Nycomed Confirms Commitment to GATTEX(TM) Partnership; NPS to Receive $25 Million Payment



    BEDMINSTER, N.J., Oct. 31 /CNW/ -- NPS Pharmaceuticals, Inc. (Nasdaq:  
NPSP) announced today that Nycomed, after an in-depth review of the results
from the recently completed Phase 3 study in Short Bowel Syndrome, has
confirmed its intention to proceed with the development and commercialization
of GATTEX(TM) (teduglutide) outside North America.  Under the terms of the
partnership agreement signed in September, Nycomed will pay NPS the $25
million up-front payment balance due and receive licensing rights to develop
and commercialize GATTEX outside the United States, Canada and Mexico for the
treatment of gastrointestinal disorders.  NPS will retain the right to develop
and commercialize GATTEX in North America.
    In addition to the $35 million total up-front payment, NPS has the
potential to earn up to $150 million in payments related to the attainment of
certain regulatory milestones for the SBS indication, the successful
development of new indications and the achievement of sales-based milestones.
Additionally, the agreement provides for double-digit royalties on GATTEX
sales in the Nycomed territories.  The agreement also provides for development
cost-sharing on a 50:50 basis for indications which are pursued jointly.
    Nycomed CEO Hakan Bjorklund stated: "We look forward to working with NPS
to develop and commercialize GATTEX as a new therapy for SBS and potentially
for other serious gastrointestinal conditions.  We believe GATTEX will be an
important addition to our product pipeline and expect it to complement our
development and marketing capabilities in the gastroenterology field."
    NPS president and CEO Dr. Tony Coles stated:  "We are pleased that our
partner, Nycomed, has confirmed its commitment to the development of GATTEX
outside North America based upon the results of the recently completed Phase 3
SBS study.  We greatly appreciate their vote of confidence in GATTEX and look
forward to discussing the study results with the FDA so we can proceed as
rapidly as possible with the next steps required to obtain regulatory approval
of the drug in the United States.  With our recent successful financing and
asset monetization activities and Nycomed's commitment to GATTEX, NPS is now
in an excellent position to complete the registration of GATTEX in SBS and
pursue its development in multiple indications."
    A potential first-in-class drug, GATTEX is a proprietary analog of
naturally occurring human glucagon-like peptide 2 (GLP-2), a peptide secreted
primarily in the distal intestine and involved in the regeneration and repair
of the intestinal epithelium.  In addition to its potential use in short bowel
syndrome, NPS is also pursuing development of GATTEX as a possible treatment
for chemotherapy-induced gastrointestinal mucositis in cancer patients and
necrotizing enterocolitis in preterm infants.
    
    About NPS
    
    NPS Pharmaceuticals is a biopharmaceutical company focused on the
development and commercialization of small molecules and recombinant proteins
as drugs, primarily for the treatment of metabolic, bone and mineral, and
central nervous system disorders. The company has drug candidates in various
stages of clinical development. Additional information is available on the
company's website, http://www.npsp.com.
    
    About Nycomed
    
    Nycomed is a pharmaceutical company that provides medicines for
hospitals, specialists and general practitioners, as well as over-the-counter
medicines in selected markets.  The company is active within a range of
therapeutic areas, including cardiology, gastroenterology, osteoporosis,
respiratory, pain and tissue management.  New products are sourced both from
own research and from external partners.  Operating throughout Europe and in
fast-growing markets such as Latin America, Russia/CIS and the Asia-Pacific
region, Nycomed has a presence in about 50 markets worldwide.  Privately
owned, the combined group had annual sales of approximately euro 3.4 billion
and an EBITDA of euro 933.4 million (2006 results).  For more information
visit http://www.nycomed.com
    Note: Statements made in this press release, which are not historical in
nature, constitute forward-looking statements for purposes of the safe harbor
provided by the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and beliefs and are
subject to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements. All information in this press release is as of October 31, 2007
and we undertake no duty to update this information. A more complete
description of these risks can be found in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for the
year-ended December 31, 2006 and our Quarterly Report on Form 10-Q for the
quarter-ended June 30, 2007.




For further information:

For further information: Brandi Simpson of NPS Pharmaceuticals, Inc., 
+1-908-450-5616 Web Site: http://www.npsp.com

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NPS PHARMACEUTICALS, INC.

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