NPS Corp Pres

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January 2008
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Safe Harbor Statement

• This presentation contains forward-looking
  statements. These statements are based on
  managements current expectations and beliefs.
  Actual results could differ materially from those
  described. Please refer to Company documents
  filed with the SEC for a more detailed discussion
  of risks. The Company is under no obligation (and
  expressly disclaims any such obligation) to
  update or alter its forward-looking statements,
  whether as a result of new information, future
  events, or otherwise.
• January 2008

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The New NPS Delivering Value

• High-potential product pipeline
• Two Phase III compounds in multiple areas of
  unmet medical need
• Three IND-stage programs
• Experienced leadership team
• Strong financial profile
• Over 200 M in value from Cinacalcet royalties
• Over 130 in cash/short-term investments

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The New NPS 2007 Accomplishments

• Completed corporate restructuring
• Expect 08 burn of 35M - 45M
• Raised gt275M
• Retired 2008 convertible debt
• Completed Phase 3 GATTEX SBS study
• Executed GATTEX co-development agreement with
  Nycomed
• Strengthened leadership team

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The New NPS Experienced Leadership
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NPS Multiple Opportunities to Deliver Value
Product
Pre-IND
Phase 1
Phase 2
Phase 3
Commercial
Partner
cinacalcet
(Sensipar)
Amgen
Secondary HPT
(US/Europe)
Secondary HPT
(REGPARA)
Kirin
(Asia)
GATTEXTM
Nycomed
(ex-N.Am.)
SBS
Crohn's disease
CIGIM
NEC
Nycomed
PREOS
(ex-US)
Osteoporosis
(PREOTACT)
Hypoparathyroidism
calcilytics
GSK
(Worldwide)
Osteoporosis
NPSP156
CNS
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GATTEX Unique and Valuable Asset

• Analog of naturally occurring glucagon-like
  peptide 2 (GLP-2)
• Promotes GI mucosal regeneration
• Multiple potential indications with significant
  unmet needs
• Short bowel syndrome (SBS) Orphan Status
• Chemotherapy-induced GI mucositis (CIGIM)
• Necrotizing enterocolitis (NEC)
• Crohns disease
• Co-development with Nycomed

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GATTEX in SBS Study Overview

• 24-week dosing (0.05 or 0.10 mg/kg/d vs. placebo)
• Study enrollment
• 139 pts screened
• 83 pts randomized
• 71 pts completed the trial
• Efficacy measure
• Reduction in PN volume of 20
• Protocol required statistical significance in
  high-dose group before evaluating low-dose group

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GATTEX in SBSPromising Efficacy Results

• PN discontinuation
• 2 low-dose subjects at week 16
• 1 high-dose subject at week 24

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GATTEX in SBS Excellent Safety Profile

• Comparable incidence of SAEs
• Placebo 31.3
• Low dose 37.1
• High dose 34.4
• Most common AEs include
• Abdominal distention and pain
• Nausea and vomiting
• Injection site bruising and erythema
• Headache
• Only AE with significant difference versus
  placebo.

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GATTEX in SBS Path Forward

• Meeting with FDA Q1 2008
• Complete Phase 3-extension study Q1 2008
• If FDA accepts current data package, submit NDA
  in Q3 2008
• If not, start confirmatory study ASAP
• Efficacy endpoint 20 reduction in PN
• Adequate sample size and power
• Total Cost Estimate - 25M to 30M over 3 yrs.
• Simplified study design to be discussed with FDA

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GATTEX Nycomed Partnership Accelerates Global
Development

• Nycomed granted rights to develop and market
  GATTEX ex-N.Am.
• NPS receives
• 35M upfront (includes 25M post data release)
• Double-digit royalties
• Up to 150M in additional payments for regulatory
  approval of new indications and sales milestones
• Nycomed pays 50 of joint external development
  expenses

