemnification may
contravene federal public policy, as expressed in said Act, and
therefore, is unenforceable. Accordingly, in the event that a
claim for such indemnification is asserted by any of our
directors, officers or controlling persons, and the Commission
is still of the same opinion, we (except insofar as such claim
seeks reimbursement from us of expenses paid or incurred by a
director, officer of controlling person in successful defense of
any action, suit or proceeding) will, unless the matter has
theretofore been adjudicated by precedent deemed by our counsel
to be controlling, submit to a court of appropriate jurisdiction
the question whether or not indemnification by it is against
public policy as expressed in the Act and will be governed by
the final adjudication of such issue.
</DIV>

<P align="center" style="font-size: 10pt;">2

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At present, there is no pending litigation or proceeding
involving any of our directors, officers or employees as to
which indemnification is sought, nor are we aware of any
threatened litigation or proceeding that may result in claims
for indemnification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Corporate Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We were incorporated in Delaware on September&nbsp;23, 1983. Our
principal executive offices are located at 3450 Monte Villa
Parkway, Bothell, Washington 98021, and our telephone number
there is (425)&nbsp;908-3600. We have an internet web address at
<I>http://www.nastech.com.</I> The information available on or
through our website is not a part of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='102'></A>
</DIV>

<!-- link1 "FORWARD-LOOKING STATEMENTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FORWARD-LOOKING STATEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of the statements in this prospectus and in documents
incorporated by reference contain forward-looking statements
within the meaning of Section&nbsp;27A of the Securities Act of
1933, as amended (the &#147;Securities Act&#148;), and
Section&nbsp;21E of the Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;). These forward-looking
statements reflect our current views with respect to future
events or our financial performance, and involve certain known
and unknown risks, uncertainties and other factors, including
those identified below, which may cause our or our
industry&#146;s actual or future results, levels of activity,
performance or achievements to differ materially from those
expressed or implied by any forward-looking statements or from
historical results. We intend such forward-looking statements to
be covered by the safe harbor provisions for forward-looking
statements contained in Section&nbsp;27A of the Securities Act
and Section&nbsp;21E of the Exchange Act. Forward-looking
statements include information concerning our possible or
assumed future results of operations and statements preceded by,
followed by, or that includes the words &#147;may,&#148;
&#147;will,&#148; &#147;could,&#148; &#147;would,&#148;
&#147;should,&#148; &#147;believe,&#148; &#147;expect,&#148;
&#147;plan,&#148; &#147;anticipate,&#148; &#147;intend,&#148;
&#147;estimate,&#148; &#147;predict,&#148; &#147;potential&#148;
or similar expressions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Forward-looking statements are inherently subject to risks and
uncertainties, many of which we cannot predict with accuracy and
some of which we might not even anticipate. Although we believe
that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions at the time
made, we can give no assurance that such expectations will be
achieved. Future events and actual results, financial and
otherwise, may differ materially from the results discussed in
the forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements. We
have no duty to update or revise any forward-looking statements
after the date of this prospectus or to conform them to actual
results, new information, future events or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following factors, among others, could cause our or our
industry&#146;s future results to differ materially from
historical results or those anticipated:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to obtain additional funding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our efforts to establish and maintain collaboration partnerships
    for the development of PYY intranasal spray,
    PTH<SUB>(1-34)</SUB>, generic calcitonin-salmon intranasal
    spray, morphine gluconate intranasal spray or other programs;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the success or failure of our research and development programs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the advantages and disadvantages of pharmaceuticals delivered
    intranasally;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the need for improved and alternative drug delivery methods;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our efforts to collaborate with other pharmaceutical and
    biotechnology companies that have products under development;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to successfully complete product research and
    development, including pre-clinical and clinical studies, the
    U.S.&nbsp;Food and Drug Administration (&#147;FDA&#148;) and
    foreign equivalent approvals, current Good Manufacturing
    Practices (&#147;cGMP&#148;), and commercialization;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to obtain governmental authorizations, including
    product approvals and patent issuances;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to successfully manufacture the products of our
    research and development programs and our marketed products to
    meet cGMP and to manufacture these products at a financially
    acceptable cost;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to attract and retain our key officers and employees
    and manufacturing, sales, distribution and marketing partners;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    costs associated with any product liability claims, patent
    prosecution, patent infringement lawsuits and other lawsuits;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to develop and commercialize our products before our
    competitors;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the projected size of the drug delivery market in general and
    the market for our projects and programs specifically.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We assume no obligation to update and supplement forward-looking
statements that become untrue because of subsequent events.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These factors and the risk factors beginning on page&nbsp;19 of
our Annual Report on Form&nbsp;10-K/ A for the year ended
December&nbsp;31, 2004 are all of the important factors of which
we are currently aware that could cause actual results,
performance or achievements to differ materially from those
expressed in any of our forward-looking statements. We operate
in a continually changing business environment, and new risk
factors emerge from time to time. Other unknown or unpredictable
factors also could have material adverse effects on our future
results, performance or achievements. We cannot assure you that
projected results or events will be achieved or will occur.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='103'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>USE OF PROCEEDS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are registering the shares of Common Stock offered by this
prospectus for the account of the Selling Stockholders
identified in the section of this prospectus entitled
&#147;Selling Stockholders.&#148; All of the net proceeds from
the sale of the Common Stock will go to the Selling Stockholders
who offer and sell their shares of such Common Stock. We will
not receive any part of the proceeds from the sale of such
shares.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='104'></A>
</DIV>

<!-- link1 "SELLING STOCKHOLDERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SELLING STOCKHOLDERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Selling Stockholders are persons listed in the table below
who have acquired the Common Stock offered by this reoffer
prospectus pursuant to our 2004 Stock Incentive Plan. Each
Selling Stockholder will receive all of the net proceeds from
the sale of his or her shares of Common Stock offered by this
reoffer prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table presents certain information regarding the
ownership of, or future rights to acquire, our Common Stock by
the Selling Stockholders as of July&nbsp;20, 2005. The number of
shares of Common Stock outstanding will not change as a result
of the offering, nor will the number of shares owned or
percentage of ownership of any persons other than the Selling
Stockholders change as a result thereof. However, because the
Selling Stockholders may offer from time to time all or some of
their shares under this reoffer prospectus or in another
permitted manner, no assurances can be given as to the actual
number of shares that will be sold by the Selling Stockholders
or that will be held by the Selling Stockholders after
completion of the sales.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares to Be</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Prior to</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Registered</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Owned After</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Name and Position With Us</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Hereby(2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering(3)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Steven C. Quay,&nbsp;M.D.,&nbsp;Ph.D.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,575,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>768,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,807,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chairman of the Board, President and</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares to Be</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Prior to</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Registered</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Owned After</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Name and Position With Us</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Hereby(2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering(3)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dr. Gordon C. Brandt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>130,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122,500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President Clinical Research and</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Medical Affairs</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dr. Paul H. Johnson</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>98,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Vice President, Research and</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Development and Chief Scientific Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gregory L. Weaver</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>166,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Financial Officer and Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    David E. Wormuth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>130,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Senior Vice President, Operations</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Timothy M. Duffy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President, Marketing and Business Development</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Susan B. Bayh</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    J. Carter Beese,&nbsp;Jr.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Alexander D. Cross,&nbsp;Ph.D.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dr. Ian R. Ferrier</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Myron Z. Holubiak</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Leslie D. Michelson</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    John V. Pollock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>93,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,833</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gerald T. Stanewick</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>157,712</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Bruce R. Thaw</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>211,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>205,541</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Devin N. Wenig</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>412,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>404,683</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>TOTAL:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><B>4,279,107</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><B>941,052</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><B>3,338,055</B></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Includes shares of Common Stock acquired not pursuant to any
    employee or director benefit plan, Common Stock underlying
    options and restricted stock granted pursuant to our 2004 Stock
    Incentive Plan (both vested and unvested), Common Stock
    underlying options granted pursuant to any other employee or
    director benefit plan, and Common Stock underlying warrants to
    acquire Common Stock, including all such shares, options and
    warrants directly or indirectly held by each such Selling
    Stockholder.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Includes all common stock underlying options granted and
    outstanding as of July&nbsp;20, 2005 (both vested and unvested),
    and all restricted stock issued, pursuant to our 2004 Stock
    Incentive Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Assumes all shares registered under this prospectus will be sold.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If and when a selling stockholder sells all of his or her shares
of Common Stock registered under this reoffer prospectus, the
following selling stockholders will own more than one percent of
our Common Stock at July&nbsp;20, 2005:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="82%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ownership</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dr. Steven C. Quay</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Devin N. Wenig</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Bruce R. Thaw</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information regarding each Selling Stockholder&#146;s current
relationship with us within the past three years is set forth
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Dr.&nbsp;Steven C. Quay.</I> Dr.&nbsp;Quay has been employed
by us since August 2000 as Chairman of the Board, President and
Chief Executive Officer. In 1999, Dr.&nbsp;Quay founded and was
Chairman, President and Chief Executive Officer of Atossa
Healthcare, Inc. (&#147;Atossa&#148;), which focused on the
development of a proprietary platform of diagnostics and
treatments related to breast cancer risk assessment and
therapeutics and other healthcare products for women. We
acquired Atossa in August 2000. Dr.&nbsp;Quay serves as a member
of the Board of Directors pursuant to an agreement with the
Company set forth in his employment agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Dr.&nbsp;Gordon C. Brandt.</I> Dr.&nbsp;Brandt has been
employed by us since November 2002. In his position of Executive
Vice President Clinical Research and Medical Affairs, he
oversees the drug development process from preclinical through
clinical testing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Dr.&nbsp;Paul H. Johnson.</I> Dr.&nbsp;Johnson has been
employed by us since September 2003 as Senior Vice President,
Research and Development and Chief Scientific Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Gregory L. Weaver.</I> Mr.&nbsp;Weaver has been employed by
us since May 2002 as its Chief Financial Officer. He was
appointed Secretary in 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>David E. Wormuth.</I> Mr.&nbsp;Wormuth has been employed by
us since March 2001 as its Senior Vice President, Operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Timothy M. Duffy.</I> Mr.&nbsp;Duffy has been employed by us
since June 2004 as Vice President, Marketing and Business
Development.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Susan B. Bayh.</I> Mrs.&nbsp;Bayh was elected to our board of
directors on July&nbsp;20, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>J.&nbsp;Carter Beese,&nbsp;Jr.</I> Mr.&nbsp;Beese has been a
director of the Company since June 2003, and currently serves as
a member of the Audit, Nominating and Compensation Committees of
our board of directors.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Alexander D. Cross,&nbsp;Ph.D.</I> Dr.&nbsp;Cross was elected
to our board of directors on July&nbsp;20, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Dr.&nbsp;Ian R. Ferrier.</I> Dr.&nbsp;Ferrier has been a
director of the Company since January 1995.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Myron Z. Holubiak.</I> Mr.&nbsp;Holubiak has been a director
of the Company since June 2004, and currently serves as a member
of the Compensation Committee of the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Leslie D. Michelson.</I> Mr.&nbsp;Michelson has been a
