Shares of Nastech cratered this morning, losing 30 percent of their value after the drug developer announced that Merck had returned the marketing rights to its obesity drug PYY3-36. Nastech said that Merck had terminated the deal after determining that the clinical data behind the drug showed that it was ineffective. But Nastech says that altering the dosage of the drug may make it work. PYY3-36 delivers a hormone through a nasal spray that regulates appetite.
"Nastech has both the human and the financial resources to drive the rapid development of PYY for obesity, and to also advance its other ongoing programs," said Nastech CEO Steven Quay. But Quay also noted that he intends to find another big pharma company to step in and partner on the drug.
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