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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
COMMISSION FILE NUMBER 0-13789
NASTECH PHARMACEUTICAL COMPANY INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 11-2658569
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
45 DAVIDS DRIVE, HAUPPAUGE, NEW YORK 11788
(Address of principal executive offices) (Zip Code)
</TABLE>
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (516) 273-0101
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: None
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
<TABLE>
<CAPTION>
Name of each exchange
Title of each class on which registered
------------------- -------------------------
<S> <C>
Common Stock, $.006 par value Nasdaq National Market
</TABLE>
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
<TABLE>
<CAPTION>
DATE CLASS SHARES OUTSTANDING
<S> <C> <C>
09/30/97 Common stock - $.006 par value 6,092,824
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NASTECH PHARMACEUTICAL COMPANY INC.
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>
ITEM 1 - FINANCIAL STATEMENTS PAGE
<S> <C>
Balance Sheets as of September 30, 1997 and December 31, 1996 .....................................................1
Statements of Operations for the nine months ended September 30, 1997 and 1996 and the three months ended
September 30, 1997 and 1996 .....................................................................................2
Statements of Stockholders' Equity for the nine months ended September 30, 1997 and year ended
December 31, 1996 .................................................................................................3
Statements of Cash Flows for the nine months ended September 30, 1997 and 1996 ...................................4
Notes to Financial Statements ....................................................................................5
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ...........................6-8
PART II - OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8K ....................................................................................9
SIGNATURES ........................................................................................................10
</TABLE>
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PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
NASTECH PHARMACEUTICAL COMPANY INC.
BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1997 1996
--------------- --------------
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,162 $ 4,494
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,025
Royalties and fees receivable . . . . . . . . . . . . . . . . . . . . . . . 927 798
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 592 -
Prepaid expenses and sundry . . . . . . . . . . . . . . . . . . . . . . . . 146 80
--------------- --------------
Total current assets 27,827 12,397
--------------- --------------
Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,032 513
Less: Accumulated depreciation and amortization . . . . . . . . . . . . . . 278 128
--------------- --------------
Property and equipment, net . . . . . . . . . . . . . . . . . . . . . 754 385
--------------- --------------
Other assets:
Deferred offering costs . . . . . . . . . . . . . . . . . . . . . . . . . . - 98
Security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 14
--------------- --------------
Total other assets . . . . . . . . . . . . . . . . . . . . . . . . . . 15 112
--------------- --------------
Total assets $ 28,596 $ 12,894
=============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 935 $ 587
Royalties payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 236
Accrued expenses and sundry liabilities . . . . . . . . . . . . . . . . . . 446 216
Current maturities of long-term debt . . . . . . . . . . . . . . . . . . . . 12 15
--------------- --------------
Total current liabilities 1,842 1,054
--------------- --------------
Long-term debt, net of current maturities . . . . . . . . . . . . . . . . . . . 19 27
--------------- --------------
Stockholders' equity:
Common stock, $.006 par value; authorized: 25,000,000 shares; issued and
outstanding: 6,092,824 shares at September 30, 1997 and 4,706,158
shares at December 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . 37 28
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . 35,788 18,325
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,090) (6,540)
--------------- --------------
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . 26,735 11,813
--------------- --------------
Total liabilities and stockholders' equity . . . . . . . . . . . . . . $ 28,596 $ 12,894
=============== ==============
</TABLE>
See accompanying notes to financial statements.
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NASTECH PHARMACEUTICAL COMPANY INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
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<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30, THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------- -----------------------------------
1997 1996 1997 1996
--------------- -------------- --------------- ----------------
<S> <C> <C> <C> <C>
Revenues
License fee, royalty and research income . . $ 2,972 $ 3,166 $ 1,026 $ 1,059
Interest income . . . . . . . . . . . . . . 1,079 216 382 103
--------------- -------------- --------------- ----------------
Total revenues . . . . . . . . . . . . . 4,051 3,382 1,408 1,162
--------------- -------------- --------------- ----------------
Costs and expenses:
Research and development . . . . . . . . . . 2,785 800 1,261 341
Royalties . . . . . . . . . . . . . . . . . 1,394 1,413 449 474
Sales and marketing . . . . . . . . . . . . 1,249 120 492 27
General and administrative . . . . . . . . . 1,168 642 483 231
Interest expense . . . . . . . . . . . . . 5 29 1 9
--------------- -------------- --------------- ----------------
Total costs and expenses . . . . . . . . 6,601 3,004 2,686 1,082
--------------- -------------- --------------- ----------------
Net income (loss) . . . . . . . . . . . . . . . $ (2,550) $ 378 $ (1,278) $ 80
=============== ============== =============== ================
Net income (loss) per common share . . . . . . $ (.43) $ .09 $ (.21) $ .02
=============== ============== =============== ================
Average shares outstanding . . . . . . . . . . 5,937,269 4,201,938 6,089,781 4,628,238
=============== ============== =============== ================
</TABLE>
See accompanying notes to financial statements.