director of the Company since June 2004, and currently serves as
a member of the Audit Committee of the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>John V. Pollock.</I> Mr.&nbsp;Pollock has been a director of
the Company since September 1993, and currently serves as a
member of the Audit, Nominating and Compensation Committees of
the Board of Directors, and is Chairman of the Audit and
Compensation Committees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Gerald T. Stanewick.</I> Mr.&nbsp;Stanewick has been a
director of the Company since June 2004. Mr.&nbsp;Stanewick
serves on the Board of Directors as the designee of
Dr.&nbsp;Steven C. Quay, our Chairman of the Board, President
and Chief Executive Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Bruce R. Thaw.</I> Mr.&nbsp;Thaw has been a director of the
Company since June 1991.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Devin N. Wenig.</I> Mr.&nbsp;Wenig served as Chairman of the
Board of Directors of the Company from June 1991 to March 1999
and currently serves as a director and as a member of the Audit,
Nominating and Compensation Committees of our Board of
Directors, and is Chairman of the Nominating Committee.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='105'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PLAN OF DISTRIBUTION</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Selling Stockholders may resell under this prospectus up to
941,052&nbsp;shares of our Common Stock that have been issued to
the Selling Stockholders. The Selling Stockholders may sell the
shares from time to time and may also decide not to sell all the
shares they are permitted to sell under this prospectus. The
Selling Stockholders will act independently of us in making
decisions with respect to the timing, manner and size of each
sale. The Selling Stockholders may effect such transactions by
selling the shares to or through broker-dealers. Subject to the
restrictions described in this prospectus, the shares of our
Common Stock being offered under this prospectus may be sold
from time to time by the Selling Stockholders in any of the
following ways:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our Common Stock may be sold through a broker or brokers, acting
    as principals or agents. Transactions through broker-dealers may
    include block trades in which brokers or dealers will attempt to
    sell our Common Stock as agent but may position and resell the
    block as principal to facilitate the transaction. Our Common
    Stock may be sold through dealers or agents or to dealers acting
    as market makers. Broker-dealers may receive compensation in the
    form of discounts, concessions, or commissions from the selling
    stockholders and/or the purchase of our Common Stock for whom
    such broker-dealers may act as agents or to whom they sell as
    principal, or both (which compensation as to a particular
    broker-dealer might be in excess of customary commissions);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our Common Stock may be sold on any national securities exchange
    or quotation service on which our Common Stock may be listed or
    quoted at the time of sale, in the over-the-counter market, or
    in transactions otherwise than on such exchanges or services or
    in the over-the-counter market;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our Common Stock may be sold in private sales directly to
    purchasers.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To the extent required, this prospectus may be amended or
supplemented from time to time to describe a specific plan of
distribution. In effecting sales, broker-dealers engaged by the
Selling Stockholders may arrange for other broker-dealers to
participate in the resales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Selling Stockholders may enter into option or other
transactions with broker-dealers, which require the delivery of
shares to the broker-dealer. The broker-dealer may then resell
or otherwise transfer such shares pursuant to this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Selling Stockholders also may loan or pledge shares to a
broker-dealer. The broker-dealer may sell the shares so loaned,
or upon a default the broker-dealer may sell the shares so
pledged, pursuant to this prospectus. Broker-dealers or agents
may receive compensation in the form of commissions, discounts
or concessions from Selling Stockholders. Broker-dealers or
agents may also receive compensation from the purchasers of
shares for whom they act as agents or to whom they sell as
principals, or both. Compensation as to a particular
broker-dealer might be in excess of customary commissions and
will be in amounts to be negotiated in connection with
transactions involving shares. Broker-dealers or agents and any
other participating broker-dealers or the Selling Stockholders
may be deemed to be &#147;underwriters&#148; within the meaning
of Section&nbsp;2(11) of the Securities Act in connection with
sales of shares. Accordingly, any such commission, discount or
concession received by them and any profit on the resale of
shares purchased by them may be deemed to be underwriting
discounts or commissions under the Securities Act. Because s
Selling Stockholders may be deemed to be
&#147;underwriters&#148; within the meaning of
Section&nbsp;2(11) of the Securities Act, the Selling
Stockholders will be subject to the prospectus delivery
requirements of the Securities Act. In addition, any shares of a
Selling Stockholder covered by this prospectus which qualify for
sale pursuant to Rule&nbsp;144 promulgated under the Securities
Act may be sold under Rule&nbsp;144 rather than pursuant to this
prospectus.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The shares may be sold by Selling Stockholders only through
registered or licensed brokers or dealers if required under
applicable state securities laws. In addition, in certain states
the shares may not be sold unless they have been registered or
qualified for sale in the applicable state or an exception from
the registration or qualification requirement is available and
is complied with.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under applicable rules and regulations under the Exchange Act,
any person engaged in the distribution of shares may not
simultaneously engage in market making activities with respect
to our Common Stock for a period of two business days prior to
the commencement of such distribution. In addition, each Selling
Stockholder will be subject to applicable provisions of the
Exchange Act and the associated rules and regulations under the
Exchange Act, including Regulation&nbsp;M, which provisions may
limit the timing of purchases and sales of shares of our Common
Stock by the Selling Stockholders. We will make copies of this
prospectus available to the Selling Stockholders and have
informed them of the need for delivery of copies of this
prospectus to purchasers at or prior to the time of any sale of
the shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will file a supplement to this prospectus, if required,
pursuant to Rule&nbsp;424(b) under the Securities Act upon being
notified by a Selling Stockholder that any material arrangement
has been entered into with a broker-dealer for the sale of
shares through a block trade, special offering, exchange
distribution or secondary distribution or a purchase by a broker
or dealer. Such supplement will disclose:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the name of each such Selling Stockholder and of the
    participating broker-dealer(s);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the number of shares involved;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the price at which such shares were sold;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the commissions paid or discounts or concessions allowed to such
    broker-dealer(s), where applicable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    that such broker-dealer(s) did not conduct any investigation to
    verify the information set out or incorporated by reference in
    this prospectus;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    other facts material to the transaction.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will bear all costs, expenses and fees in connection with the
registration of the shares. The Selling Stockholders will bear
all commissions and discounts, if any, attributable to the sales
of the shares.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='106'></A>
</DIV>

<!-- link1 "DESCRIPTION OF COMMON STOCK" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF COMMON STOCK</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Set forth below is a description of our Common Stock. The
following description of our Common Stock is a summary and is
subject to and qualified by the applicable provisions of our
restated certificate of incorporation, our amended and restated
bylaws and the relevant provisions of the laws of the State of
Delaware.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>General</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are currently authorized to issue up to
50,000,000&nbsp;shares of common stock. As of July&nbsp;20,
2005, 18,821,754&nbsp;shares of Common Stock were issued and
outstanding, 2,742,981 unissued shares of Common Stock were
reserved for future issuance under our equity compensation
plans, 471,719 unissued shares of Common Stock were reserved for
issuance upon the future exercise of options granted to
Dr.&nbsp;Steven C. Quay and Gregory L. Weaver as an inducement
to enter into their respective employment agreements with the
Company in August 2000 and May 2002, respectively and 1,473,717
unissued shares of Common Stock were reserved for issuance upon
the exercise of outstanding warrants, leaving approximately
26,489,829&nbsp;shares of Common Stock unissued and unreserved.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All shares of Common Stock to be outstanding following this
offering will be duly authorized, fully paid and non-assessable.
The holders of our Common Stock are entitled to one vote for
each share held of record on all matters submitted to a vote of
the holders of our Common Stock. Under Delaware law,
stockholders generally are not liable for our debts or
obligations. Our restated certificate of incorporation
</DIV>

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<DIV align="left" style="font-size: 10pt;">
does not authorize cumulative voting for the election of
directors. Subject to the rights of the holders of any class of
our capital stock having any preference or priority over our
Common Stock, the holders of shares of our Common Stock are
entitled to receive dividends that are declared by the board of
directors out of legally available funds. In the event of our
liquidation, dissolution or winding-up, the holders of common
stock are entitled to share ratably in our net assets remaining
after payment of liabilities, subject to prior rights of
preferred stock, if any, then outstanding. Our Common Stock has
no preemptive rights, conversion rights, redemption rights or
sinking fund provisions, and there are no dividends in arrears
or default. All shares of our Common Stock have equal
distribution, liquidation and voting rights, and have no
preferences or exchange rights. Our Common Stock currently is
trading on the Nasdaq National Market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Stockholder Rights Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On February&nbsp;22, 2000, our board of directors adopted a
stockholder rights plan and declared a dividend of one preferred
share purchase right for each outstanding share of Common Stock.
Each right entitles the holder, once the right becomes
exercisable, to purchase from us one one-thousandth of a share
of our Series&nbsp;A Junior Participating Preferred Stock, par
value $.01&nbsp;per share. We issued these rights on
March&nbsp;17, 2000 to each stockholder of record on such date,
and these rights attach to shares of Common Stock subsequently
issued. The rights will cause substantial dilution to a person
or group that attempts to acquire us on terms not approved by
our board of directors and could, therefore, have the effect of
delaying or preventing someone from taking control of us, even
if a change of control were in the best interest of our
stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of our preferred share purchase rights are generally
entitled to purchase from us one one-thousandth of a share of
Series&nbsp;A preferred stock at a price of $50.00, subject to
adjustment as provided in the Stockholder Rights Agreement.
These preferred share purchase rights will generally be
exercisable only if a person or group becomes the beneficial
owner of 15&nbsp;percent or more of our outstanding Common Stock
or announces a tender offer for 15&nbsp;percent or more of our
outstanding Common Stock. Each holder of a preferred share
purchase right, excluding an acquiring entity or any of its
affiliates, will have the right to receive, upon exercise,
shares of our Common Stock, or shares of stock of the acquiring
entity, having a market value equal to two times the purchase
price paid for one one-thousandth of a share of Series&nbsp;A
preferred stock. The preferred share purchase rights expire on
March&nbsp;17, 2010, unless we extend the expiration date or in
certain limited circumstances, we redeem or exchange such rights
prior to such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Transfer Agent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
American Stock Transfer&nbsp;&#38; Trust Company is the transfer
agent and registrar for our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='107'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LEGAL MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The validity of the securities offered by this prospectus is
being passed upon for us by Pryor Cashman Sherman&nbsp;&#38;
Flynn LLP, New York, New York.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='108'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXPERTS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our consolidated financial statements as of December&nbsp;31,
2004 and 2003, and for each of the years in the three-year
period ended December&nbsp;31, 2004, and management&#146;s
assessment of the effectiveness of internal control over
financial reporting as of December&nbsp;31, 2004 have been
incorporated by reference herein and in the registration
statement in reliance upon the reports of KPMG LLP, independent
registered public accounting firm, incorporated by reference
herein, and upon the authority of said firm as experts in
accounting and auditing.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left" style="font-size: 10pt;">
<A name='109'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We file annual, quarterly and current reports with the
Securities and Exchange Commission. You may read and copy any
documents filed by us at the Securities and Exchange
Commission&#146;s public reference room located at
450&nbsp;Fifth Street, N.W., Judiciary Plaza, Room&nbsp;1024,
Washington,&nbsp;D.C. 20549. You may obtain information on the
operation of the public reference room of the Securities and
Exchange Commission by calling the Securities and Exchange
Commission at 1-800-SEC-0330. You also can request copies of
such documents, upon payment of a duplicating fee, by writing to
the public reference room of the Securities and Exchange
Commission, 450&nbsp;Fifth Street, N.W., Judiciary Plaza,
Washington,&nbsp;D.C. 20549. The Securities and Exchange
Commission maintains a web site that contains reports, proxy and
information statements and other information regarding
registrants that file electronically with the Securities and
Exchange Commission. The address of the Securities and Exchange
Commission&#146;s web site is: <I>http://www.sec.gov.</I> In
addition, our common stock is listed on the Nasdaq National
Market under the symbol &#147;NSTK&#148;, and similar
information concerning us can be inspected and copied at the
office of Nasdaq Operations, 1735&nbsp;K&nbsp;Street, N.W.,
Washington,&nbsp;D.C. 20006. In addition, copies of our annual,
quarterly, and current reports may be obtained from our website
at <I>http://www.nastech.com.</I> The information available on
or through our website is not a part of this prospectus.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have filed with the Securities and Exchange Commission a
registration statement on Form&nbsp;S-8 (of which this
prospectus is a part) under the Securities Act, with respect to
the securities offered by this prospectus. This prospectus does
not contain all of the information set forth in the registration
statement, certain portions of which have been omitted as
permitted by the rules and regulations of the Securities and
Exchange Commission. Statements contained in this prospectus as
to the contents of any contract or other document are not
necessarily complete, and in each instance please see the copy
of such contract or other document filed as an exhibit to the
registration statement, each such statement being qualified in
all respects by such reference and the exhibits and schedules
thereto. For further information regarding us and the securities
offered by this prospectus, please refer to the registration
statement and such exhibits and schedules which may be obtained
from the Securities and Exchange Commission at its principal
office in Washington,&nbsp;D.C. upon payment of the fees
prescribed by the Securities and Exchange Commission, or from
its web site.
