<PAGE>
As filed with the Securities and Exchange Commission on August 12, 1996
Registration No. 333-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
-------------------
ALZA CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 77-0142070
(State or other jurisdiction of (I.R.S. employer identification
incorporation or organization) number)
950 PAGE MILL ROAD, P.O. BOX 10950, PALO ALTO, CALIFORNIA 94303-0802
(415) 494-5000
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
BRUCE C. COZADD
VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
ALZA CORPORATION
950 PAGE MILL ROAD, P.O. BOX 10950
PALO ALTO, CALIFORNIA 94303-0802
(415) 494-5000
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
with copies of all orders, notices and communications to:
SARAH A. O'DOWD
HELLER EHRMAN WHITE & MCAULIFFE
525 UNIVERSITY AVENUE
PALO ALTO, CALIFORNIA 94301
(415) 324-7000
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:
As soon as practicable after the effective date of this Registration Statement.
-------------------------------
If the only securities being registered on this Form are being offered
pursuant to dividend or interest investment plans, please check the following
box. / /
If any of the securities being registered on this Form are being offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, as amended, other than securities offered only in connection with dividend
or interest reinvestment plans, check the following box. /X/
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act of 1933, as amended, check the
following box and list the Securities Act Registration number of the earlier
effective registration statement for the same offering. / / ________________
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act of 1933 as amended, check the following box and list
the Securities Act of 1933, as amended, registration number of the earlier
effective registration statement for the same offering. / / ________________
<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE
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Proposed Proposed
Amount Maximum Maximum
Title of Class of to be Aggregate Price Aggregate Amount of
Securities to be Registered Registered Per Share (1) Offering Price(1) Registration Fee
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Stock, par value
$.01 per share 1,000,000 $25.375 $25,375,000 $8,750.00
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</TABLE>
(1) Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457 under the Securities Act of 1933, as amended.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING
PURSUANT TO SAID SECTION 8(a), MAY DETERMINE.
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<PAGE>
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES
IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
SUBJECT TO COMPLETION
PRELIMINARY PROSPECTUS DATED AUGUST 12, 1996
PROSPECTUS
1,000,000 SHARES
ALZA CORPORATION
------------------
The 1,000,000 shares (the "Shares") of Common Stock, $.01 par value (the
"Common Stock"), of ALZA Corporation ("ALZA") covered by this prospectus (the
"Prospectus") are being offered by the holder of the Shares (the "Selling
Stockholder") named in the Prospectus. The Shares offered by the Selling
Stockholder were acquired by the Selling Stockholder upon exercise of warrants
to purchase ALZA Common Stock (the "Warrants"). The Warrants were issued in
1991 and were purchased from the original holder of the Warrants by the Selling
Stockholder on the open market.
Some or all of the Shares covered by this Prospectus may be offered for
sale from time to time by the Selling Stockholder at such prices and on such
terms as may then be obtainable, in negotiated transactions or otherwise. This
Prospectus may be used by the Selling Stockholder or by any broker-dealer who
may participate in the sale of the Shares covered hereby. The Selling
Stockholder will pay all commissions, transfer taxes and other expenses
associated with the sale of the Shares by the Selling Stockholder and the
expenses of the preparation of this Prospectus. ALZA has agreed to indemnify
the Selling Stockholder against certain liabilities, including liabilities
arising under the Securities Act of 1933, as amended (the "Securities Act").
Upon exercise of the Warrants, ALZA received proceeds totalling $25 million.
ALZA will not receive any of the proceeds from the sale of the Shares by the
Selling Stockholder.
ALZA's Common Stock is listed on the New York Stock Exchange ("NYSE") under
the symbol "AZA". On August 9, 1996, the closing price of the Common Stock as
reported on the NYSE was $25.25 per share.
SEE "RISK FACTORS" ON PAGE 5 FOR A DISCUSSION OF CERTAIN FACTORS WHICH
SHOULD BE CAREFULLY CONSIDERED BY PROSPECTIVE PURCHASERS OF THE SHARES OFFERED
HEREBY.
