Nastech Pharmaceutical plans to restructure in order to reduce operating expenses. The company will launch a subsidiary, MDRNA, Inc., as an independent, separately financed company, while the main company will concentrate on Phase II clinical and partnered programs.

Steven C. Quay, M.D., Ph.D., chairman, president and chief executive officer of Nastech, remarked, “The establishment of MDRNA as an independent company will better serve our shareholders by providing a structure that will help unlock the value of Nastech’s RNAi assets as well as expedite the development of new therapeutics based on this exciting new technology. Furthermore, by having Nastech concentrate on our core drug delivery technologies and our most advanced clinical programs it will enable us to make the greatest progress with the resources that are available.”

Nastech plans to concentrate its resources on its Phase II clinical development programs that are currently ongoing or planned, including PYY3-36 Nasal Spray for obesity, Insulin Nasal Spray for type 2 diabetes, and PTH1-34 Nasal Spray for osteoporosis.

The planned change in corporate structure will enable Nastech to continue its focus on the development of peptide and protein drug delivery technologies while better positioning MDRNA for strategic alliances and direct investment as it develops RNAi therapeutics targeting a broad range of diseases.

Finally, Nastech is implementing a workforce reduction plan “as soon as feasible,” according to a company statement.