</DIV>

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<DIV align="center" style="font-size: 2pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>You should rely only on the information contained in or
incorporated by reference into this prospectus. We have not
authorized any person to give any information or to make any
representations other than those contained or incorporated by
reference in this prospectus, and, if given or made, you must
not rely upon such information or representations as having been
authorized. This prospectus does not constitute an offer to sell
or the solicitation of an offer to buy any securities other than
the securities described in this prospectus or an offer to sell
or the solicitation to buy such securities in any circumstances
in which such offer or solicitation is unlawful. You should not
assume that the information we have included in this prospectus
is accurate as of any date other than the date of this
prospectus or that any information we have incorporated by
reference is accurate as of any date other than the date of the
document incorporated by reference regardless of the time of
delivery of this prospectus or of any securities registered
hereunder.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>941,052&nbsp;Shares</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Nastech Pharmaceutical Company Inc.</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Common Stock</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 31%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROSPECTUS</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 31%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
July&nbsp;26, 2005
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;II</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;3.</B></TD>
    <TD>
    <B><I>Incorporation of Documents by Reference.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In this document, we &#147;incorporate by reference&#148; the
information we file with the Securities and Exchange Commission,
which means that we can disclose important information to you by
referring to that information. The information incorporated by
reference is considered to be a part of this prospectus, and
later information filed with the Securities and Exchange
Commission will update and supersede this information. We
incorporate by reference the documents listed below and any
future filings made with the Securities and Exchange Commission
under Sections&nbsp;13(a), 13(c), 14 or 15(d) of the Exchange
Act, after the date of this prospectus until the offering is
completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(1)&nbsp;Our Annual Report on Form&nbsp;10-K/ A (File
No.&nbsp;000-13789) for the fiscal year ended December&nbsp;31,
2004;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)&nbsp;Our Quarterly Report on Form&nbsp;10-Q (File
No.&nbsp;000-13789) for the fiscal quarter ended March&nbsp;31,
2005;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(3)&nbsp;Our Current Reports on Form&nbsp;8-K (File
No.&nbsp;000-13789) dated January&nbsp;21, 2005 reporting
certain events under Items&nbsp;1.01 and 9.01, dated
May&nbsp;25, 2005 reporting certain events under Items&nbsp;1.01
and 9.01, dated June&nbsp;3, 2005 reporting certain events under
Items&nbsp;1.01 and 9.01 and July&nbsp;20, 2005 reporting
certain events under Items&nbsp;1.01, 5.03, 8.01 and 9.01;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(4)&nbsp;Our Definitive Proxy Statement relating to the Annual
Meeting of Stockholders to be held on July&nbsp;20,
2005;&nbsp;and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(5)&nbsp;The description of our Common Stock and the description
of certain provisions of Delaware Law contained in:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;Our Registration Statement on Form&nbsp;8-A dated
    August&nbsp;12, 1985;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;Our Restated Certificate of Incorporation dated
    July&nbsp;20, 2005 and filed as Exhibit&nbsp;3.1 to our Current
    Report on Form&nbsp;8-K dated July&nbsp;20, 2005;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;Our Amended and Restated Bylaws dated August&nbsp;11,
    2004 and filed as Exhibit&nbsp;3.10 to our Registration
    Statement on Form&nbsp;S-3 (File No.&nbsp;333-119429);</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and any amendments or reports filed for the purpose of updating
such description.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;4.</B></TD>
    <TD>
    <B><I>Description of Securities.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;5.</B></TD>
    <TD>
    <B><I>Interests of Named Experts and Counsel.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;6.</B></TD>
    <TD>
    <B><I>Indemnification of Directors and Officers.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Restated Certificate of Incorporation currently provides
that the Board of Directors has the authority to utilize, to the
fullest extent possible, the indemnification provisions of
Sections&nbsp;102(b)(7) and 145 of the Delaware General
Corporation Law, and our directors and officers are provided
with the broadest available indemnification coverage. Such
indemnification for our directors and officers is mandatory. The
Restated Certificate of Incorporation also expressly provides
that the advancement of expenses is mandatory and not subject to
the discretion of our Board of Directors, except that any of our
directors or officers who request advancement must undertake to
repay the advanced amounts if it is determined that such person
is not entitled to be indemnified by us. Further, our Restated
Certificate of Incorporation contains provisions to eliminate
the liability of our directors to us or our stockholders to the
fullest extent permitted by Section&nbsp;102(b)(7) of the
Delaware General Corporation Law, as amended from time to time.
</DIV>

<P align="center" style="font-size: 10pt;">II-1
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;145 of the Delaware General Corporation Law
provides that a corporation may indemnify directors and officers
as well as other employees and individuals against expenses
(including attorneys&#146; fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by such
person in connection with any threatened, pending or completed
actions, suits or proceedings in which such person is made a
party by reason of such person being or having been a director,
officer, employee or agent of the corporation. Section&nbsp;145
of the Delaware General Corporation Law also provides that
expenses (including attorneys&#146; fees) incurred by a director
or officer in defending an action may be paid by a corporation
in advance of the final disposition of an action if the director
or officer undertakes to repay the advanced amounts if it is
determined such person is not entitled to be indemnified by the
corporation. The Delaware General Corporation Law provides that
Section&nbsp;145 is not exclusive of other rights to which those
seeking indemnification may be entitled under any bylaw,
agreement, vote of stockholders or disinterested directors or
otherwise. Section&nbsp;102(b)(7) of the Delaware General
Corporation Law permits a corporation to provide in its
certificate of incorporation that a director of the corporation
shall not be personally liable to the corporation or its
stockholders for monetary damages for breach of fiduciary duty
as a director, except for liability (i)&nbsp;for any breach of
the director&#146;s duty of loyalty to the corporation or its
stockholders, (ii)&nbsp;for acts or omissions not in good faith
or which involve intentional misconduct or a knowing violation
of law, (iii)&nbsp;for unlawful payments of dividends or
unlawful stock repurchases, redemptions or other distributions,
or (iv)&nbsp;for any transaction from which the director derived
an improper personal benefit. Our Certificate of Incorporation,
as amended, provides for such limitation of liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We also maintain a policy of directors and officers liability
insurance covering certain liabilities incurred by our directors
and officers in connection with the performance of their duties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Insofar as indemnification for liabilities arising under the
Securities Act, is permitted for our directors, officers or
controlling persons, pursuant to the above mentioned statutes or
otherwise, we understand that the Securities and Exchange
Commission is of the opinion that such indemnification may
contravene federal public policy, as expressed in said Act, and
therefore, is unenforceable. Accordingly, in the event that a
claim for such indemnification is asserted by any of our
directors, officers or controlling persons, and the Commission
is still of the same opinion, we (except insofar as such claim
seeks reimbursement from us of expenses paid or incurred by a
director, officer of controlling person in successful defense of
any action, suit or proceeding) will, unless the matter has
theretofore been adjudicated by precedent deemed by our counsel
to be controlling, submit to a court of appropriate jurisdiction
the question whether or not indemnification by it is against
public policy as expressed in the Act and will be governed by
the final adjudication of such issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At present, there is no pending litigation or proceeding
involving any of our directors, officers or employees as to
which indemnification is sought, nor are we aware of any
threatened litigation or proceeding that may result in claims
for indemnification.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;7.</B></TD>
    <TD>
    <B><I>Exemption from Registration Claimed.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;8.</B></TD>
    <TD>
    <B><I>Exhibits.</I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Common Stock Certificate (filed as Exhibit&nbsp;4.1 to
    our Registration Statement on Form&nbsp;S-3, File
    No.&nbsp;333-119429, and incorporated herein by reference).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Rights Agreement, dated February&nbsp;22, 2000, between the
    Company and American Stock Transfer&nbsp;&#38; Trust Company as
    Rights Agent (filed as Exhibit&nbsp;1 to our Current Report on
    Form 8-K dated February&nbsp;22, 2000 and incorporated herein by
    reference).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Securities Purchase Agreement dated as of June&nbsp;25, 2004
    (filed as Exhibit&nbsp;99.2 to our Current Report on Form 8-K
    dated June&nbsp;25, 2004 and incorporated herein by reference).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Opinion of Pryor Cashman Sherman&nbsp;&#38; Flynn LLP.(1)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Nastech Pharmaceutical Company Inc. 2004 Stock Incentive Plan
    (filed as Exhibit&nbsp;99 to our Registration Statement on
    Form&nbsp;S-8, File No.&nbsp;333-118206, and incorporated herein
    by reference).</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">II-2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment No.&nbsp;1 to Nastech Pharmaceutical Company Inc. 2004
    Stock Incentive Plan dated July&nbsp;20, 2005 (filed as
    Exhibit&nbsp;10.4 to our Current Report on Form 8-K dated
    July&nbsp;20, 2005, and incorporated herein by reference).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of KPMG LLP, independent registered public accounting
    firm.(1)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Pryor Cashman Sherman&nbsp;&#38; Flynn LLP (included
    in Exhibit&nbsp;5.1).(1)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>24</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Power of Attorney (included on the signature page).(1)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Filed herewith.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;9.</B></TD>
    <TD>
    <B><I>Undertakings</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;The undersigned registrant hereby undertakes:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;To file during any period in which offers or sales are
    being made, a post-effective amendment to this registration
    statement to include any material information with respect to
    the plan of distribution not previously disclosed in this
    registration statement or any material change to such
    information in this registration statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;That, for the purpose of determining any liability
    under the Securities Act of 1933, each such post-effective
    amendment shall be deemed to be a new registration statement
    relating to the securities offered therein, and the offering of
    such securities at that time shall be deemed to be the initial
    bona fide offering thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;To remove from registration by means of a
    post-effective amendment any of the securities being registered
    which remain unsold at the termination of the offering.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;The undersigned registrant hereby further undertakes
that, for purposes of determining any liability under the
Securities Act of 1933, each filing of the registrant&#146;s
annual report pursuant to Section&nbsp;13(a) or
Section&nbsp;15(d) of the Securities Exchange Act of 1934 (and,
where applicable, each filing of an employee benefit plan&#146;s
annual report pursuant to Section&nbsp;15(d) of the Securities
Exchange Act of 1934), that is incorporated by reference in the
registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;The undersigned registrant hereby undertakes to deliver
or cause to be delivered with the prospectus, to each person to
whom the prospectus is sent or given, the latest annual report
to security holders that is incorporated by reference in the
prospectus and furnished pursuant to and meeting the
requirements of Rule&nbsp;14a-3 or Rule&nbsp;14c-3 under the
Securities Exchange Act of 1934; and, where interim financial
information required to be presented by Article&nbsp;3 of
Regulation&nbsp;S-X are not set forth in the prospectus, to
deliver, or cause to be delivered to each person to whom the
prospectus is sent or given, the latest quarterly report that is
specifically incorporated by reference in the prospectus to
provide such interim financial information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the registrant pursuant to
the provisions described in Item&nbsp;15 above, or otherwise,
the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act of 1933
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act of 1933 and will be governed by the final
adjudication of such issue.