----------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION
OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
AVAILABLE INFORMATION
ALZA is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance
therewith files reports, proxy statements and other information with the
Securities and Exchange Commission (the "Commission"). Such reports, proxy
statements and other information may be inspected at the public reference
facilities of the Commission at Judiciary Plaza, 450 Fifth Street, N.W.,
Washington, DC 20549. Copies of such material can be obtained at prescribed
rates from the Commission at such address. Such reports, proxy statements and
other information can also be inspected at the Commission's regional offices at
7 World Trade Center, 13th Floor, New York, New York 10019 and at 500 West
Madison Street, Suite 1400, Chicago, Illinois 60661. In addition, such reports,
proxy statements and other information concerning ALZA may be inspected at the
offices of the New York Stock Exchange at 20 Broad Street, New York, New York
10005.
ALZA has filed with the Commission a Registration Statement on Form S-3
under the Securities Act with respect to the Shares offered by this Prospectus.
As permitted by the rules and regulations of the Commission, this Prospectus
does not contain all of the information set forth in the Registration Statement
and the exhibits and schedules thereto. For further information with respect to
ALZA and the securities offered hereby, reference is made to the Registration
Statement and the exhibits thereto, which may be examined without charge at the
public reference facilities maintained by the Commission at Judiciary Plaza,
450 Fifth Street, N.W., Washington, DC 20549, and copies of which may be
obtained from the Commission upon payment of the prescribed fees.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents, which have been filed by ALZA with the Commission,
are hereby incorporated by reference in this Prospectus:
(a) ALZA's Annual Report on Form 10-K for the fiscal year ended
December 31, 1995;
(b) ALZA's Quarterly Report on Form 10-Q for the quarter ended
March 31, 1996; and
(c) The description of the Common Stock contained in ALZA's
registration statement on Form 8-A filed May 14, 1992 under the
Exchange Act, including any amendment or reports filed for the
purpose of updating such description.
All documents filed by ALZA pursuant to Section 13(a), 13(c), 14 or 15(d)
of the Exchange Act subsequent to the date of this Prospectus and prior to the
termination of the offering of the securities offered hereby shall be deemed to
be incorporated by reference into this Prospectus and to be a part hereof from
the respective dates of filing of such documents. Any statement contained in a
document incorporated or deemed to be incorporated by reference herein shall be
deemed to be modified or superseded for purposes of this Prospectus to the
extent that a statement contained herein, or in any other subsequently filed
document that also is or is deemed to be incorporated by reference herein,
modifies or supersedes such statement. Any such statement so modified or
superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Prospectus.
Upon written or oral request directed to Corporate and Investor Relations,
ALZA Corporation, 950 Page Mill Road, P.O. Box 10950, Palo Alto, California
94303-0802, telephone (415) 494-5222, ALZA will provide, without charge, to any
person to whom this Prospectus is delivered, a copy of any document incorporated
by reference in this Prospectus (not including exhibits to any such document
except to the extent any such exhibits are specifically incorporated by
reference in the information incorporated in this Prospectus).
<PAGE>
PROSPECTUS SUMMARY
STATEMENTS MADE IN THIS PROSPECTUS RELATING TO PRODUCT DEVELOPMENT,
MANUFACTURING AND MARKETING, OR THAT OTHERWISE RELATE TO FUTURE PERIODS, ARE
FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES
ACT AND SECTION 21E OF THE EXCHANGE ACT. ACTUAL RESULTS COULD DIFFER MATERIALLY
FROM THOSE ANTICIPATED IN THE FORWARD-LOOKING STATEMENTS AS A RESULT OF CERTAIN
RISKS DESCRIBED IN THIS PROSPECTUS (INCLUDING ALZA'S ANNUAL REPORT ON FORM 10-K
FOR 1995 AND OTHER DOCUMENTS INCORPORATED HEREIN BY REFERENCE).
ALZA
ALZA is a leader in the development and commercialization of innovative
pharmaceutical products that incorporate drugs into advanced dosage forms
designed to provide controlled, predetermined rates of drug release for extended
time periods. By administering drugs in preset patterns and by alternative
routes, ALZA's advanced dosage forms, called therapeutic systems, can add
medical and economic value to drug therapies by minimizing their unpleasant or
harmful side effects, optimizing their beneficial actions, simplifying drug
therapy, and increasing patient compliance by decreasing the frequency with
which medication must be administered.
Historically, most of ALZA's product development activities have been
undertaken pursuant to joint development and commercialization agreements with
pharmaceutical companies. These agreements normally provide for the
pharmaceutical company client to reimburse ALZA for costs incurred in product
development and clinical evaluation of a specified product, including a portion
of general and administrative expenses. The client receives marketing rights to
the product and ALZA receives royalties on the client's sales of the product.