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NASTECH PHARMACEUTICAL COMPANY INC.
STATEMENTS OF STOCKHOLDERS' EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND YEAR
ENDED DECEMBER 31, 1996
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
COMMON STOCK ADDITIONAL TOTAL
---------------------- PAID-IN ACCUMULATED STOCKHOLDERS'
SHARES AMOUNT CAPITAL DEFICIT EQUITY
---------- ---------- ------------ --------------- --------------
<S> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1995 . . . . . . . . . . . . . . 3,221,447 $ 19 $ 10,575 $ (6,486) $ 4,108
Shares issued in connection with exercise of warrants . 605,173 4 3,158 --- 3,162
Fractional shares redeemed in connection with reverse
stock split . . . . . . . . . . . . . . . . . . . . (187) --- --- --- ---
Shares issued in connection with exercise of warrants . 879,817 5 4,592 --- 4,597
Fractional shares redeemed in connection with reverse
stock split . . . . . . . . . . . . . . . . . . . . (92) --- --- --- ---
Net loss for year ended December 31, 1996 . . . . . . . --- --- --- (54) (54)
---------- ---------- ------------ --------------- --------------
BALANCE, DECEMBER 31, 1996 . . . . . . . . . . . . . . 4,706,158 28 18,325 (6,540) 11,813
Additional shares issued in connection with public
offering at $14.00 per share, net of issuance costs 1,380,000 9 17,460 --- 17,469
Shares issued in connection with exercise of stock
options . . . . . . . . . . . . . . . . . . . . . . . 6,666 --- 3 --- 3
Net loss for nine months ended September 30, 1997 . . . --- --- --- (2,550) (2,550)
---------- ---------- ------------ --------------- --------------
BALANCE, SEPTEMBER 30, 1997 . . . . . . . . . . . . . 6,092,824 $ 37 $ 35,788 $ (9,090) $ 26,735
========== ========== ============ =============== ==============
</TABLE>
See accompanying notes to financial statements.
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NASTECH PHARMACEUTICAL COMPANY INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
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<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
-------------------------------
1997 1996
-------------- -------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net (loss) income $ (2,550) $ 378
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 161 39
Changes in assets and liabilities:
Royalties and fees receivable . . . . . . . . . . . . . . . . . . . . . . (129) (341)
Prepaid expenses and sundry . . . . . . . . . . . . . . . . . . . . . . . (66) (74)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (592) ---
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 (328)
Royalties payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 127
Accrued expenses and sundry liabilities . . . . . . . . . . . . . . . . . 230 (149)
-------------- -------------
Net cash used in operating activities . . . . . . . . . . . . . . . . . . . . (2,385) (348)
-------------- -------------
INVESTING ACTIVITIES:
Short-term investments -- acquisitions . . . . . . . . . . . . . . . . . . (969) (12,097)
Short-term investments -- redemptions . . . . . . . . . . . . . . . . . . 7,994 10,355
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . (530) (82)
-------------- -------------
Net cash provided by (used in) investing activities . . . . . . . . . . . . . 6,495 (1,824)
-------------- -------------
FINANCING ACTIVITIES:
Net proceeds from sale of common stock . . . . . . . . . . . . . . . . . . 17,566 ---
Exercise of warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . --- 3,376
Exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . 3 ---
Addition repayment of long-term debt . . . . . . . . . . . . . . . . . . (11) (297)
-------------- -------------
Net cash provided by financing activities . . . . . . . . . . . . . . . . . . 17,558 3,079
-------------- -------------
Net increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . 21,668 907
Cash and cash equivalents--beginning . . . . . . . . . . . . . . . . . . . . 4,494 420
-------------- -------------
Cash and cash equivalents--ending . . . . . . . . . . . . . . . . . . . . . . $ 26,162 $ 1,327
============== =============
</TABLE>
See accompanying notes to financial statements.
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NASTECH PHARMACEUTICAL COMPANY INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 -- GENERAL
The accompanying financial information should be read in conjunction with
the audited financial statements, including the notes thereto, as of and for
the six months ended December 31, 1996.
