Nastech Pharmaceutical Company Inc. announced August 14th it was beginning a new study aimed at finding an optimal dose or doses of its weight-loss nasal spray, PYY3-36, so it could then move forward with a Phase II clinical trial.

The announcement comes five months after Merck & Company gave up on PYY3-36 after concluding from a "Preliminary Proof of Concept Study" that the drug was not effective, turning all rights back to Nastech.

Nastech has steadfastly said it continues to believe in PYY3-36, which in earlier trials showed promise at reducing caloric intake when taken intravenously.

PYY3-36 is a hormone that occurs naturally in the small intestine after a person consumes food and it is thought to send messages to the brain to signaling fullness.

Nastech said the new study, to be completed before the end of the year, will test multiple doses of PYY3-36 nasal spray and an intravenous dose in 12 obese patients with a BMI of between 30 and 40 in an effort to identify nasal spray doses that result in similar caloric reduction to the intravenous dose.

"We are pleased to be back in the clinic with PYY3-36. This study will provide insight into the optimal doses of PYY to reduce food intake," said Dr. Steven C. Quay, CEO of Nastech.

Nastech previously announced it would seek to press forward with a Phase II clinical trial program, after which it hopes to find a new commercial partnership for PYY with a major pharmaceutical company.