Generally ALZA manufactures all or a portion of the client's requirements of the
product. Among the ALZA-developed products commercialized to date by client
companies are Procardia XL-Registered Trademark- (nifedipine) extended release
tablets for the treatment of angina and hypertension, Duragesic-Registered
Trademark- (fentanyl transdermal system) CII for the management of chronic pain
in patients who require continuous opioid analgesia for pain that cannot be
managed by lesser means, Transderm-Nitro-Registered Trademark- (nitroglycerin
transdermal system), a once-daily product for the prevention of angina pectoris
due to coronary artery disease, and Nicoderm-Registered Trademark- (nicotine
transdermal system), an aid in smoking cessation for relief of nicotine
withdrawal symptoms.
The United States health care industry has changed dramatically in the last
several years. Pharmaceutical companies have reduced sales forces, acquired
pharmacy benefit companies, and built alliances in an effort to cut costs,
secure market share, and improve research and development productivity. In this
environment, every new pharmaceutical product must add value to the health care
marketplace. These changes have created a unique opportunity for ALZA.
Beginning in the early 1990s and accelerating over the past several years,
ALZA has embarked on a three-part strategy to capitalize on the opportunities
created by the new health care marketplace. First, ALZA has continued its
traditional product development arrangements with client companies.
Second, ALZA has expanded its commercialization capabilities and activities
through its ALZA Pharmaceuticals division. In 1994, ALZA Pharmaceuticals
introduced in the United States the Testoderm-Registered Trademark-
(testosterone transdermal system) CIII for hormone replacement therapy in males
for conditions associated with a deficiency or absence of endogenous
testosterone. Also during 1994, ALZA's sales force began to co-promote in the
United States two products developed by ALZA under agreements with client
companies -- Duragesic-Registered Trademark- with Janssen Pharmaceutica, Inc.
("Janssen"), and Glucotrol XL-Registered Trademark- (glipizide) with Pfizer Inc.
("Pfizer"). In April 1996, ALZA Pharmaceuticals launched in the United States
Ethyol-Registered Trademark- (amifostine), a unique agent developed by U.S.
Bioscience, Inc. ("USB"), indicated for the reduction of cumulative renal
toxicity associated with repeated administration of the chemotherapeutic drug
cisplatin in patients with advanced ovarian cancer or advanced non-small cell
lung cancer. ALZA has exclusive rights to market the product for five years,
with an option to extend for one additional year; USB co-promotes the product
with ALZA. In April 1996, ALZA also began promoting Mycelex-Registered
Trademark- (clotrimazole ) Troche, an antifungal agent for the treatment of oral
thrush, under a three year agreement with Bayer Corporation under which ALZA
will receive payments based on net sales of the product above a specified
base level. Beginning July 1, 1996, under an agreement with USB, ALZA began
to co-promote with USB in the United States two USB products --
Hexalen-Registered Trademark- (altretamine), a product used in the treatment
of advanced ovarian cancer, and NeuTrexin-Registered Trademark-
(trimetrexate glucuronate), an alternate therapy for the treatment of
moderate-to-severe PNEUMOCYSTIS CARINII pneumonia. Sales of
Hexalen-Registered Trademark- and NeuTrexin-Registered Trademark- will be
recorded by USB and ALZA will receive payments based on net sales of the
products. The term of the
3
<PAGE>
co-promotion is up to five years and ALZA will receive residual payments after
that period. As part of its strategy to expand its commercialization
activities, and in order to decrease ALZA's dependence on client companies, ALZA
formed Therapeutic Discovery Corporation ("TDC") in 1993 to develop, with ALZA,
a pipeline of products for commercialization by ALZA. ALZA and TDC currently
are developing a range of products which are in various stages of development,
including a number in Phase III clinical evaluation. There can be no assurance
that any of these products will be successfully developed, or if successfully
developed, that they can be successfully commercialized.
Third, in order to extend ALZA's leadership in drug delivery technology,
ALZA formed the ALZA Technology Institute ("ATI") in 1994. ATI is increasing
ALZA's investment in the research and development of therapeutic systems,
including systems for the delivery of biotechnology compounds and for use in
gene therapy.