The information furnished in this report reflects all adjustments
(consisting of only normal recurring accruals) which are, in the opinion of
management, necessary for a fair statement of the results for the interim
periods.
NOTE 2 -- PUBLIC OFFERING
The Company completed a public offering of 1,380,000 shares of common stock
at $14.00 per share in February, 1997. The proceeds to the Company of
$17,469,000 was net of direct expenses of the offering totaling $1,851,000. In
connection with this public offering, the Company has agreed to issue to the
representatives of the underwriters warrants to purchase in the aggregate up to
69,000 shares of Common Stock (the "Representatives' Warrants") at an exercise
price per share equal to 120% of the public offering price per share. The
Representatives' Warrants are exercisable for a period of four years commencing
January 24, 1998. The holders of the Representatives' Warrants will have no
voting, dividend or other stockholder rights until the Representatives'
Warrants are exercised. The Company has granted the Representatives certain
registration rights related to the Representatives' Warrants.
NOTE 3 -- INVENTORIES
At September 30, 1997, inventories are stated at the lower of cost (first-
in, first- out basis) or market and consists principally of raw materials.
NOTE 4 -- NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE
Net income per common and common equivalent share are calculated using the
weighted average number of common shares outstanding during the period and the
net additional number of shares which would be issuable upon the exercise of
stock options and warrants, assuming that the Company used the proceeds
received to purchase additional shares at market value. For the nine and three
months ending September 30, 1997, the effect of stock options and warrants is
not included because it would be anti-dilutive.
NOTE 5 -- INCOME TAXES
At September 30, 1997, the Company has net operating loss carryforwards of
approximately $6,500,000 for income tax purposes, available to reduce future
taxable income, expiring from 2000 through 2012. Federal income taxes normally
provided for income have been offset by the effect of the reduction of the
valuation allowance for the nine and three months ended September 30, 1996.
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ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
OVERVIEW
Except for historical information contained herein, the statements in this
Item are forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties
which may cause the Company's actual results in future periods to differ
materially from forecasted results. Those include, among others, risks
associated with the Company's business strategy, product development, plans
concerning the commercialization of products, certain financial information and
other statements that are not historical facts.
The Company is engaged in the research, development, manufacturing and
commercialization of nasally administered forms of prescription and
over-the-counter pharmaceuticals that are currently delivered in oral,
injectable or other dosage forms. The nasal delivery of certain
pharmaceuticals can enable more rapid systemic absorption, lower required
dosages, quicker onset of desired effect, and painless, convenient patient
self-administration.
In December 1991, Bristol-Myers Squibb Company ("BMS") received marketing
approval from the FDA for a nasal formulation of Stadol NS(TM), a narcotic
analgesic, which was sublicensed to BMS by the Company. Since 1992, the
Company received royalties from BMS, and these royalties represent a
significant portion of revenues for the Company. Stadol NS(TM) has been
classified by the FDA as a scheduled drug, which could negatively affect
future sales by BMS and royalties to the Company.
In November 1996, the Company received FDA marketing clearance for
Nascobal(TM), its vitamin B-12 nasal gel. In July 1997, the Company entered
into an exclusive licensing agreement in the U.S. with Schwarz Pharma, Inc. and
commenced the launch of Nascobal(TM) in the U.S. in October, 1997. The Company
will receive royalties on domestic sales of Nascobal(TM), including a minimum
royalty in 1998, and a manufacturing profit on its transfer of the product to
Schwarz Pharma Inc.
During the last quarter, the Company has continued to refine its product
development pipeline. To date it has three compounds in active development,
including one with a major pharmaceutical company. In addition, the Company is
considering two to four other compounds for future R&D activity. In the past,
the Company's product development strategy has generally been to seek strategic
alliances in order to minimize the risk, time and cost typically associated
with the early stages of commercializing a family of pharmaceuticals. The
Company believes it is now able to leverage its product development experience
and broad product pipeline to pursue internally funded development projects.
The Company believes that postponing the establishment of strategic alliances
until later stages of product development will allow the Company to negotiate
more favorable collaborative agreements and retain product rights. Therefore,
the Company intends to commit significant financial resources to research and
development with the goal of achieving greater economic benefit from product
sales.
On February 11, 1997, the Company changed its year end from September 30 to
December 31.
