SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Amendment No. 3
Under the Securities Exchange Act of 1934
Connetics Corporation
----------------------
(Name of Issuer)
Common Stock
------------
(Title of Class of Securities)
0002078541
----------
(CUSIP Number)
Eileen McCarthy
One Post Office Square, Suite 3800
Boston, MA 02109
(617) 482-8020
-------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
February 1, 2000
-------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box:.
Check the following box if a fee is being paid with this statement:. (A
fee is not required only if the reporting person: (1) has a previous statement
on file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.
(See Rule 13d-7).
Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934, as amended (the "Exchange Act") or otherwise subject to the
liabilities of that section of the Exchange Act but shall be subject to all
other provisions of the Exchange Act.
(Continued on following page(s))
Page 1 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 2 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Alta Partners
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
WC
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
California
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Powe 845,720
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power -0-
(9) Sole Dispositive Power 845,720
(10) Shared Dispositive Power -0-
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
845,720
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
3.14%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
IA
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 2 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 3 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Alta BioPharma Partners, L.P.
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
WC
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
Delaware
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Power 525,688
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power -0-
(9) Sole Dispositive Power 525,688
(10) Shared Dispositive Power -0-
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
525,688
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
1.95%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
PN
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 3 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 4 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Alta Embarcadero BioPharma, LLC
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
WC
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
California
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Powe 19,814
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power -0-
(9) Sole Dispositive Power 19,814
(10) Shared Dispositive Power -0-
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
19,814
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
.07%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
CO
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 4 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 5 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Connetics Partners (Alta Bio), LLC
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
WC
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
Delaware
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Power 300,218
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power -0-
(9) Sole Dispositive Power 300,218
(10) Shared Dispositive Power -0-
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
300,218
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
1.11%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
CO
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 5 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 6 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Alta BioPharma Management, LLC
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
WC
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
Delaware
Number Of Shares (7) Sole Voting Power 525,688
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power -0-
(9) Sole Dispositive Power 525,688
(10) Shared Dispositive Power -0-
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
525,688
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
1.95%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
CO
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 6 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 7 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Alta/Chase BioPharma Management, LLC
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
WC
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
Delaware
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Power 300,218
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power -0-
(9) Sole Dispositive Power 300,218
(10) Shared Dispositive Power -0-
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
300,218
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
1.11%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
CO
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 7 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 8 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Jean Deleage
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
AF
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
U.S.A.
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Power -0-
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power 845,720
(9) Sole Dispositive Power -0-
(10) Shared Dispositive Power 845,720
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
845,720
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
3.14%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
IN
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 8 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 9 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Garrett Gruener
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
AF
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
U.S.A.
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Power -0-
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power 845,720
(9) Sole Dispositive Power -0-
(10) Shared Dispositive Power 845,720
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
845,720
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
3.14%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
IN
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 9 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 10 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Daniel Janney
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
AF
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
U.S.A.
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Power -0-
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power 845,720
(9) Sole Dispositive Power -0-
(10) Shared Dispositive Power 845,720
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
845,720
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
3.14%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
IN
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 10 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 11 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Alix Marduel
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
AF
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
U.S.A.
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Power -0-
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power 845,720
(9) Sole Dispositive Power -0-
(10) Shared Dispositive Power 845,720
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
845,720
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
3.14%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
IN
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 11 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 12 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Guy Nohra
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
AF
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
U.S.A.
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Power -0-
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power 845,720
(9) Sole Dispositive Power -0-
(10) Shared Dispositive Power 845,720
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
845,720
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
3.14%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
IN
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 12 of 18 Pages
<PAGE>
<TABLE>
<CAPTION>
CUSIP No. 0002078541 13D Page 13 of 19 Pages
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
(1) Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons
Marino Polestra
- ---------------------------------------------------------------------------------------------------------
(2) Check The Appropriate Box If A Member Of A Group (a) [ ]
(b) [X]
- ---------------------------------------------------------------------------------------------------------
(3) SEC Use Only
- ---------------------------------------------------------------------------------------------------------
(4) Source Of Funds*
AF
- ---------------------------------------------------------------------------------------------------------
(5) Check Box If Disclosure Of Legal Proceedings Is Required Pursuant To Items 2(d) Or 2(e):
- ---------------------------------------------------------------------------------------------------------
(6) Citizenship Or Place Of Organization
U.S.A.