</DIV>

<P align="center" style="font-size: 10pt;">II-3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SIGNATURES</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on
Form&nbsp;S-8 and has duly caused this registration statement to
be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Bothell, State of Washington, on the
26<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
day of July, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    NASTECH PHARMACEUTICAL <BR>
     COMPANY INC.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    /s/ Steven C. Quay</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Steven C. Quay</TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    <I>Chairman of the Board, President and</I></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    <I>Chief Executive Officer</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned
constitutes and appoints STEVEN C. QUAY,&nbsp;M.D., PH.D., and
GREGORY L. WEAVER, and each of them, his true and lawful
attorneys-in-fact and agents, with full power of substitution
and resubstitution, for him and in his name, place and stead, in
any and all capacities, to sign this registration statement
(including all pre-effective and post-effective amendments
thereto), and to file the same, with all exhibits thereto, and
other documents in connection therewith, with the Securities and
Exchange Commission, granting unto such attorneys-in-fact and
agents, and each of them, full power and authority to do and
perform each and every act and thing requisite and necessary to
be done in and about the premises, as fully to all intents and
purposes as he might or could do in person, hereby ratifying and
confirming all that such attorneys-in-fact and agents or any of
them, or their or his substitute or substitutes, may lawfully do
or cause to be done by virtue hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act of 1933, as
amended, this registration statement has been signed by the
following persons in the capacities and on the dates indicated.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Date</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Steven C. Quay<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Steven
    C. Quay, M.D., Ph.D.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Chairman of the Board, President and Chief Executive Officer<BR>
    (Principal Executive Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Gregory L. Weaver<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Gregory
    L. Weaver</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Chief Financial Officer<BR>
    (Principal Financial and<BR>
    Accounting Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Susan B. Bayh<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Susan
    B. Bayh</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ J. Carter Beese, Jr.<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>J.
    Carter Beese, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Dr. Alexander D. Cross<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Dr.
    Alexander D. Cross</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Dr. Ian R. Ferrier<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Dr.
    Ian R. Ferrier</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Date</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Myron Z. Holubiak<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Myron
    Z. Holubiak</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Leslie D. Michelson<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Leslie
    D. Michelson</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ John V. Pollock<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>John
    V. Pollock</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Gerald T. Stanewick<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Gerald
    T. Stanewick</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Bruce R. Thaw<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Bruce
    R. Thaw</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Devin N. Wenig<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Devin
    N. Wenig</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    July&nbsp;26, 2005</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXHIBIT INDEX</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Common Stock Certificate (filed as Exhibit&nbsp;4.1 to
    our Registration Statement on Form&nbsp;S-3, File
    No.&nbsp;333-119429, and incorporated herein by reference).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Rights Agreement, dated February&nbsp;22, 2000, between the
    Company and American Stock Transfer&nbsp;&#38; Trust Company as
    Rights Agent (filed as Exhibit&nbsp;1 to our Current Report on
    Form 8-K dated February&nbsp;22, 2000 and incorporated herein by
    reference).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Securities Purchase Agreement dated as of June&nbsp;25, 2004
    (filed as Exhibit&nbsp;99.2 to our Current Report on Form 8-K
    dated June&nbsp;25, 2004 and incorporated herein by reference).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Opinion of Pryor Cashman Sherman&nbsp;&#38; Flynn LLP.(1)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Nastech Pharmaceutical Company Inc. 2004 Stock Incentive Plan
    (filed as Exhibit&nbsp;99 to our Registration Statement on
    Form&nbsp;S-8, File No.&nbsp;333-118206, and incorporated herein
    by reference).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment No.&nbsp;1 to Nastech Pharmaceutical Company Inc. 2004
    Stock Incentive Plan dated July&nbsp;20, 2005 (filed as
    Exhibit&nbsp;10.4 to our Current Report on Form 8-K dated
    July&nbsp;20, 2005, and incorporated herein by reference).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of KPMG LLP, independent registered public accounting
    firm.(1)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Pryor Cashman Sherman&nbsp;&#38; Flynn LLP (included
    in Exhibit&nbsp;5.1).(1)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>24</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Power of Attorney (included on the signature page).(1)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Filed herewith.</TD>
</TR>

</TABLE>
</BODY>
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FORM S-8
Table of Contents
As filed with the Securities and Exchange Commission on
July 26, 2005
Registration
No. 333-
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form S-8
AND POST-EFFECTIVE AMENDMENT NO. 1
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
Nastech Pharmaceutical Company Inc.
(Exact name of registrant as specified in its charter)
Delaware
2834
11-2658569
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
3450 Monte Villa Parkway
Bothell, Washington 98021
(425) 908-3600
(Address of Principal Executive Offices)
NASTECH PHARMACEUTICAL COMPANY INC.
2004 STOCK INCENTIVE PLAN
(Full Title of the Plan)
Dr. Steven C. Quay
Chairman, President and Chief Executive Officer
Nastech Pharmaceutical Company Inc.
3450 Monte Villa Parkway
Bothell, Washington 98021
(Name and Address of Agent for Service)
(425) 908-3600
(Telephone Number, Including Area Code, of Agent for
Service)
Copies to:
Blake Hornick, Esq.
Pryor Cashman Sherman & Flynn LLP
410 Park Avenue
New York, New York 10022
(212) 326-0133
CALCULATION OF REGISTRATION FEE
Title of Securities
Amount to be
Proposed Maximum Offering
Proposed Maximum
Amount of
to be Registered
Registered(1)
Price per Security(2)
Aggregate Offering Price(2)
Registration Fee(2)
Nastech Pharmaceutical Company Inc. 2004 Stock Incentive Plan
    Common Stock ($0.006 par value)
1,350,000(3)
$13.90(4)
$18,765,000(4)
$2,208.64(5)
(1)
Pursuant to Rule 416(a) under the Securities Act of 1933,
    as amended (the "Securities Act"), this Registration
    Statement shall also cover any additional shares of Nastech
    Pharmaceutical Company Inc. (the "Company") common
    stock, par value $0.006 per share (the "Common
    Stock"), which become issuable under the Nastech
    Pharmaceutical Company Inc. 2004 Stock Incentive Plan (the
    "Plan") by reason of any stock dividend, stock split,
    recapitalization or other similar transaction effected without
    the receipt of consideration which results in an increase in the
    number of the outstanding shares of common stock of Nastech
    Pharmaceutical Company Inc.
(2)
In U.S. dollars or the equivalent thereof denominated in
    one or more foreign currencies or units of two or more foreign
    currencies or composite currencies. Estimated solely for the
    purposes of calculating the registration fee and exclusive of
    accrued interest, if any.
(3)
Pursuant to Rule 429(b) under the Securities Act, the
    1,350,000 shares of Common Stock being registered hereunder
    includes 600,000 shares of Common Stock issuable pursuant
    to the Plan that were previously registered on a registration
    statement on Form S-8 (No. 333-118206) filed by the
    Company with the Securities and Exchange Commission on
    August 13, 2004. Accordingly, this registration statement
    also constitutes post-effective amendment no. 1 to such earlier
    registration statement.
(4)
Calculated in accordance with Rule 457(c) of the Securities
    Act, solely for the purpose of calculating the registration fee
    on the basis of the average of the high and low prices of our
    Common Stock as reported by The Nasdaq National Market on
    July 22, 2005.
(5)
Pursuant to General Instruction E of Form S-8, a filing fee
    of $1,227.03 is being paid solely with respect to the 750,000
    additional shares of Common Stock being registered on this
    Registration Statement, calculated in accordance with
    Rule 457(o) under the Securities Act at the statutory rate
    of $117.70 per $1,000,000 of securities registered.
Explanatory Notes
Pursuant to Rule 429(b) under the Securities Act, this
registration statement, which is a new registration statement,
also constitutes post-effective amendment no. 1 to registration
statement no. 333-118206 on Form S-8, filed with the
Securities and Exchange Commission on August 13, 2004.
Included on the immediately following pages is a "reoffer
prospectus." The reoffer prospectus is filed as part of
this registration statement on Form S-8, has been prepared
in accordance with the requirements of Part I of
Form S-3, and pursuant to Rule 429(a), is a combined
prospectus which also relates to shares of Common Stock
registered on registration statement no. 333-118206 on
Form S-8. It may be used for reoffers of Common Stock
defined as "control securities" under
Instruction C to Form S-8 acquired by
"affiliates" (as the term is defined in Rule 405
under the Securities Act) pursuant to awards of restricted
shares of Common Stock or the exercise of stock options pursuant
to the 2004 Plan.
Table of Contents
PROSPECTUS
Nastech Pharmaceutical Company Inc.
941,052 shares
of
Common Stock
This reoffer prospectus is a combined prospectus relating to
shares of our common stock, par value $0.006 per share (the
"Common Stock"), that have been registered with the
Securities and Exchange Commission on (i) the registration
statement on Form S-8 of which this reoffer prospectus is
filed as a part thereof, and (ii) the registration
statement on Form S-8 (File No. 333-118206) of which
this prospectus is a part thereof pursuant to Rule 429
under the Securities Act of 1933, as amended.
The persons listed as our selling stockholders in this
prospectus (the "Selling Stockholders") are offering
and selling up to 941,052 shares of our Common Stock issued
to the Selling Stockholders pursuant to awards under our 2004
Stock Incentive Plan, including 341,052 restricted shares of
Common Stock and 600,000 shares of Common Stock that have
been or hereafter may be acquired by such Selling Stockholders
upon the exercise of options to purchase Common Stock. All net
proceeds from the sale of the shares of Common Stock offered by
this prospectus will go to the Selling Stockholders. We will not
receive any proceeds from such sales.