RESULTS OF OPERATIONS
Nine Months Ended September 30, 1997 Compared to Nine Months Ended September
30, 1996
Revenues. Revenues for the nine months ended September 30, 1997 increased
by $669,000 to $4,051,000, or 20%, more than such revenues for the nine months
ended September 30, 1996. This increase was due to decreases in license fee,
royalty and research income, which for the nine months ended September 30, 1997
decreased by $194,000 to $2,972,000, or 6%, less than such income for the nine
months ended September 30, 1996 which were more than offset by an increase in
interest income. The license fee, royalty and research income decrease
primarily was due to a decrease in research income of approximately $130,000.
Royalty income received from BMS for the current the nine-month period
decreased by $26,000 to $2,848,000, from such income for the similar period in
1996. Interest income for the current nine-month period increased by $863,000
to $1,079,000, or 400%, compared to such income for the similar period in 1996
due to an increase in the amount of excess funds invested from proceeds
received from the 1997 public offering and exercise of warrants from the 1993
offering.
Research and development expense. In the nine months ended September 30,
1997, the Company continued
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to conduct pharmaceutical and pharmacological research and assemble the
technical and reference data required to gain marketing approval from the
appropriate regulatory agencies for its products in development. Research and
development expense for the nine months ended September 30, 1997 increased by
$1,985,000 to $2,785,000, or 248%, over such expense for the nine months ended
September 30, 1996. Such increase was due to the execution of the Company's
strategy to accelerate development of its nasal pharmaceutical formulations.
Royalties expense. Royalties expense for the nine months ended September
30, 1997 decreased by $19,000 to $1,394,000, or 1%, from such expense for the
nine months ended September 30, 1996. Such decrease was due to the decrease in
royalties paid by the Company to the University of Kentucky Research Foundation
("UKRF") in connection with sales of Stadol NS(TM) by BMS. Pursuant to a
separate license agreement between the Company and UKRF, the Company pays UKRF
royalties based on royalty income received by the Company from BMS.
Accordingly, royalties expense payable to the UKRF increases or decreases
approximately in proportion to royalty income received from BMS.
Sales and Marketing. Sales and marketing expense for the nine months ended
September 30, 1997 increased by $1,129,000 to $1,249,000, or 941%, as compared
to the 1996 period primarily as a result of expenses associated with the
planned launch of the Company's Nascobal(TM) product. As a result of the
licensing agreement with Schwarz Pharma Inc. noted above, however, the Company
anticipates that sales and marketing expense will decrease during the remainder
of 1997. Sales and marketing costs also include expenses incurred related to
development of the Company's collaborative agreements.
General and administrative expense. General and administrative expense for
the nine months ended September 30, 1997 increased by $526,000 to $1,168,000,
or 82% over such expense for the nine months ended September 30, 1996 due to
increased staffing costs and other support costs associated with the
accelerated development of the Company's nasal pharmaceutical formulations and
strategic planning.
RESULTS OF OPERATIONS
Three Months Ended September 30, 1997 Compared to Three Months Ended
September 30, 1996
Revenues. Revenues for the three months ended September 30, 1997 increased
by $246,000 to $1,408,000, or 21%, more than such revenues for the three months
ended September 30, 1996. This increase was due to decreases in license fee,
royalty and research income, which for the three months ended September 30,
1997 decreased by $33,000 to $1,026,000, or 3%, less than such income for the
three months ended September 30, 1996 offset by an increase in interest
income. Royalty income received from BMS for the current three-month period
decreased by $47,000, or 5%, to $919,000, from such income for the similar
period in 1996. Interest income for the current three-month period increased
by $279,000 to $382,000, or 271%, compared to such income for the similar
period in 1996 due to an increase in the amount of excess funds invested from
proceeds received from the 1997 public offering and exercise of warrants from
the 1993 offering.
Research and development expense. In the three months ended September 30,
1997, the Company continued to conduct pharmaceutical and pharmacological
research and assemble the technical and reference data required to gain
marketing approval from the appropriate regulatory agencies for its products in
development. Preclinical and clinical research and development expense for the
three months ended September 30, 1997 increased by $920,000 to $1,261,000, or
270%, over such expense for the three months ended September 30, 1996. Such
increase was due to the execution of the Company's strategy to accelerate
development of its nasal pharmaceutical formulations.
Royalties expense. Royalties expense for the three months ended September
30, 1997 decreased by $25,000 to $449,000, or 5%, from such expense for the
three months ended September 30, 1996. Such decrease was due to the decrease
in royalties paid by the Company to the UKRF in connection with sales of Stadol
NS(TM) by BMS. Pursuant to a separate license agreement between the Company
and UKRF, the Company pays UKRF royalties based on royalty income received by
the Company from BMS. Accordingly, royalties expense payable to the UKRF
increases or decreases approximately in proportion to royalty income received
from BMS.