- ---------------------------------------------------------------------------------------------------------
Number Of Shares (7) Sole Voting Power -0-
Beneficially Owned
By Each Reporting
Person With (8) Shared Voting Power 845,720
(9) Sole Dispositive Power -0-
(10) Shared Dispositive Power 845,720
(11) Aggregate Amount Beneficially Owned By Each Reporting Person
845,720
- ---------------------------------------------------------------------------------------------------------
(12) Check If The Aggregate Amount In Row (11) Excludes Certain Shares*
- ---------------------------------------------------------------------------------------------------------
(13) Percent Of Class Represented By Amount In Row (11)
3.14%
- ---------------------------------------------------------------------------------------------------------
(14) Type Of Reporting Person
IN
- ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTION BEFORE FILLING OUT!
</FN>
</TABLE>
Page 13 of 19 Pages
<PAGE>
Item 1. Security and Issuer.
This Statement on Schedule D relates to the Common Stock,
$0.001 par value per share (the "Shares"), of Connetics Corporation, a Delaware
corporation (the "Company"). The principal executive offices of the Company are
located at 3400 West Bayshore Road, Palo Alto, California 94303.
Item 2. Identity and Background.
(a) This Statement is filed by Alta BioPharma Partners, L.P.,
a Delaware limited partnership ("Alta BioPharma"), and Alta Embarcadero
BioPharma, LLC, a California limited liability company ("Embarcadero LLC"), and
Connetics Partners (Alta Bio), LLC, a Delaware LLC ("Connetics Alta Bio") by
virtue of their direct beneficial ownership of Shares, by Alta BioPharma
Management Partners, LLC, a Delaware limited liability company ("Alta
Management"), by virtue of being the sole general partner of Alta BioPharma, by
Alta/Chase BioPharma Management LLC, a Delaware limited liability company
(Alta/Chase Management) by virtue of being the sole managing director of
Connetics Partners (Alta Bio), LLC and by Alta Partners, a California
corporation ("Alta Partners"), by virtue of being the management advisory
company of these entities. Alta BioPharma, Embarcadero LLC, Connetics Alta Bio,
Alta Management, Alta/Chase Management and Alta Partners are collectively
referred to as the "Reporting Persons." Jean Deleage, Garrett Gruener, Dan
Janney, Alix Marduel, Guy Nohra and Marino Polestra (the "Partners") are the
managing directors of Alta Management, Alta/Chase Management and officers of
Alta Partners. By virtue of the relationships described above and their roles
with Alta Partners, each of the Partners may be deemed to control Alta Partners,
Alta/Chase Management, Alta Management, and, therefore, may be deemed to possess
indirect beneficial ownership of the Shares held by each entity. However, none
of the Partners, acting alone, has voting or investment power with respect to
the Shares directly beneficially held by the entities and, as a result, the
Partners disclaim beneficial ownership of the Shares directly beneficially owned
by each entity, except to the extent of their pecuniary interest in each entity.
Embarcadero LLC is a side company that makes all investments pro rata to the
capital of Alta BioPharma with all allocations made to its members based on
paid-in capital. Certain of the Partners are members of Embarcadero LLC and
certain members of Embarcadero LLC are affiliates of Alta Partners.
(b) The principal executive offices of Alta BioPharma,
Embarcadero LLC, Connetics Alta Bio, Alta Management, Alta/Chase Management and
Alta Partners, and the business address of each Partner, are located at One
Embarcadero Center, Suite 4050, San Francisco, California 94111.
(c) Alta Partners provides investment advisory services to
venture capital firms. Alta BioPharma, Connetics Alta Bio and Embarcadero LLC's
principal business is acting as venture capital investment vehicles. Alta/Chase
Management and Alta Management's principal business is acting as managing
director of Connetics Alta Bio and Alta BioPharma, respectively. Each of the
Partners' principal business is acting as a managing director of Alta Management
and Alta/Chase Management and as an officer of Alta Partners.
(d) None of the Reporting Persons or, to the knowledge of the
Reporting Persons, any of the Partners, has been convicted in a criminal
proceeding in the past five years (excluding traffic violations or similar
misdemeanors).
(e) During the past five years, none of the Reporting Persons
or, to the knowledge of the Reporting Persons, and none of the Partners, was a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction as a result of which such person was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws of finding any
violation with respect to such laws.
Page 14 of 19 Pages
<PAGE>
(f) Alta Partners is a California corporation. Alta BioPharma
is a Delaware limited partnership. Embarcadero LLC is a Delaware limited
liability corporation. Connetics Alta Bio is a Delaware limited liability
company. Alta Management and Alta/Chase Management are Delaware limited
liability companies. Each of the Partners is a citizen of the United States.
Item 3. Source and Amount of Funds or Other Consideration.
Not applicable.
Item 4. Purpose of Transaction.