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GATTEX Addl Indications

• Necrotizing enterocolitis (NEC)
• Affects 12,000 neonates annually
• Mortality rate gt 50 in premature infants lt 1500
  grams
• No current treatment
• Pre-IND meeting with FDA in 2H 2008
• Chemotherapy-induced GI mucositis (CIGIM)
• Dose-limiting side effect of chemotherapy
• Affects gt 500,000 patients worldwide annually
• No current treatment
• Meeting with FDA in 2H 2008 to discuss Phase 2
  program
• Potential combined annual sales gt 500M
• Company estimate

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PREOS Osteoporosis Update

• After careful review, NPS has decided to focus on
  hypoparathyroidism (HypoPTH)
• Osteoporosis remains a viable opportunity
• PREOTACT performing well in Europe
• Good post-marketing safety record
• Requires US partner to assume cost and risk

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PREOS in HypoPTHA Low-Risk, High-Value
Opportunity

• FDA approved Orphan Drug status in Aug. 2007
• US prevalence 65,000 patients
• Symptoms Paresthesias, muscle spasms, peri-oral
  numbness, altered mental status, tetany and
  psychoses
• Treatment options limited
• Lifelong Vitamin D analogues, high Ca diet, Vit
  D2 and Ca supplementation
• Some patients require permanent catheter for IV
  Ca

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PREOS in HypoPTHA Low-Risk, High-Value
Opportunity

• PREOS could be first true PTH replacement therapy
• Chronic administration of native PTH (1-84)
  intuitive
• Low mechanism of action risk
• FDA granted Orphan Drug status in August 2007
• Worldwide annual sales could exceed 200M

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PREOS in HypoPTH Path Forward

• Dr. Bilezikian (Columbia U.) IIT ongoing
• NPS initiating pivotal registration study to
  demonstrate safety and efficacy
• Efficacy endpoints Eucalcemia, reduced
  supplemental calcium and vitamin D analogues
• 75 -100 patients 2 or 3 doses vs. placebo
• 8 to 10-week screening/stabilization
• 24-week dosing
• Study preparation started Expect data 2H 2010
• Total cost estimate 20 to 25M over 3 years

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Calcilytics (ronacaleret)GSK Partnership Update

• Target indication Osteoporosis
• Currently recruiting for Phase 2 dose-range study
  in post-menopausal women
• Efficacy endpoint BMD
• Two active comparators with placebo
• 520 patients
• 12-month dosing
• Study initiated May 2007
• 6 additional clinical studies ongoing

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NPS Financial Strength

• Cash/ST investments over 130M
• Adequate resources to fund late-stage studies
• Liquidity to fund over 2 years burn
• Modest debt 50M convert due 2014 (5.44
  convert price)
• Nycomed partnership expected to reduce GATTEX
  development costs significantly
• Cinacalcet royalties (US/EU) represent over 200M
  additional value

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Cinacalcet Significant Value

• Sensipar
• NPS receives royalties from Amgen on US/EU sales
• Royalties monetized through non-recourse debt
  with estimated repayment in 2012
• Royalties projected to accrue to NPS 2013
• NPV of royalties estimated over 200M or approx.
  4/share
• REGPARA
• NPS receives royalties from Kirin on Far East
  sales
• Approved in Japan Oct. 2007
• Kirin seeking pricing approval for 2008 launch

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Building Value in 2008 Key Milestones

• GATTEX in SBS
• Complete Phase 3-extension study by Q1 2008
• If FDA accepts current package, submit NDA Q3
  2008
• If not, start confirmatory study ASAP
• GATTEX in additional indications
• Complete preclinical studies in NEC and CIGIM
• Initiate at least one FIM study 2H 2008
• PREOS in HypoPTH
• FPFV by 2H 2008
• REGPARA launch in Japan (Kirin)

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The New NPS Delivering Value

• Healthy balance sheet
• Multiple pipeline opportunities focused on unmet
  medical needs
• Strong partnerships with industry leaders
• Commercialized products
• Experienced leadership

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January 2008