Sales and Marketing. Sales and marketing expense for the three months ended
September 30, 1997 increased by $465,000 to $492,000, or 1,722%, as compared to
the 1996 period primarily as a result of expenses associated with the planned
launch of the Company's Nascobal(TM) product. As a result of the licensing
agreement with Schwarz Pharma Inc. noted above, however, the Company
anticipates that sales and marketing expense will decrease during the
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remainder of 1997. Sales and marketing costs also include expenses incurred
related to development of the Company's collaborative agreements.
General and administrative expense. General and administrative expense for
the three months ended September 30, 1997 increased by $252,000 to $483,000,
or 109% over such expense for the three months ended September 30, 1996 due to
increased staffing costs and other support costs associated with the
accelerated development of the Company's nasal pharmaceutical formulations and
strategic planning.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1997, the Company's liquidity included cash and cash
equivalents of $26.2 million compared to cash and cash equivalents and short
term investments of $11.5 million at December 31, 1996. These amounts
consisted primarily of the funds received from the 1997 public offering and the
exercise of warrants outstanding from the Company's December 1993 public
offering. Royalties and fees receivable at September 30, 1997, consists
principally of royalty income receivable from BMS.
The Company anticipates that the availability of funds provided by the net
royalties received from BMS, revenues expected from the sales of Nascobal(TM),
as well as the liquidity provided by the public offerings noted above will be
used for (i) research and development, including clinical trials, (ii) capital
expenditures, principally for manufacturing, (iii) license or acquisition of
products and technologies for product development and (iv) working capital and
other general corporate purposes.
At September 30, 1997, the Company had working capital of $26.0 million.
Management anticipates that its current cash position, together with cash
generated from operations will provide adequate funds for the Company's
anticipated needs, including working capital, through 1998. Based upon the
anticipated future financing requirements of the Company, management expects
that the Company may, from time to time, engage in additional financings of a
character and in amounts to be determined.
The foregoing Management's Discussion and Analysis of Financial Condition
and Results of Operations contains various "forward looking statements" within
the meaning of Section 27A of the Securities Act which represent the Company's
intentions, expectations or beliefs concerning future events, including, but
not limited to, statements regarding management's expectations with respect to
FDA approval of new products, technology and product development milestones,
the ability of the Company to leverage its product development and negotiate
favorable collaborative agreements, the commencement of sales and the
sufficiency of the Company's cash flow for the Company's future liquidity and
capital resource needs. These forward looking statements are qualified by
important factors that could cause actual results to differ materially from
those in the forward looking statements.
RECENTLY ISSUED ACCOUNTING STANDARDS
In February 1997, the financial Account Standards Board issued Statement of
Financial Accounting Standards No. 128 (SFAS 128), "Earnings Per Share". SFAS
128 establishes standards for computing and presenting earnings per share. In
accordance with the effective date of SFAS 128, the Company will adopt SFAS 128
as of December 31, 1997. This statement is not expected to have a material
impact on the Company's financial statements.
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PART II - OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
NONE
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, duly authorized, in the City of Hauppauge, State of New York, on
November 12, 1997.
NASTECH PHARMACEUTICAL COMPANY INC.
By: /s/ Vincent D. Romeo, Ph.D.
----------------------------------------
Vincent D. Romeo, Ph.D.
President and Chief Executive Officer
(Principal Executive Officer)
By: /s/ Andrew Zinzi
------------------------------------------------
Andrew Zinzi
Chief Financial Officer
(Principal Financial and Accounting Officer)
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 26,162
<SECURITIES> 0
<RECEIVABLES> 927
<ALLOWANCES> 0
<INVENTORY> 592
<CURRENT-ASSETS> 27,827
<PP&E> 1,032
<DEPRECIATION> 278
<TOTAL-ASSETS> 28,596
<CURRENT-LIABILITIES> 1,842
<BONDS> 19
0
0
<COMMON> 37
<OTHER-SE> 26,698
<TOTAL-LIABILITY-AND-EQUITY> 28,596
<SALES> 0
<TOTAL-REVENUES> 4,051
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6,596
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5
<INCOME-PRETAX> (2,550)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,550)
<EPS-PRIMARY> (.43)
<EPS-DILUTED> (.43)
</TABLE>