Alta BioPharma, Embarcadero LLC, and Connetics Alta Bio
acquired the Common Stock reported in Item 5(c) for investment only. Depending
upon their evaluation of the Company's investments and prospects, and upon
future developments (including, but not limited to, market for the Shares, the
effective yield on the Shares, availability of funds, alternative uses of funds,
and money, stock market and general economic conditions), each of the Reporting
Persons may from time to time purchase the Common Stock, dispose of all or a
portion of the Common Stock that it holds, or cease buying or selling Common
Stock. Any such additional purchases or sales of the Common Stock may be in open
market or privately-negotiated transactions or otherwise.
On April 10, 1998, Alta BioPharma, Embarcadero LLC and
Connetics Alta Bio entered into a Common Stock Purchase Agreement (the "Common
Stock Purchase Agreement") with the Company pursuant to which Alta BioPharma,
Embarcadero LLC and Connetics Alta Bio acquired, for an aggregate purchase price
of $10,000,003.88, a total of 2,162,163 Shares of Common Stock. The entities
also entered into a Registration Rights Agreement. On May 18, 1998, Alta
BioPharma, Embarcadero LLC and Connetics Alta Bio acquired, for an aggregate
purchase price of $578,125, a total of 125,000 Shares of Common Stock . On
November 23, 1998, Alta BioPharma, Embarcadero LLC and Connetics Alta Bio
acquired, for an aggregate purchase price of $1,000,000, a total of 250,000
Shares of Common Stock. The entities also entered into a Registration Rights
Agreement.
On February 1, 2000, Alta BioPharma, Embarcadero LLC and
Connetics Alta Bio made in-kind distributions of 1,051,377, 39,629 and 600,437
shares of Common Stock, respectively, to their limited partners or members
without consideration pursuant to the terms of their respective limited
partnership or operating agreements.
Item 5. Interest in Securities of the Issuer.
(a) Alta BioPharma is the direct beneficial owner of 525,688
shares of Common Stock or approximately 1.95% of the shares deemed outstanding
by the Company (26,950,424) as of December 31, 1999. Connetics Alta Bio is the
direct beneficial owner of 300,218 shares of Common Stock or approximately 1.11%
of the shares deemed outstanding by the Company (26,950,424) as of December 31,
1999. Embarcadero LLC is the direct beneficial owner of 19,814 shares of Common
Stock or approximately .07% of the shares deemed outstanding by the Company
(26,950,424) as of December 31, 1999.
(b) Each entity has the power to direct the disposition of and
vote the stock held by it. By virtue of the relationships previously reported
under Item 2 of this Statement, Alta Management, Alta/Chase Management and Alta
Partners may be deemed to have indirect beneficial ownership of the shares owned
by such entities.
(c) On April 10, 1998 Alta BioPharma, Connetics Alta Bio, and
Embarcadero LLC acquired the Shares described in Item 3 of this Statement in a
privately negotiated transaction with the Company for aggregate consideration of
$6,325,668, $3,446,846 and $227,489.88, respectively.
Page 15 of 19 Pages
<PAGE>
On May 18, 1998 Alta BioPharma, Connetics Alta Bio,
and Embarcadero LLC acquired an additional 53,956, 66,645 and 4,399 Shares,
respectively, in a privately negotiated transaction with certain shareholders of
the Company for aggregate consideration of $249,546.50, $308,233.12 and
$20,345.38, respectively.
On November 23, 1998 Alta BioPharma, Connetics Alta
Bio, and Embarcadero LLC acquired an additional 155,397, 88,746 and 5,857
Shares, respectively, in a privately negotiated transaction with certain
shareholders of the Company for aggregate consideration of $621,588, $354,984
and $23,428, respectively.
On February 1, 2000, Alta BioPharma made an in-kind
distribution of 1,051,377 shares of Common Stock to its limited partners without
consideration pursuant to the terms of its limited partnership agreement. On
February 1, 2000, Embarcadero LLC made an in-kind distribution of 39,629 shares
of Common Stock to its members without consideration pursuant to the terms of
its operating agreement. On February 1, 2000, Connetics Alta Bio made an in-kind
distribution of 600,437 shares of Common Stock to its members without
consideration pursuant to the terms of its operating agreement.
Except as set forth above, neither the Reporting
Persons nor the Partners have effected any transaction in the Shares during the
past 60 days.
(d) Alta BioPharma, Connetics Alta Bio and Embarcadero LLC
each have the right to receive dividends and proceeds from the sale of Common
Stock held by it. By virtue of the relationships reported in Item 2 of this
Statement, Alta Management, Alta/Chase Management and Alta Partners may be
deemed to have the power to direct the receipt of dividends and the proceeds
from the sale of the Common Stock held by each entity.