The Selling Stockholders may offer their shares of Common Stock
through public or private transactions, in the over-the-counter
markets or on any exchanges on which our Common Stock is traded
at the time of sale, at prevailing market prices or at privately
negotiated prices. The Selling Stockholders may engage brokers
or dealers who may receive commissions or discounts from the
Selling Stockholders. We will pay substantially all of the
expenses incident to the registration of such shares, except for
the selling commissions.
Our shares of common stock trade on the Nasdaq National Market
under the symbol "NSTK." On July 25, 2005, the
last sale price of the shares as reported on the Nasdaq National
Market was $13.91 per share.
You should carefully read and consider the risk factors
beginning on page 19 in our Annual Report on
Form 10-K/ A for the year ended December 31, 2004 for
risks relating to investments in our securities.
Our mailing address and telephone number are:
3450 Monte Villa Parkway
Bothell, Washington 98021
(425) 908-3600
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal
offense.
The date of this prospectus is July 26, 2005
TABLE OF CONTENTS
Information About The Company
1
Forward-Looking Statements
3
Use of Proceeds
4
Selling Stockholders
4
Plan of Distribution
7
Description of Common Stock
8
Legal Matters
9
Experts
9
Where You Can Find More Information
10
EX-5.1: OPINION OF PRYOR CASHMAN SHERMAN & FLYNN LLP
EX-23.1: CONSENT OF KPMG LLP
You should rely only on the information contained in or
incorporated by reference into this prospectus. We have not
authorized any person to give any information or to make any
representations other than those contained or incorporated by
reference in this prospectus, and, if given or made, you must
not rely upon such information or representations as having been
authorized. This prospectus does not constitute an offer to sell
or the solicitation of an offer to buy any securities other than
the securities described in this prospectus or an offer to sell
or the solicitation to buy such securities in any circumstances
in which such offer or solicitation is unlawful. You should not
assume that the information we have included in this prospectus
is accurate as of any date other than the date of this
prospectus or that any information we have incorporated by
reference is accurate as of any date other than the date of the
document incorporated by reference regardless of the time of
delivery of this prospectus or of any securities registered
hereunder.
This document includes product names, trade names and trademarks
of other companies. All such product names and trademarks
appearing in this document are the property of their respective
holders.
i
Table of Contents
Unless the context otherwise requires, all references in this
prospectus to "Nastech," "Company,"
"registrant," "we," "us" or
"our" include Nastech Pharmaceutical Company Inc., a
Delaware corporation, and any subsidiaries or other entities
controlled by us. All references in this prospectus to
"common stock" refer to our common stock, par value
$0.006 per share.
INFORMATION ABOUT THE COMPANY
Overview
We are a pharmaceutical company focusing on development and
commercialization of innovative products based on proprietary
molecular biology-based intranasal drug delivery technology for
delivering both small and large molecule drugs. Using this
technology, we create or utilize novel formulation components or
excipients that can transiently manipulate or open "tight
junctions" between cells in various tissues and thereby
allow therapeutic drugs to reach the blood stream. Tight
junctions are cell-to-cell connections in various tissues of the
body, including epithelial and endothelial layers of the
intranasal mucosa, the gastrointestinal tract, and the blood
brain barrier. They function to provide barrier integrity and to
regulate the transport and passage of molecules across these
natural boundaries. This technology is the foundation of our
intranasal drug delivery platform, although some of our product
candidates utilize our expertise outside this area. Generally,
we seek to apply our technology to compounds that we license to,
or acquire from, collaborators or other third parties.
We believe our intranasal drug delivery technology offers
advantages over injectable routes for the administration of
large molecules such as peptides and proteins. These advantages
may include improved safety and clinical efficacy and increased
patient compliance due to the elimination of injection site pain
and avoidance of injection site irritation. In addition, we
believe our intranasal drug delivery technology offers
advantages over oral administration by providing for faster
absorption into the bloodstream, reduced side effects and
improved effectiveness by avoiding problems relating to
gastrointestinal and liver metabolism. We are utilizing our
technologies to develop commercial products, initially with
collaboration partners. In select cases, we also plan to
internally develop, manufacture and commercialize our products.
We and our collaboration partners are developing a diverse
portfolio of product candidates for multiple therapeutic areas
including obesity, osteoporosis and breakthrough cancer pain.
Our lead product
candidate, Peptide YY
(3-36)
for obesity, is in
Phase I clinical trials and is being developed with our
collaboration partner Merck & Co. Inc. Additionally, we
are developing two product candidates for the treatment of
osteoporosis. Parathyroid Hormone PTH
(1-34)
is in
Phase I clinical trials, and we have filed an abbreviated
new drug application for our generic calcitonin-salmon
intranasal spray which we are developing with our collaboration
partner Par Pharmaceutical Inc. As of June 30, 2005, we
have 33 patents issued and 165 patent applications filed to
protect our proprietary technologies.
For a more detailed description of our business, please see our
periodic reports on Forms 10-K, 10-Q and 8-K that we file
with the Securities and Exchange Commission.
1
Table of Contents
Employees
We had 114 full-time employees at June 30, 2005, 90 of
whom are engaged in research and development, and the others are
engaged in administration and support functions. None of our
employees is covered by a collective bargaining agreement.
Liability and Indemnification of Directors and Officers
Our Restated Certificate of Incorporation currently provides
that the Board of Directors has the authority to utilize, to the
fullest extent possible, the indemnification provisions of
Sections 102(b)(7) and 145 of the Delaware General
Corporation Law, and our directors and officers are provided
with the broadest available indemnification coverage. Such
indemnification for our directors and officers is mandatory. The
Restated Certificate of Incorporation also expressly provides
that the advancement of expenses is mandatory and not subject to
the discretion of our Board of Directors, except that any of our
directors or officers who request advancement must undertake to
repay the advanced amounts if it is determined that such person
is not entitled to be indemnified by us. Further, our Restated
Certificate of Incorporation contains provisions to eliminate
the liability of our directors to us or our stockholders to the
fullest extent permitted by Section 102(b)(7) of the
Delaware General Corporation Law, as amended from time to time.
Section 145 of the Delaware General Corporation Law
provides that a corporation may indemnify directors and officers
as well as other employees and individuals against expenses
(including attorneys' fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by such
person in connection with any threatened, pending or completed
actions, suits or proceedings in which such person is made a
party by reason of such person being or having been a director,
officer, employee or agent of the corporation. Section 145
of the Delaware General Corporation Law also provides that
expenses (including attorneys' fees) incurred by a director
or officer in defending an action may be paid by a corporation
in advance of the final disposition of an action if the director
or officer undertakes to repay the advanced amounts if it is
determined such person is not entitled to be indemnified by the
corporation. The Delaware General Corporation Law provides that
Section 145 is not exclusive of other rights to which those
seeking indemnification may be entitled under any bylaw,
agreement, vote of stockholders or disinterested directors or
otherwise. Section 102(b)(7) of the Delaware General
Corporation Law permits a corporation to provide in its
certificate of incorporation that a director of the corporation
shall not be personally liable to the corporation or its
stockholders for monetary damages for breach of fiduciary duty
as a director, except for liability (i) for any breach of
the director's duty of loyalty to the corporation or its
stockholders, (ii) for acts or omissions not in good faith
or which involve intentional misconduct or a knowing violation
of law, (iii) for unlawful payments of dividends or
unlawful stock repurchases, redemptions or other distributions,
or (iv) for any transaction from which the director derived
an improper personal benefit. Our Certificate of Incorporation,
as amended, provides for such limitation of liability.
We also maintain a policy of directors and officers liability
insurance covering certain liabilities incurred by our directors
and officers in connection with the performance of their duties.
Insofar as indemnification for liabilities arising under the
Securities Act, is permitted for our directors, officers or
controlling persons, pursuant to the above mentioned statutes or
otherwise, we understand that the Securities and Exchange
Commission is of the opinion that such indemnification may
contravene federal public policy, as expressed in said Act, and
therefore, is unenforceable. Accordingly, in the event that a
claim for such indemnification is asserted by any of our
directors, officers or controlling persons, and the Commission
is still of the same opinion, we (except insofar as such claim
seeks reimbursement from us of expenses paid or incurred by a
director, officer of controlling person in successful defense of
any action, suit or proceeding) will, unless the matter has
theretofore been adjudicated by precedent deemed by our counsel
to be controlling, submit to a court of appropriate jurisdiction
the question whether or not indemnification by it is against
public policy as expressed in the Act and will be governed by
the final adjudication of such issue.
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Table of Contents
At present, there is no pending litigation or proceeding
involving any of our directors, officers or employees as to
which indemnification is sought, nor are we aware of any
threatened litigation or proceeding that may result in claims
for indemnification.
Corporate Information
We were incorporated in Delaware on September 23, 1983. Our
principal executive offices are located at 3450 Monte Villa
Parkway, Bothell, Washington 98021, and our telephone number
there is (425) 908-3600. We have an internet web address at
http://www.nastech.com.
The information available on or
through our website is not a part of this prospectus.
FORWARD-LOOKING STATEMENTS
Some of the statements in this prospectus and in documents
incorporated by reference contain forward-looking statements
within the meaning of Section 27A of the Securities Act of
1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). These forward-looking
statements reflect our current views with respect to future
events or our financial performance, and involve certain known
and unknown risks, uncertainties and other factors, including
those identified below, which may cause our or our
industry's actual or future results, levels of activity,
performance or achievements to differ materially from those
expressed or implied by any forward-looking statements or from
historical results. We intend such forward-looking statements to
be covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act
and Section 21E of the Exchange Act. Forward-looking
statements include information concerning our possible or
assumed future results of operations and statements preceded by,
followed by, or that includes the words "may,"
"will," "could," "would,"
"should," "believe," "expect,"
"plan," "anticipate," "intend,"
"estimate," "predict," "potential"
or similar expressions.
Forward-looking statements are inherently subject to risks and
uncertainties, many of which we cannot predict with accuracy and
some of which we might not even anticipate. Although we believe
that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions at the time
made, we can give no assurance that such expectations will be
achieved. Future events and actual results, financial and
otherwise, may differ materially from the results discussed in
the forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements. We
have no duty to update or revise any forward-looking statements
after the date of this prospectus or to conform them to actual
results, new information, future events or otherwise.
The following factors, among others, could cause our or our
industry's future results to differ materially from
historical results or those anticipated:
•
our ability to obtain additional funding;
•
our efforts to establish and maintain collaboration partnerships
    for the development of PYY intranasal spray,
    PTH
(1-34)
, generic calcitonin-salmon intranasal
    spray, morphine gluconate intranasal spray or other programs;
•
the success or failure of our research and development programs;
•
the advantages and disadvantages of pharmaceuticals delivered
    intranasally;
•
the need for improved and alternative drug delivery methods;
•
our efforts to collaborate with other pharmaceutical and
    biotechnology companies that have products under development;
•
our ability to successfully complete product research and
    development, including pre-clinical and clinical studies, the
    U.S. Food and Drug Administration ("FDA") and
    foreign equivalent approvals, current Good Manufacturing
    Practices ("cGMP"), and commercialization;
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Table of Contents
•
our ability to obtain governmental authorizations, including
    product approvals and patent issuances;
•
our ability to successfully manufacture the products of our
    research and development programs and our marketed products to
    meet cGMP and to manufacture these products at a financially
    acceptable cost;
•
our ability to attract and retain our key officers and employees
    and manufacturing, sales, distribution and marketing partners;
•
costs associated with any product liability claims, patent
    prosecution, patent infringement lawsuits and other lawsuits;
•
our ability to develop and commercialize our products before our
    competitors; and
•
the projected size of the drug delivery market in general and
    the market for our projects and programs specifically.
