NPS Corp Pres

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NPS Pharmaceuticals
Building Momentum
December 2006
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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 to
  (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. December 2006

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NPS Business Update

• Submitted protocol to the FDA for Phase 3b study
  for PREOS
• Nominated an anti-convulsant compound for
  pre-clinical development
• Completed over 95of patient enrollment for the
  teduglutide short bowel syndrome (SBS) trial
• Started a safety and dose-escalation study with
  teduglutide to support future trials
• Expect GSK to initiate a Phase 2b calcilytics
  study for post-menopausal osteoporosis in Q12007

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NPS Operating Principles

• Focus on operational excellence
• Create flexibility by driving revenue, improving
  the capital structure and ensuring prudent
  financial controls
• Build and maintain the momentum required to
  advance the pipeline, drive the value of
  proprietary and partnered products and broaden
  the pipeline

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NPS Portfolio Building for the Future
Osteo PREOS/ PREOTACT
Osteo Calcylitics
HPT Sensipar/ Mimpara
Bone Metabolism
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PREOS An Important Asset to NPS

• Recently submitted a Phase 3b protocol to the FDA
• 12 month bone mineral density
• Timely and cost effective
• Preotact (EU) launched in Germany, the U.K. and
  Denmark
• Anabolic market continues to grow
• 65 growth between 2004 and 2005
• 56 growth between first three quarters of 2005
  and 2006
• PREOS (US) has potential to be a major player in
  the anabolic space

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Teduglutide A First-in-Class Opportunity

• Novel MoA
• Increases intestinal surface area
• Improves fluid and nutrient absorption
• Enhances barrier function
• Heals mucosa
• Significant unmet need
• SBS one approved therapeutic with little market
  acceptance
• Crohns current therapies have serious side
  effects
• Large market opportunity
• SBS TPN costs 100,000-150,000 per year
• Crohns in US 500,000 patients and over 1B in
  sales

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Teduglutide Forward Momentum

• Short Bowel Syndrome
• We have made significant progress in enrolling
  the patients required for the SBS trial
• 95 enrolled enrollment will be complete by
  year-end
• Data for this six-month treatment study available
  in 2H 2007
• NDA filing targeted for 2008
• Crohns Disease
• Completed POC study that showed signal of
  efficacy at the highest dose
• Conducting a safety and dose escalation study to
  support future studies

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NPSP156 Leveraging our Discovery Heritage

• An analog of D-Serine, a nuerotransmitter and
  endogenous ligand at the glycine site of NMDA
  receptors
• Has anti-convulsant properties that are highly
  correlated with plasma levels
• Shown in animal models to relieve neuropathic as
  well as inflammatory pain
• 10 months from project start to pre-clinical
  candidate nomination

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NPSP156 Has Desirable Drug-like Properties
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2005 US Sales AEDs by Indication
Total Market Value 8 billion
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NPS Portfolio Building for the Future
Osteo PREOS/ PREOTACT
HPT Sensipar/ Mimpara
Osteo Calcylitics
Bone Metabolism
Partnered
Proprietary
GI
CNS
Schizophrenia Gly-T1 Multiple CNS mGluRs
GERD mGluRs
Crohns teduglutide
SBS teduglutide
Anti-convulsant NPSP156
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NPS Partnered Programs Balancing Clinical and
Investment Risk
Calcilytics
mGluRs
Glycine Transport Inhibitors
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Calcilytics for Osteoporosis

• Small molecule antagonists of calcium receptors
  cause PTH release
• GSK responsible for development
• Phase 1 proof-of-concept study successful
• 28 day, multiple dose
• Non-osteoporotic, post-menopausal women
• Achieved desired PTH levels and biomarkers of
  bone turnover
• GSK will initate a Phase 2B study in Q12007
• NPS receives royalty and owns co-promotion rights
  for N. America

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mGluRs for CNS and GI Disorders

• Strong ongoing discovery effort with AZ
• 8 distinct receptor subtypes multiple targets
• Compound utility in multiple animal models for
  GERD and CNS disorders
• AZ responsible for development
• Currently in Phase 1
• NPS receives royalty and has co-promotion rights
  in N. America

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Glycine Transport (GlyT1) Inhibitors for
Schizophrenia

• New approach to treatment of schizophrenia
• Elevate levels of glycine and enhance
  glutamatergic neurotransmission
• Glycine transport inhibition believed to be
  effective in decreasing negative (withdrawal)
  symptoms and cognitive behavior deficits
• Partnered with JJ Janssen
• Currently in phase 1 development

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NPS Financial Position

• As of September 30, 2006
• Cash and equivalents 157.8 MM
• Shares Outstanding 46.2 MM
• Financial Guidance for 2006

• Reduce cash burn to 135 - 145 million
• End 2006 with two years of cash 114 - 124
  million

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NPS is Committed to Reducing Operating Expenses
and Cash Burn
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2H06 Guidance and Milestones

• Milestones Already Met
• Initiate full development program for teduglutide
  in Crohns
• Complete higher-dose safety and PK studies
• Identify preclinical candidate for epilepsy
• Milestones We Will Meet by Year End
• Complete enrollment in teduglutide SBS study
• Announce U.S. regulatory strategy for PREOS
• Milestones We Will Meet by Q1 2007
• Advance one or more partnered products into
  later-stage clinical development

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NPS Pharmaceuticals
Building Momentum