<PAGE> 1
Prospectus Supplement No. 1 Filed Pursuant to Rule 424(b)(3)
to Prospectus dated January 4, 1999 Registration No. 333-69055
CONNETICS CORPORATION
PROSPECTUS SUPPLEMENT NO. 1 DATED AUGUST 23, 2000
TO PROSPECTUS DATED JANUARY 4, 1999
RELATING TO 3,572,548 SHARES OF COMMON STOCK
This prospectus supplement supplements the information contained in the
prospectus of Connetics Corporation dated January 4, 1999. This prospectus
supplement is not complete without, and may not be delivered or utilized except
in connection with, the prospectus dated January 4, 1999.
The following table supplements the information contained in the prospectus
under the caption "Selling Stockholders." The following table (1) revises the
number of shares of our common stock offered by Domain Partners under the
prospectus to reflect the distribution of shares held by Domain Partners IV,
L.P. to its partners, (2) adds the partners of Domain Partners IV, L.P. who
received shares in such distribution as selling stockholders in the selling
stockholder table in the prospectus, and (3) amends footnote 3 to the selling
stockholder table in the prospectus to delete the reference to the 1,220,747
shares held by Domain Partners IV, L.P.
<TABLE>
<CAPTION>
SHARES BENEFICIALLY OWNED
AFTER OFFERING(1)(2)
SHARES OFFERED -------------------------
NAME OF SELLING STOCKHOLDER HEREBY NUMBER PERCENT
--------------------------- -------------- ------ -------
<S> <C> <C> <C>
REVISE:
Domain Partners(3) 279,253 105,479 *
ADD:
Leeway & Company 62,958 0 --
The Northern Trust Company as Trustee for the
Lucent Technologies Inc. Master Pension Trust 99,665 0 --
The Chase Manhattan Bank, as Trustee for First
Plaza Group Trust 116,161 0 --
HarbourVest Partners V-Partnership Fund L.P. 79,652 0 --
The Mohawk River Fund L.P. 69,696 0 --
Mellon Bank, N.A. as Trustee for the
Bell Atlantic Master Trust 69,696 0 --
The Ford Foundation 69,696 0 --
The Board of Trustees of the Leland Stanford
Junior University 46,464 0 --
Boston Safe Deposit & Trust Company, as Trustee
for the SBC Master Pension Trust 46,464 0 --
The Church Pension Fund 46,464 75,300 *
</TABLE>
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<TABLE>
<CAPTION>
SHARES BENEFICIALLY OWNED
AFTER OFFERING(1)(2)
SHARES OFFERED -------------------------
NAME OF SELLING STOCKHOLDER HEREBY NUMBER PERCENT
--------------------------- -------------- ------ -------
<S> <C> <C> <C>
Nassau Capital Funds, L.P. 46,464 0 --
Gothic Corporation 37,171 0 --
University of Notre Dame du lac 37,171 0 --
Endowment Venture Partners III, L.P. 34,848 0 --
University of Southern California 32,525 0 --
Sofinov Societe Financiere D'Innovation Inc. 27,879 0 --
Knightsbridge Venture Capital IV, L.P. 13,940 0 --
California Institute of Technology 13,940 0 --
Trustees of Boston University 13,940 0 --
Robert M. & Janice G. Davidson 13,940 0 --
Lawrence F. DeGeorge 13,940 0 --
Genentech, Inc.(4) 13,940 704,742 2.4%
HarbourVest Partners V - Parallel Partnership
Fund L.P. 13,275 0 --
American Bible Society 9,293 0 --
Employees' Retirement Plan of Duke University 9,293 0 --
Mitsui & Co. (USA), Inc. 9,293 0 --
Crossroads 1997 Asset Allocation II, L.P. 6,970 0 --
Crossroads 1997 Venture Capital Programme I, L.P. 6,970 0 --
Alexandria Real Estate Equities, L.P. 5,344 0 --
Knightsbridge Netherlands II L.P. 4,646 0 --
Crossroads 1997 Asset Allocation I, L.P. 4,646 0 --
Crossroads 1997 Venture Capital I, L.P. 4,646 0 --
One Palmer Square Associates IV, L.L.C.(5) 139,757 0 --
</TABLE>
-------------
* Less than 1%.
(1) Beneficial ownership is calculated based on 29,530,672 shares of our common
stock outstanding as of July 31, 2000. Beneficial ownership is determined
in accordance with the rules and regulations of the Securities and Exchange
Commission and generally includes the voting and investment power with
respect to the securities. Unless otherwise indicated, and subject to
applicable community property laws, to the best of our knowledge, the
persons named in this table have sole voting and investing power with
respect to all shares of common stock held by them. Shares issuable upon
the exercise of options that are exercisable or become exercisable within
60 days of July 31, 2000 are considered outstanding for the purpose of
computing percentage ownership of that person, but are not treated as
outstanding for the purpose of computing any other person's ownership
percentage.
(2) Assumes the sale of all shares of common stock offered hereby and no other
purchases or sales of our common stock. If shares offered hereby are not
sold, actual share ownership will be higher than this table reflects.
(3) Shares beneficially owned after the offering includes 66,107 warrants owned
by Domain Partners III, L.P., DP III Associates, L.P., Domain Partners IV,
L.P. and DP IV Associates, L.P., as well as 39,372 options to purchase
shares of common stock which are currently exercisable or will become
exercisable within 60 days of July 31, 2000 by Mr. Brian H. Dovey, a
director of Connectics Corporation, who is a managing member of Domain
Associates, L.L.C.
(4) Genentech, Inc. offered 380,048 shares of our common stock pursuant to the
prospectus dated January 4, 1999. The 13,940 shares offered by Genentech as
set forth in this prospectus supplement are in addition to the 380,048
shares originally offered by Genentech.
(5) Mr. Brian H. Dovey, a director of Connetics Corporation, is a managing
member of One Palmer Square Associates IV, L.L.C.
<PAGE> 3
Footnote 3 to the selling stockholder table in the prospectus is hereby
amended to read as follows:
"(3) Shares offered hereby consist of 241,640 shares offered by Domain Partners
III L.P., 8,360 shares offered by DP III Associates L.P. and 29,253 shares
offered by DP IV Associates L.P."
THE DATE OF THIS PROSPECTUS SUPPLEMENT IS AUGUST 23, 2000