We assume no obligation to update and supplement forward-looking
statements that become untrue because of subsequent events.
These factors and the risk factors beginning on page 19 of
our Annual Report on Form 10-K/ A for the year ended
December 31, 2004 are all of the important factors of which
we are currently aware that could cause actual results,
performance or achievements to differ materially from those
expressed in any of our forward-looking statements. We operate
in a continually changing business environment, and new risk
factors emerge from time to time. Other unknown or unpredictable
factors also could have material adverse effects on our future
results, performance or achievements. We cannot assure you that
projected results or events will be achieved or will occur.
USE OF PROCEEDS
We are registering the shares of Common Stock offered by this
prospectus for the account of the Selling Stockholders
identified in the section of this prospectus entitled
"Selling Stockholders." All of the net proceeds from
the sale of the Common Stock will go to the Selling Stockholders
who offer and sell their shares of such Common Stock. We will
not receive any part of the proceeds from the sale of such
shares.
SELLING STOCKHOLDERS
The Selling Stockholders are persons listed in the table below
who have acquired the Common Stock offered by this reoffer
prospectus pursuant to our 2004 Stock Incentive Plan. Each
Selling Stockholder will receive all of the net proceeds from
the sale of his or her shares of Common Stock offered by this
reoffer prospectus.
The following table presents certain information regarding the
ownership of, or future rights to acquire, our Common Stock by
the Selling Stockholders as of July 20, 2005. The number of
shares of Common Stock outstanding will not change as a result
of the offering, nor will the number of shares owned or
percentage of ownership of any persons other than the Selling
Stockholders change as a result thereof. However, because the
Selling Stockholders may offer from time to time all or some of
their shares under this reoffer prospectus or in another
permitted manner, no assurances can be given as to the actual
number of shares that will be sold by the Selling Stockholders
or that will be held by the Selling Stockholders after
completion of the sales.
Number of
Number
Number of
Shares Owned
of Shares
Shares to Be
Prior to
Registered
Owned After
Name and Position With Us
Offering(1)
Hereby(2)
Offering(3)
Steven C. Quay, M.D., Ph.D.
2,575,786
768,000
1,807,786
Chairman of the Board, President and
Chief Executive Officer
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Table of Contents
Number of
Number
Number of
Shares Owned
of Shares
Shares to Be
Prior to
Registered
Owned After
Name and Position With Us
Offering(1)
Hereby(2)
Offering(3)
Dr. Gordon C. Brandt
130,000
7,500
122,500
Executive Vice President Clinical Research and
Medical Affairs
Dr. Paul H. Johnson
98,000
4,000
94,000
Senior Vice President, Research and
Development and Chief Scientific Officer
Gregory L. Weaver
181,000
15,000
166,000
Chief Financial Officer and Secretary
David E. Wormuth
137,500
7,500
130,000
Senior Vice President, Operations
Timothy M. Duffy
31,052
16,052
15,000
Vice President, Marketing and Business Development
Susan B. Bayh
30,000
15,000
15,000
Director
J. Carter Beese, Jr.
61,000
7,500
53,500
Director
Alexander D. Cross, Ph.D.
34,000
16,500
17,500
Director
Dr. Ian R. Ferrier
22,000
6,000
16,000
Director
Myron Z. Holubiak
36,000
18,000
18,000
Director
Leslie D. Michelson
50,000
21,000
29,000
Director
John V. Pollock
93,333
7,500
85,833
Director
Gerald T. Stanewick
175,712
18,000
157,712
Director
Bruce R. Thaw
211,541
6,000
205,541
Director
Devin N. Wenig
412,183
7,500
404,683
Director
TOTAL:
4,279,107
941,052
3,338,055
(1)
Includes shares of Common Stock acquired not pursuant to any
    employee or director benefit plan, Common Stock underlying
    options and restricted stock granted pursuant to our 2004 Stock
    Incentive Plan (both vested and unvested), Common Stock
    underlying options granted pursuant to any other employee or
    director benefit plan, and Common Stock underlying warrants to
    acquire Common Stock, including all such shares, options and
    warrants directly or indirectly held by each such Selling
    Stockholder.
(2)
Includes all common stock underlying options granted and
    outstanding as of July 20, 2005 (both vested and unvested),
    and all restricted stock issued, pursuant to our 2004 Stock
    Incentive Plan.
(3)
Assumes all shares registered under this prospectus will be sold.
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Table of Contents
If and when a selling stockholder sells all of his or her shares
of Common Stock registered under this reoffer prospectus, the
following selling stockholders will own more than one percent of
our Common Stock at July 20, 2005:
Percentage
Name
Ownership
Dr. Steven C. Quay
12.5
%
Devin N. Wenig
2.2
%
Bruce R. Thaw
1.2
%
Information regarding each Selling Stockholder's current
relationship with us within the past three years is set forth
below.
Dr. Steven C. Quay.
Dr. Quay has been employed
by us since August 2000 as Chairman of the Board, President and
Chief Executive Officer. In 1999, Dr. Quay founded and was
Chairman, President and Chief Executive Officer of Atossa
Healthcare, Inc. ("Atossa"), which focused on the
development of a proprietary platform of diagnostics and
treatments related to breast cancer risk assessment and
therapeutics and other healthcare products for women. We
acquired Atossa in August 2000. Dr. Quay serves as a member
of the Board of Directors pursuant to an agreement with the
Company set forth in his employment agreement.
Dr. Gordon C. Brandt.
Dr. Brandt has been
employed by us since November 2002. In his position of Executive
Vice President Clinical Research and Medical Affairs, he
oversees the drug development process from preclinical through
clinical testing.
Dr. Paul H. Johnson.
Dr. Johnson has been
employed by us since September 2003 as Senior Vice President,
Research and Development and Chief Scientific Officer.
Gregory L. Weaver.
Mr. Weaver has been employed by
us since May 2002 as its Chief Financial Officer. He was
appointed Secretary in 2003.
David E. Wormuth.
Mr. Wormuth has been employed by
us since March 2001 as its Senior Vice President, Operations.
Timothy M. Duffy.
Mr. Duffy has been employed by us
since June 2004 as Vice President, Marketing and Business
Development.
Susan B. Bayh.
Mrs. Bayh was elected to our board of
directors on July 20, 2005.
J. Carter Beese, Jr.
Mr. Beese has been a
director of the Company since June 2003, and currently serves as
a member of the Audit, Nominating and Compensation Committees of
our board of directors.
Alexander D. Cross, Ph.D.
Dr. Cross was elected
to our board of directors on July 20, 2005.
Dr. Ian R. Ferrier.
Dr. Ferrier has been a
director of the Company since January 1995.
Myron Z. Holubiak.
Mr. Holubiak has been a director
of the Company since June 2004, and currently serves as a member
of the Compensation Committee of the Board of Directors.
Leslie D. Michelson.
Mr. Michelson has been a
director of the Company since June 2004, and currently serves as
a member of the Audit Committee of the Board of Directors.
John V. Pollock.
Mr. Pollock has been a director of
the Company since September 1993, and currently serves as a
member of the Audit, Nominating and Compensation Committees of
the Board of Directors, and is Chairman of the Audit and
Compensation Committees.
Gerald T. Stanewick.
Mr. Stanewick has been a
director of the Company since June 2004. Mr. Stanewick
serves on the Board of Directors as the designee of
Dr. Steven C. Quay, our Chairman of the Board, President
and Chief Executive Officer.
Bruce R. Thaw.
Mr. Thaw has been a director of the
Company since June 1991.
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Table of Contents
Devin N. Wenig.
Mr. Wenig served as Chairman of the
Board of Directors of the Company from June 1991 to March 1999
and currently serves as a director and as a member of the Audit,
Nominating and Compensation Committees of our Board of
Directors, and is Chairman of the Nominating Committee.
PLAN OF DISTRIBUTION
The Selling Stockholders may resell under this prospectus up to
941,052 shares of our Common Stock that have been issued to
the Selling Stockholders. The Selling Stockholders may sell the
shares from time to time and may also decide not to sell all the
shares they are permitted to sell under this prospectus. The
Selling Stockholders will act independently of us in making
decisions with respect to the timing, manner and size of each
sale. The Selling Stockholders may effect such transactions by
selling the shares to or through broker-dealers. Subject to the
restrictions described in this prospectus, the shares of our
Common Stock being offered under this prospectus may be sold
from time to time by the Selling Stockholders in any of the
following ways:
•
our Common Stock may be sold through a broker or brokers, acting
    as principals or agents. Transactions through broker-dealers may
    include block trades in which brokers or dealers will attempt to
    sell our Common Stock as agent but may position and resell the
    block as principal to facilitate the transaction. Our Common
    Stock may be sold through dealers or agents or to dealers acting
    as market makers. Broker-dealers may receive compensation in the
    form of discounts, concessions, or commissions from the selling
    stockholders and/or the purchase of our Common Stock for whom
    such broker-dealers may act as agents or to whom they sell as
    principal, or both (which compensation as to a particular
    broker-dealer might be in excess of customary commissions);
•
our Common Stock may be sold on any national securities exchange
    or quotation service on which our Common Stock may be listed or
    quoted at the time of sale, in the over-the-counter market, or
    in transactions otherwise than on such exchanges or services or
    in the over-the-counter market; or
•
our Common Stock may be sold in private sales directly to
    purchasers.
To the extent required, this prospectus may be amended or
supplemented from time to time to describe a specific plan of
distribution. In effecting sales, broker-dealers engaged by the
Selling Stockholders may arrange for other broker-dealers to
participate in the resales.
The Selling Stockholders may enter into option or other
transactions with broker-dealers, which require the delivery of
shares to the broker-dealer. The broker-dealer may then resell
or otherwise transfer such shares pursuant to this prospectus.
The Selling Stockholders also may loan or pledge shares to a
broker-dealer. The broker-dealer may sell the shares so loaned,
or upon a default the broker-dealer may sell the shares so
pledged, pursuant to this prospectus. Broker-dealers or agents
may receive compensation in the form of commissions, discounts
or concessions from Selling Stockholders. Broker-dealers or
agents may also receive compensation from the purchasers of
shares for whom they act as agents or to whom they sell as
principals, or both. Compensation as to a particular
broker-dealer might be in excess of customary commissions and
will be in amounts to be negotiated in connection with
transactions involving shares. Broker-dealers or agents and any
other participating broker-dealers or the Selling Stockholders
may be deemed to be "underwriters" within the meaning
of Section 2(11) of the Securities Act in connection with
sales of shares. Accordingly, any such commission, discount or
concession received by them and any profit on the resale of
shares purchased by them may be deemed to be underwriting
discounts or commissions under the Securities Act. Because s
Selling Stockholders may be deemed to be
"underwriters" within the meaning of
Section 2(11) of the Securities Act, the Selling
Stockholders will be subject to the prospectus delivery
requirements of the Securities Act. In addition, any shares of a
Selling Stockholder covered by this prospectus which qualify for
sale pursuant to Rule 144 promulgated under the Securities
Act may be sold under Rule 144 rather than pursuant to this
prospectus.
