SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

QUAY STEVEN C

(Last)

(First)

(Middle)

3450 MONTE VILLA PARKWAY

(Street)

BOTHELL

98021

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
NASTECH PHARMACEUTICAL CO INC [ NSTK ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	Chairman, President and CEO

3. Date of Earliest Transaction (Month/Day/Year)
07/11/2005

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Nastech Pharmaceutical Co. Common Stock	07/11/2005		M		54,154	A	$15	322,154	D
Nastech Pharmaceutical Co. Common Stock	07/11/2005		S		12,744	D	$15	309,410	D
Nastech Pharmaceutical Co. Common Stock	07/11/2005		S		100	D	$15.01	309,310	D
Nastech Pharmaceutical Co. Common Stock	07/11/2005		S		492	D	$15.03	308,818	D
Nastech Pharmaceutical Co. Common Stock	07/11/2005		S		3,854	D	$15.14	304,964	D
Nastech Pharmaceutical Co. Common Stock	07/11/2005		S		18,149	D	$15.15	286,815	D
Nastech Pharmaceutical Co. Common Stock	07/11/2005		S		15,315	D	$15.16	271,500	D
Nastech Pharmaceutical Co. Common Stock	07/11/2005		S		3,500	D	$15.17	268,000	D
Nastech Pharmaceutical Co. Common Stock								593,940	I	By K-Quay Enterprises LLC⁽¹⁾

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Nastech Pharmaceutical Stock Options	$15	07/11/2005		X			54,154	08/07/2003	08/07/2005	Common Stock	54,154	$15	945,846	D

Explanation of Responses:

1. Shares owned by K-Quay Enterprises LLC, of which Dr. Steven C. Quay is the President.

Remarks:

54,154 options were exercised in a cashless transaction at $15.00 per share and sold at an average price of $15.12. The options were granted on August 7, 2000, the commencement date of Dr. Quay's employment, at an exercise price of $15.00 per share. The options had an expiration date of August 7, 2005.

	/s/ Gregory L. Weaver Gregory L. Weaver Attorney in Fact	07/13/2005
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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