On March 25, 2009, the United States District Court for the District of Utah, Central Division (the "Court") granted preliminary approval of a Stipulation of Settlement entered into by and among (i) the derivative plaintiffs in In re NPS Pharmaceuticals, Inc. Derivative Litigation, United States District Court for the District of Utah (Central Division), Case No. 2:07-cv-00611-DAK (the "Federal Action"), and Deane v. Tombros, et al., Third Judicial District, Salt Lake County, Utah, Case No. 060913838 MI (the "State Action," together with the Federal Action, the "Actions"); (ii) certain current and former officers and directors of NPS Pharmaceuticals, Inc. (the "Company") who are named defendants in one or more of the Actions; and (iii) the Company, the nominal defendant in the Actions. The proposed settlement of the Actions, as set forth in the Stipulation of Settlement, was previously disclosed in the Company's Form 10-K for the year ended December 31, 2008, filed with the U.S. Securities and Exchange Commission on March 16, 2009.

The proposed settlement is subject to final Court approval. The Court has set a final settlement hearing for May 13, 2009 at 3:00 p.m. to determine (i) whether the dismissal of the Actions pursuant to the proposed settlement should be approved by the Court, (ii) whether a final judgment should be entered in the Actions, (iii) whether the application of plaintiffs' counsel for an award of attorneys' fees and reimbursement of expenses should be granted, and (iv) such other matters as may be necessary or proper in the circumstances. The Company is required to provide a detailed notice to shareholders of the terms of the proposed settlement and the rights of shareholders with respect to the proposed settlement. The required notice is attached hereto as Exhibit 99.1 and incorporated herein by reference.

(d) Exhibits

Exhibit No.                                 Description
   99.1       Notice of Proposed Settlement of Derivative Actions, Hearing Thereon
              and Right to Appear.