Par Pharmaceutical Companies Inc. has entered into a licensing agreement with developer Nastech Pharmaceutical Company Inc. to market a calcitonin-salmon nasal spray.

In February 2004, the US Food and Drug Administration accepted for filing Nastech's Abbreviated New Drug Application for the product. Novartis AG currently markets calcitonin-salmon nasal spray under the brand name Miacalcin. The product is indicated for the treatment of postmenopausal osteoporosis and has annual US sales of approximately $240 million.

Under the terms of the agreement, Par has exclusive rights to market, sell and distribute calcitonin-salmon nasal spray in the US. Nastech is responsible for obtaining regulatory approval for the product and for supplying the product to Par. Nastech will receive milestone payments and a share of the profits from the sales of the product.

"Nastech's highly innovative approach to nasal drug formulation and delivery distinguishes them as a leader in this therapeutic area," said Scott Tarriff, president and chief executive officer of Par. "We look forward to working closely with our new partner to successfully commercialize this product, and to providing patients with a much desired generic alternative," added Scott.

"We believe Par represents an excellent partner with significant experience in specialty pharmaceutical marketing and the resources necessary to maximize the commercial potential of this product candidate," said Steven C. Quay, chairman, president and chief executive officer of Nastech.

Nastech Pharmaceutical Company Inc, located in Bothell, Washington, is developing a platform technology for delivering both small and large molecule drugs by nasal administration. Par Pharmaceutical Companies Inc. develops, manufactures and markets generic pharmaceuticals through its principal subsidiary, Par Pharmaceutical Inc, and its recently acquired subsidiary, Kali Laboratories Inc.