7
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The shares may be sold by Selling Stockholders only through
registered or licensed brokers or dealers if required under
applicable state securities laws. In addition, in certain states
the shares may not be sold unless they have been registered or
qualified for sale in the applicable state or an exception from
the registration or qualification requirement is available and
is complied with.
Under applicable rules and regulations under the Exchange Act,
any person engaged in the distribution of shares may not
simultaneously engage in market making activities with respect
to our Common Stock for a period of two business days prior to
the commencement of such distribution. In addition, each Selling
Stockholder will be subject to applicable provisions of the
Exchange Act and the associated rules and regulations under the
Exchange Act, including Regulation M, which provisions may
limit the timing of purchases and sales of shares of our Common
Stock by the Selling Stockholders. We will make copies of this
prospectus available to the Selling Stockholders and have
informed them of the need for delivery of copies of this
prospectus to purchasers at or prior to the time of any sale of
the shares.
We will file a supplement to this prospectus, if required,
pursuant to Rule 424(b) under the Securities Act upon being
notified by a Selling Stockholder that any material arrangement
has been entered into with a broker-dealer for the sale of
shares through a block trade, special offering, exchange
distribution or secondary distribution or a purchase by a broker
or dealer. Such supplement will disclose:
•
the name of each such Selling Stockholder and of the
    participating broker-dealer(s);
•
the number of shares involved;
•
the price at which such shares were sold;
•
the commissions paid or discounts or concessions allowed to such
    broker-dealer(s), where applicable;
•
that such broker-dealer(s) did not conduct any investigation to
    verify the information set out or incorporated by reference in
    this prospectus; and
•
other facts material to the transaction.
We will bear all costs, expenses and fees in connection with the
registration of the shares. The Selling Stockholders will bear
all commissions and discounts, if any, attributable to the sales
of the shares.
DESCRIPTION OF COMMON STOCK
Set forth below is a description of our Common Stock. The
following description of our Common Stock is a summary and is
subject to and qualified by the applicable provisions of our
restated certificate of incorporation, our amended and restated
bylaws and the relevant provisions of the laws of the State of
Delaware.
General
We are currently authorized to issue up to
50,000,000 shares of common stock. As of July 20,
2005, 18,821,754 shares of Common Stock were issued and
outstanding, 2,742,981 unissued shares of Common Stock were
reserved for future issuance under our equity compensation
plans, 471,719 unissued shares of Common Stock were reserved for
issuance upon the future exercise of options granted to
Dr. Steven C. Quay and Gregory L. Weaver as an inducement
to enter into their respective employment agreements with the
Company in August 2000 and May 2002, respectively and 1,473,717
unissued shares of Common Stock were reserved for issuance upon
the exercise of outstanding warrants, leaving approximately
26,489,829 shares of Common Stock unissued and unreserved.
All shares of Common Stock to be outstanding following this
offering will be duly authorized, fully paid and non-assessable.
The holders of our Common Stock are entitled to one vote for
each share held of record on all matters submitted to a vote of
the holders of our Common Stock. Under Delaware law,
stockholders generally are not liable for our debts or
obligations. Our restated certificate of incorporation
8
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does not authorize cumulative voting for the election of
directors. Subject to the rights of the holders of any class of
our capital stock having any preference or priority over our
Common Stock, the holders of shares of our Common Stock are
entitled to receive dividends that are declared by the board of
directors out of legally available funds. In the event of our
liquidation, dissolution or winding-up, the holders of common
stock are entitled to share ratably in our net assets remaining
after payment of liabilities, subject to prior rights of
preferred stock, if any, then outstanding. Our Common Stock has
no preemptive rights, conversion rights, redemption rights or
sinking fund provisions, and there are no dividends in arrears
or default. All shares of our Common Stock have equal
distribution, liquidation and voting rights, and have no
preferences or exchange rights. Our Common Stock currently is
trading on the Nasdaq National Market.
Stockholder Rights Plan
On February 22, 2000, our board of directors adopted a
stockholder rights plan and declared a dividend of one preferred
share purchase right for each outstanding share of Common Stock.
Each right entitles the holder, once the right becomes
exercisable, to purchase from us one one-thousandth of a share
of our Series A Junior Participating Preferred Stock, par
value $.01 per share. We issued these rights on
March 17, 2000 to each stockholder of record on such date,
and these rights attach to shares of Common Stock subsequently
issued. The rights will cause substantial dilution to a person
or group that attempts to acquire us on terms not approved by
our board of directors and could, therefore, have the effect of
delaying or preventing someone from taking control of us, even
if a change of control were in the best interest of our
stockholders.
Holders of our preferred share purchase rights are generally
entitled to purchase from us one one-thousandth of a share of
Series A preferred stock at a price of $50.00, subject to
adjustment as provided in the Stockholder Rights Agreement.
These preferred share purchase rights will generally be
exercisable only if a person or group becomes the beneficial
owner of 15 percent or more of our outstanding Common Stock
or announces a tender offer for 15 percent or more of our
outstanding Common Stock. Each holder of a preferred share
purchase right, excluding an acquiring entity or any of its
affiliates, will have the right to receive, upon exercise,
shares of our Common Stock, or shares of stock of the acquiring
entity, having a market value equal to two times the purchase
price paid for one one-thousandth of a share of Series A
preferred stock. The preferred share purchase rights expire on
March 17, 2010, unless we extend the expiration date or in
certain limited circumstances, we redeem or exchange such rights
prior to such date.
Transfer Agent
American Stock Transfer & Trust Company is the transfer
agent and registrar for our common stock.
LEGAL MATTERS
The validity of the securities offered by this prospectus is
being passed upon for us by Pryor Cashman Sherman &
Flynn LLP, New York, New York.
EXPERTS
Our consolidated financial statements as of December 31,
2004 and 2003, and for each of the years in the three-year
period ended December 31, 2004, and management's
assessment of the effectiveness of internal control over
financial reporting as of December 31, 2004 have been
incorporated by reference herein and in the registration
statement in reliance upon the reports of KPMG LLP, independent
registered public accounting firm, incorporated by reference
herein, and upon the authority of said firm as experts in
accounting and auditing.
9
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WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports with the
Securities and Exchange Commission. You may read and copy any
documents filed by us at the Securities and Exchange
Commission's public reference room located at
450 Fifth Street, N.W., Judiciary Plaza, Room 1024,
Washington, D.C. 20549. You may obtain information on the
operation of the public reference room of the Securities and
Exchange Commission by calling the Securities and Exchange
Commission at 1-800-SEC-0330. You also can request copies of
such documents, upon payment of a duplicating fee, by writing to
the public reference room of the Securities and Exchange
Commission, 450 Fifth Street, N.W., Judiciary Plaza,
Washington, D.C. 20549. The Securities and Exchange
Commission maintains a web site that contains reports, proxy and
information statements and other information regarding
registrants that file electronically with the Securities and
Exchange Commission. The address of the Securities and Exchange
Commission's web site is:
http://www.sec.gov.
In
addition, our common stock is listed on the Nasdaq National
Market under the symbol "NSTK", and similar
information concerning us can be inspected and copied at the
office of Nasdaq Operations, 1735 K Street, N.W.,
Washington, D.C. 20006. In addition, copies of our annual,
quarterly, and current reports may be obtained from our website
at
http://www.nastech.com.
The information available on
or through our website is not a part of this prospectus.
We have filed with the Securities and Exchange Commission a
registration statement on Form S-8 (of which this
prospectus is a part) under the Securities Act, with respect to
the securities offered by this prospectus. This prospectus does
not contain all of the information set forth in the registration
statement, certain portions of which have been omitted as
permitted by the rules and regulations of the Securities and
Exchange Commission. Statements contained in this prospectus as
to the contents of any contract or other document are not
necessarily complete, and in each instance please see the copy
of such contract or other document filed as an exhibit to the
registration statement, each such statement being qualified in
all respects by such reference and the exhibits and schedules
thereto. For further information regarding us and the securities
offered by this prospectus, please refer to the registration
statement and such exhibits and schedules which may be obtained
from the Securities and Exchange Commission at its principal
office in Washington, D.C. upon payment of the fees
prescribed by the Securities and Exchange Commission, or from
its web site.
10
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You should rely only on the information contained in or
incorporated by reference into this prospectus. We have not
authorized any person to give any information or to make any
representations other than those contained or incorporated by
reference in this prospectus, and, if given or made, you must
not rely upon such information or representations as having been
authorized. This prospectus does not constitute an offer to sell
or the solicitation of an offer to buy any securities other than
the securities described in this prospectus or an offer to sell
or the solicitation to buy such securities in any circumstances
in which such offer or solicitation is unlawful. You should not
assume that the information we have included in this prospectus
is accurate as of any date other than the date of this
prospectus or that any information we have incorporated by
reference is accurate as of any date other than the date of the
document incorporated by reference regardless of the time of
delivery of this prospectus or of any securities registered
hereunder.
941,052 Shares
Nastech Pharmaceutical Company Inc.
Common Stock
PROSPECTUS
July 26, 2005
Table of Contents
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3.
Incorporation of Documents by Reference.
In this document, we "incorporate by reference" the
information we file with the Securities and Exchange Commission,
which means that we can disclose important information to you by
referring to that information. The information incorporated by
reference is considered to be a part of this prospectus, and
later information filed with the Securities and Exchange
Commission will update and supersede this information. We
incorporate by reference the documents listed below and any
future filings made with the Securities and Exchange Commission
under Sections 13(a), 13(c), 14 or 15(d) of the Exchange
Act, after the date of this prospectus until the offering is
completed.
(1) Our Annual Report on Form 10-K/ A (File
No. 000-13789) for the fiscal year ended December 31,
2004;
(2) Our Quarterly Report on Form 10-Q (File
No. 000-13789) for the fiscal quarter ended March 31,
2005;
(3) Our Current Reports on Form 8-K (File
No. 000-13789) dated January 21, 2005 reporting
certain events under Items 1.01 and 9.01, dated
May 25, 2005 reporting certain events under Items 1.01
and 9.01, dated June 3, 2005 reporting certain events under
Items 1.01 and 9.01 and July 20, 2005 reporting
certain events under Items 1.01, 5.03, 8.01 and 9.01;
(4) Our Definitive Proxy Statement relating to the Annual
Meeting of Stockholders to be held on July 20,
2005; and
(5) The description of our Common Stock and the description
of certain provisions of Delaware Law contained in:
(i) Our Registration Statement on Form 8-A dated
    August 12, 1985;
(ii) Our Restated Certificate of Incorporation dated
    July 20, 2005 and filed as Exhibit 3.1 to our Current
    Report on Form 8-K dated July 20, 2005;
(iii) Our Amended and Restated Bylaws dated August 11,
    2004 and filed as Exhibit 3.10 to our Registration
    Statement on Form S-3 (File No. 333-119429);
and any amendments or reports filed for the purpose of updating
such description.
Item 4.
Description of Securities.
