Nastech Pharmaceutical Company Inc. and Merck & Co., Inc. announced that they have entered into a global alliance to develop and commercialize Peptide YY 3-36 Nasal Spray (PYY), Nastech's Phase I product for the treatment of obesity.

Under the agreement, Merck will assume primary responsibility for clinical and non-clinical studies and regulatory approval.

The investigational PYY3-36 Nasal Spray, currently in Phase I development, is designed to deliver the natural, appetite-regulating hormone PYY directly to the bloodstream. Nastech has completed three Phase I clinical trials, each designed to answer specific questions regarding safety, tolerability, dosing and scheduling.

"Nastech's innovative research and development capabilities are reflected in its rapid advancement of PYY," said Peter S. Kim, Ph.D., president of Merck Research Laboratories. "Our alliance with Nastech recognizes the potential of PYY as a possible treatment for obesity, a disease with significant unmet medical need."

"It is extremely encouraging to see groundbreaking research in obesity applied toward the development of potential treatments to target this epidemic," said Barbara Corkey, Ph.D., president of the North American Association for the Study of Obesity, the nation's leading scientific society dedicated to advancing research and treatment of obesity.

Peptide YY is a naturally occurring hormone that has been implicated as a physiologic inhibitor of food intake. PYY is produced by specialized endocrine cells (L-cells) in the gut after a person eats and is believed to trigger the feeling of satiety, or fullness. Because PYY is a protein, initial studies focused on PYY delivery by injection. Utilizing its proprietary drug delivery technology, Nastech developed the nasal spray formulation of PYY as a unique, non-invasive treatment option for obesity.