BOTHELL — Nastech Pharmaceutical Co. has a new name, stock symbol and chief executive officer today to match a seismic shift in the biotechnology firm’s focus.
In recent months, the ÂBothell-based company has signaled a desire to focus on RNA interference, a cellular mechanism that can halt proteins vital to expanding viruses in the body.
At first the company talked of spinning off that business, which is markedly different from its previous focus on developing nasally inhaled medications.
Instead, Nastech will now focus solely on RNA interferences, changing its name to mdRNA Inc. and bringing in J. Michael French as the new CEO. As of today, the company’s stock symbol is MRNA.
“What the company has recognized, or decided, is that RNAi represents very significant potential,” French said in an interview with the Associated Press. He believes mdRNA can be a critical player in the growing field.
French replaces Steven Quay, who took over Nastech in 2000 and later moved its corporate headquarters from New York to Bothell. Quay will be mdRNA’s chief scientific officer and remain as chairman of the board of directors.
French comes from Sirna Therapeutics, an RNAi company that made a splash on Wall Street when it garnered $1.1 billion in a buyout deal from Merck &Co in 2007.
Researchers and investors both see RNAi’s potential in the development of cutting-edge treatments for a range of conditions, including cancer. Nastech jumps into a widening pool of competitors in the field, including Merck with its Sirna unit and Alnylam Pharmaceuticals, which recently signed a lucrative development deal.
French said he’s confident that new therapies based on RNAi technology could come sooner than most people think, judging by industry interest and swift progression of the technology. He referred to researchers Craig Mello and Andrew Fire, whose shared Nobel Prize for medicine in 2006 came just eight years after their scientific discovery.
“What’s significant was the time between discovery and reward,” French said. “That normally takes decades because it takes time to understand the magnitude of the discovery, but it was so rapidly and quickly embraced that it is a testament to how important this biological process is.”
The new mdRNA had debated its future since last fall, when Procter &Gamble Pharmaceuticals terminated its agreement to help Nastech develop a nasal spray to treat osteoporosis. The drug development agreement potentially was worth more than $500 million.
Since then, Nastech’s shares plummeted 91 percent, from just below $14 a share to $1.19 as of Tuesday. The company also has laid off dozens of employees.
The new company will have about 80 employees, down from 230 last year. With more than 260 patents related to RNAi technology, mdRNA will focus on programs to treat flu and rheumatoid arthritis. As for the nasal delivery technology, which was focused on developing treatments for obesity, diabetes and osteoporosis, that business unit may be sold.
The Associated Press contributed to this story.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com
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