Not applicable.
Item 5.
Interests of Named Experts and Counsel.
Not applicable.
Item 6.
Indemnification of Directors and Officers.
Our Restated Certificate of Incorporation currently provides
that the Board of Directors has the authority to utilize, to the
fullest extent possible, the indemnification provisions of
Sections 102(b)(7) and 145 of the Delaware General
Corporation Law, and our directors and officers are provided
with the broadest available indemnification coverage. Such
indemnification for our directors and officers is mandatory. The
Restated Certificate of Incorporation also expressly provides
that the advancement of expenses is mandatory and not subject to
the discretion of our Board of Directors, except that any of our
directors or officers who request advancement must undertake to
repay the advanced amounts if it is determined that such person
is not entitled to be indemnified by us. Further, our Restated
Certificate of Incorporation contains provisions to eliminate
the liability of our directors to us or our stockholders to the
fullest extent permitted by Section 102(b)(7) of the
Delaware General Corporation Law, as amended from time to time.
II-1
Table of Contents
Section 145 of the Delaware General Corporation Law
provides that a corporation may indemnify directors and officers
as well as other employees and individuals against expenses
(including attorneys' fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by such
person in connection with any threatened, pending or completed
actions, suits or proceedings in which such person is made a
party by reason of such person being or having been a director,
officer, employee or agent of the corporation. Section 145
of the Delaware General Corporation Law also provides that
expenses (including attorneys' fees) incurred by a director
or officer in defending an action may be paid by a corporation
in advance of the final disposition of an action if the director
or officer undertakes to repay the advanced amounts if it is
determined such person is not entitled to be indemnified by the
corporation. The Delaware General Corporation Law provides that
Section 145 is not exclusive of other rights to which those
seeking indemnification may be entitled under any bylaw,
agreement, vote of stockholders or disinterested directors or
otherwise. Section 102(b)(7) of the Delaware General
Corporation Law permits a corporation to provide in its
certificate of incorporation that a director of the corporation
shall not be personally liable to the corporation or its
stockholders for monetary damages for breach of fiduciary duty
as a director, except for liability (i) for any breach of
the director's duty of loyalty to the corporation or its
stockholders, (ii) for acts or omissions not in good faith
or which involve intentional misconduct or a knowing violation
of law, (iii) for unlawful payments of dividends or
unlawful stock repurchases, redemptions or other distributions,
or (iv) for any transaction from which the director derived
an improper personal benefit. Our Certificate of Incorporation,
as amended, provides for such limitation of liability.
We also maintain a policy of directors and officers liability
insurance covering certain liabilities incurred by our directors
and officers in connection with the performance of their duties.
Insofar as indemnification for liabilities arising under the
Securities Act, is permitted for our directors, officers or
controlling persons, pursuant to the above mentioned statutes or
otherwise, we understand that the Securities and Exchange
Commission is of the opinion that such indemnification may
contravene federal public policy, as expressed in said Act, and
therefore, is unenforceable. Accordingly, in the event that a
claim for such indemnification is asserted by any of our
directors, officers or controlling persons, and the Commission
is still of the same opinion, we (except insofar as such claim
seeks reimbursement from us of expenses paid or incurred by a
director, officer of controlling person in successful defense of
any action, suit or proceeding) will, unless the matter has
theretofore been adjudicated by precedent deemed by our counsel
to be controlling, submit to a court of appropriate jurisdiction
the question whether or not indemnification by it is against
public policy as expressed in the Act and will be governed by
the final adjudication of such issue.
At present, there is no pending litigation or proceeding
involving any of our directors, officers or employees as to
which indemnification is sought, nor are we aware of any
threatened litigation or proceeding that may result in claims
for indemnification.
Item 7.
Exemption from Registration Claimed.
Not applicable.
Item 8.
Exhibits.
Exhibit
No.
Description
4
.1
Form of Common Stock Certificate (filed as Exhibit 4.1 to
    our Registration Statement on Form S-3, File
    No. 333-119429, and incorporated herein by reference).
4
.5
Rights Agreement, dated February 22, 2000, between the
    Company and American Stock Transfer & Trust Company as
    Rights Agent (filed as Exhibit 1 to our Current Report on
    Form 8-K dated February 22, 2000 and incorporated herein by
    reference).
4
.6
Securities Purchase Agreement dated as of June 25, 2004
    (filed as Exhibit 99.2 to our Current Report on Form 8-K
    dated June 25, 2004 and incorporated herein by reference).
5
.1
Opinion of Pryor Cashman Sherman & Flynn LLP.(1)
10
.1
Nastech Pharmaceutical Company Inc. 2004 Stock Incentive Plan
    (filed as Exhibit 99 to our Registration Statement on
    Form S-8, File No. 333-118206, and incorporated herein
    by reference).
II-2
Table of Contents
Exhibit
No.
Description
10
.2
Amendment No. 1 to Nastech Pharmaceutical Company Inc. 2004
    Stock Incentive Plan dated July 20, 2005 (filed as
    Exhibit 10.4 to our Current Report on Form 8-K dated
    July 20, 2005, and incorporated herein by reference).
23
.1
Consent of KPMG LLP, independent registered public accounting
    firm.(1)
23
.2
Consent of Pryor Cashman Sherman & Flynn LLP (included
    in Exhibit 5.1).(1)
24
.1
Power of Attorney (included on the signature page).(1)
(1)
Filed herewith.
Item 9.
Undertakings
(a) The undersigned registrant hereby undertakes:
(1) To file during any period in which offers or sales are
    being made, a post-effective amendment to this registration
    statement to include any material information with respect to
    the plan of distribution not previously disclosed in this
    registration statement or any material change to such
    information in this registration statement.
(2) That, for the purpose of determining any liability
    under the Securities Act of 1933, each such post-effective
    amendment shall be deemed to be a new registration statement
    relating to the securities offered therein, and the offering of
    such securities at that time shall be deemed to be the initial
    bona fide offering thereof.
(3) To remove from registration by means of a
    post-effective amendment any of the securities being registered
    which remain unsold at the termination of the offering.
(b) The undersigned registrant hereby further undertakes
that, for purposes of determining any liability under the
Securities Act of 1933, each filing of the registrant's
annual report pursuant to Section 13(a) or
Section 15(d) of the Securities Exchange Act of 1934 (and,
where applicable, each filing of an employee benefit plan's
annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934), that is incorporated by reference in the
registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
(c) The undersigned registrant hereby undertakes to deliver
or cause to be delivered with the prospectus, to each person to
whom the prospectus is sent or given, the latest annual report
to security holders that is incorporated by reference in the
prospectus and furnished pursuant to and meeting the
requirements of Rule 14a-3 or Rule 14c-3 under the
Securities Exchange Act of 1934; and, where interim financial
information required to be presented by Article 3 of
Regulation S-X are not set forth in the prospectus, to
deliver, or cause to be delivered to each person to whom the
prospectus is sent or given, the latest quarterly report that is
specifically incorporated by reference in the prospectus to
provide such interim financial information.
(d) Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the registrant pursuant to
the provisions described in Item 15 above, or otherwise,
the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act of 1933
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act of 1933 and will be governed by the final
adjudication of such issue.
II-3
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on
Form S-8 and has duly caused this registration statement to
be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Bothell, State of Washington, on the
26
th
day of July, 2005.
NASTECH PHARMACEUTICAL
COMPANY INC.
By:
/s/ Steven C. Quay
Steven C. Quay
Chairman of the Board, President and
Chief Executive Officer
KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned
constitutes and appoints STEVEN C. QUAY, M.D., PH.D., and
GREGORY L. WEAVER, and each of them, his true and lawful
attorneys-in-fact and agents, with full power of substitution
and resubstitution, for him and in his name, place and stead, in
any and all capacities, to sign this registration statement
(including all pre-effective and post-effective amendments
thereto), and to file the same, with all exhibits thereto, and
other documents in connection therewith, with the Securities and
Exchange Commission, granting unto such attorneys-in-fact and
agents, and each of them, full power and authority to do and
perform each and every act and thing requisite and necessary to
be done in and about the premises, as fully to all intents and
purposes as he might or could do in person, hereby ratifying and
confirming all that such attorneys-in-fact and agents or any of
them, or their or his substitute or substitutes, may lawfully do
or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as
amended, this registration statement has been signed by the
following persons in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Steven C. Quay
Steven
    C. Quay, M.D., Ph.D.
Chairman of the Board, President and Chief Executive Officer
(Principal Executive Officer)
July 26, 2005
/s/ Gregory L. Weaver
Gregory
    L. Weaver
Chief Financial Officer
(Principal Financial and
Accounting Officer)
July 26, 2005
/s/ Susan B. Bayh
Susan
    B. Bayh
Director
July 26, 2005
/s/ J. Carter Beese, Jr.
J.
    Carter Beese, Jr.
Director
July 26, 2005
/s/ Dr. Alexander D. Cross
Dr.
    Alexander D. Cross
Director
July 26, 2005
/s/ Dr. Ian R. Ferrier
Dr.
    Ian R. Ferrier
Director
July 26, 2005
Table of Contents
Signature
Title
Date
/s/ Myron Z. Holubiak
Myron
    Z. Holubiak
Director
July 26, 2005
/s/ Leslie D. Michelson
Leslie
    D. Michelson
Director
July 26, 2005
/s/ John V. Pollock
John
    V. Pollock
Director
July 26, 2005
/s/ Gerald T. Stanewick
Gerald
    T. Stanewick
Director
July 26, 2005
/s/ Bruce R. Thaw
Bruce
    R. Thaw
Director
July 26, 2005
/s/ Devin N. Wenig
Devin
    N. Wenig
Director
July 26, 2005
Table of Contents
EXHIBIT INDEX
Exhibit
No.
Description
4
.1
Form of Common Stock Certificate (filed as Exhibit 4.1 to
    our Registration Statement on Form S-3, File
    No. 333-119429, and incorporated herein by reference).
4
.5
Rights Agreement, dated February 22, 2000, between the
    Company and American Stock Transfer & Trust Company as
    Rights Agent (filed as Exhibit 1 to our Current Report on
    Form 8-K dated February 22, 2000 and incorporated herein by
    reference).
4
.6
Securities Purchase Agreement dated as of June 25, 2004
    (filed as Exhibit 99.2 to our Current Report on Form 8-K
    dated June 25, 2004 and incorporated herein by reference).
5
.1
Opinion of Pryor Cashman Sherman & Flynn LLP.(1)
10
.1
Nastech Pharmaceutical Company Inc. 2004 Stock Incentive Plan
    (filed as Exhibit 99 to our Registration Statement on
    Form S-8, File No. 333-118206, and incorporated herein
    by reference).
10
.2
Amendment No. 1 to Nastech Pharmaceutical Company Inc. 2004
    Stock Incentive Plan dated July 20, 2005 (filed as
    Exhibit 10.4 to our Current Report on Form 8-K dated
    July 20, 2005, and incorporated herein by reference).
23
.1
Consent of KPMG LLP, independent registered public accounting
    firm.(1)
23
.2
Consent of Pryor Cashman Sherman & Flynn LLP (included
    in Exhibit 5.1).(1)
24
.1
Power of Attorney (included on the signature page).(1)
(1)
Filed herewith.