(e) On February 1, 2000, Reporting Persons ceased to be the
beneficial owners of more than five percent of the class of securities reported
herein.
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer.
The Connetics Corporation Common Stock Purchase Agreement
dated April 10, 1998 and The Connetics Corporation Registration Rights Agreement
dated April 10, 1998 are hereby incorporated in their entirety by this
reference.
Item 7. Material to be Filed as Exhibits.
Exhibit A: Joint Filing Statement.
Exhibit B: Connetics Corporation Common Stock Purchase
Agreement dated April 10, 1998, as previously submitted with
the Schedule D filed April 20, 1998 and incorporated herein by
reference.
Exhibit C: Connetics Corporation Registration Rights Agreement
dated April 10, 1998, as previously submitted with the
Schedule D filed April 20, 1998 and incorporated herein by
reference.
Exhibit D: Alta BioPharma Partners Limited Partnership
Management Rights Agreement dated April 10, 1998, as
previously submitted with the Schedule D filed April 20, 1998
and incorporated herein by reference.
Page 16 of 19 Pages
<PAGE>
Exhibit E: Form of Connetics Corporation Registration Rights
Agreement dated November 20, 1998 and incorporated herein by
reference.
Page 17 of 19 Pages
<PAGE>
<TABLE>
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
<CAPTION>
Date: February 10, 2000
<S> <C> <C>
Alta Partners Alta BioPharma Partners, L.P.
By: /s/ /Eileen McCarthy By: Alta BioPharma Management, LLC
-------------------------------------------- Its General Partner
Eileen McCarthy, Vice President
Alta BioPharma Management, LLC By: /s/ Eileen McCarthy
------------------------------------
Eileen McCarthy, Member
By: /s/ Eileen McCarthy Connetics Partners (Alta Bio), LLC
--------------------------------------------
Eileen McCarthy, Member
By: Alta/Chase BioPharma Management, LLC
Alta/Chase BioPharma Management, LLC Its Managing Member
By: /s/ Eileen McCarthy By: /s/ Eileen McCarthy
-------------------------------------------- ------------------------------------
Eileen McCarthy, Member Eileen McCarthy, Member
Alta Embarcadero BioPharma, LLC
By: /s/ Eileen McCarthy
Eileen McCarthy, Member
/s/ Jean Deleage /s/ Guy Nohra
- -------------------------------------------- ---------------------------------------------
Jean Deleage Guy Nohra
/s/ /Garrett Gruener /s/ Marino Polestra
- -------------------------------------------- ---------------------------------------------
Garrett Gruener Marino Polestra
/s/ Daniel Janney /s/ Alix Marduel
- -------------------------------------------- ---------------------------------------------
Daniel Janney Alix Marduel
</TABLE>
Page 18 of 19 Pages
<PAGE>
EXHIBIT A
Joint Filing Statement
<TABLE>
We, the undersigned, hereby express our agreement that the attached
Schedule 13D is filed on behalf of each of us.
<CAPTION>
Date: February 10, 2000
<S> <C>
Alta Partners Alta BioPharma Partners, L.P.
By: /s/ /Eileen McCarthy By: Alta BioPharma Management, LLC
-------------------------------------------- Its General Partner
Eileen McCarthy, Vice President
Alta BioPharma Management, LLC By: /s/ Eileen McCarthy
------------------------------------
Eileen McCarthy, Member
By: /s/ Eileen McCarthy Connetics Partners (Alta Bio), LLC
--------------------------------------------
Eileen McCarthy, Member
By: Alta/Chase BioPharma Management, LLC
Alta/Chase BioPharma Management, LLC Its Managing Member
By: /s/ Eileen McCarthy By: /s/ Eileen McCarthy
-------------------------------------------- ------------------------------------
Eileen McCarthy, Member Eileen McCarthy, Member
Alta Embarcadero BioPharma, LLC
By: /s/ Eileen McCarthy
-------------------------------------------
Eileen McCarthy, Member
/s/ Jean Deleage /s/ Guy Nohra
- -------------------------------------------- ---------------------------------------------
Jean Deleage Guy Nohra
/s/ /Garrett Gruener /s/ Marino Polestra
- -------------------------------------------- ---------------------------------------------
Garrett Gruener Marino Polestra
/s/ Daniel Janney /s/ Alix Marduel
- -------------------------------------------- ---------------------------------------------
Daniel Janney Alix Marduel
</TABLE>
Page 19 of 19 Pages
