Biotech Values

[DewDiligence]

Nastech Withdraws Public Offering of Common Stock

[To those who say that posts on message boards don’t matter, I say: wrong, they do matter. I think the incessant bashing of NSTK’s proposed stock offering on the Yahoo message board during the past 48 hours played a role in the company’s withdrawing the offer. My own posts—and those of Biowatch—were especially hard on the company and the CEO, labeling the proposed offering as an ugly case of “front running” by the CEO, who exercised options and sold his own shares immediately before announcing the proposed offering (#msg-7207429).

For me personally, the company’s withdrawing the offering shows good faith, but it doesn’t entirely erase the smell from the matter. I have no immediate plans to buy NSTK shares.]

http://biz.yahoo.com/prnews/050805/nyf071.html?.v=16

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Friday August 5, 4:01 pm ET

BOTHELL, Wash., Aug. 5 /PRNewswire-FirstCall/ -- Nastech Pharmaceutical Company Inc. (Nasdaq: NSTK ) announced today that it has withdrawn its previously announced public offering of 1.5 million shares of common stock under its shelf registration statement.

"We appreciate the interest shown by the investment community in Nastech as we continue to make progress in our research and clinical programs," said Steven C. Quay, M.D., Ph.D., Chairman, President and CEO of Nastech. "However, our present valuation requirements are not met by current market conditions, and we are fortunate to be in a strong financial position."

Nastech intended to use the net proceeds from this offering for general corporate purposes, including, among other things, funding of Nastech's intranasal Parathyroid Hormone (PTH 1-34) and RNAi clinical research and development programs, the clinical development of Nastech's other product candidates, capital expenditures and working capital needs. Nastech will continue to evaluate market conditions and other financing opportunities on an ongoing basis for the advancement of these research and development programs.
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