In April 1996, ALZA completed a $500 million public offering of 5%
convertible subordinated debentures due 2006 (the "Debentures"), which
resulted in approximately $489 million of net proceeds to ALZA. Each Debenture
is convertible, at the option of the holder, at any time prior to maturity,
unless previously redeemed or repurchased, into shares of ALZA Common Stock at a
conversion price of $38.19 per share, subject to certain anti-dilution
adjustments. ALZA intends to use the proceeds of the Debentures offering for
general corporate purposes, which may include expansion of ALZA's pharmaceutical
business (including its sales and marketing activities), expansion of its
research and development and manufacturing facilities, expenditures under
existing or future joint ventures, partnerships or other similar agreements, the
completion or continuation of the development of TDC products if ALZA exercises
its right to license any or all of the TDC products or its purchase option with
respect to TDC, the acquisition of assets, technologies, products and businesses
to expand ALZA's operations, and working capital.
ALZA's principal executive offices are located at 950 Page Mill Road, P.O.
Box 10950, Palo Alto, California 94303-0802 and its telephone number is (415)
494-5000.
4
<PAGE>
RISK FACTORS
Statements made in this Prospectus relating to product development,
manufacturing and marketing, or that otherwise relate to future periods, are
forward-looking statements within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act. Actual results could differ materially
from those anticipated in the forward-looking statements as a result of certain
risks described below or elsewhere in this Prospectus (including ALZA's Annual
Report on Form 10-K for 1995 and other documents incorporated herein by
reference). Such risks should be considered carefully in evaluating the Shares
and ALZA before purchasing the Shares offered hereby.
DEPENDENCE ON RELATIONSHIPS WITH CLIENT COMPANIES. ALZA's net income
currently results primarily from royalties and fees paid by client companies.
Royalties and fees are derived from sales by the clients of products
incorporating ALZA technologies, and therefore vary from quarter to quarter as a
result of changing levels of product sales by client companies. Because ALZA's
clients make all marketing and other commercialization decisions with respect to
such products (including, in many cases, taking responsibility for obtaining
necessary regulatory approvals), most of the variables that affect ALZA's
royalties and fees are not directly within ALZA's control. In addition, ALZA's
royalties and fees could be adversely affected by competition and pressures for
cost containment. For the year ended December 31, 1995, Procardia XL-Registered
Trademark- (nifedipine), marketed by Pfizer, accounted for more than 40% of
ALZA's royalties and fees. Sales of Procardia XL-Registered Trademark- have
been declining since 1995 and decreased by 19% during the second quarter of 1996
compared to the same period in 1995, as reported by Pfizer.
UNCERTAINTIES RELATING TO RECENT AND PLANNED EXPANSION OF MARKETING AND
MANUFACTURING ACTIVITIES. ALZA has recently expanded its commercialization
activities. ALZA began marketing the Testoderm-Registered Trademark-
(testosterone transdermal system) CIII in 1994, and is co-promoting
Duragesic-Registered Trademark- (fentanyl transdermal system) CII with Janssen
and Glucotrol XL-Registered Trademark- (glipizide) with Pfizer. ALZA has also
recently launched Ethyol-Registered Trademark- (amifostine), began promoting
Mycelex-Registered Trademark- (clotrimazole) Troche and began co-promoting
Hexalen-Registered Trademark- (altretamine) and NeuTrexin-Registered Trademark-
(trimetrexate glucuronate). ALZA intends to expand its commercialization
activities as a result of its arrangements with TDC, and under additional
arrangements with third parties (which could include the acquisition or license
of products and/or technologies). While the activities with TDC and other third
parties are intended to result in a valuable pipeline of products for marketing
by ALZA, there can be no assurance that this will be the case, nor can there be
any assurance generally that ALZA's commercialization activities will be
successful. ALZA also has expanded and is continuing to expand its
manufacturing facilities in anticipation of future manufacturing needs.
Utilization of these facilities in any quarter depends on many factors,
including client orders, product approvals, product launches and sales levels,
most of which are outside of ALZA's control. There can be no assurance that
ALZA's manufacturing activities will be profitable.
VOLATILITY OF SECURITIES PRICES. The market prices of ALZA's securities
are subject to significant fluctuations in response to variations in quarterly
operating results, announcements of new commercial products by ALZA or its
competitors, developments or disputes concerning patent or proprietary rights,
regulatory developments in both the U.S. and foreign countries, health care
reform and regulation, and economic and other external factors. In addition, the
pharmaceutical sector of the stock market has in recent years experienced
significant price fluctuations. Such fluctuations, as well as economic
conditions generally, may adversely affect the market price of ALZA's
securities, including its Common Stock.
UNCERTAINTIES CONCERNING EFFECTS OF CHANGES IN U.S. HEALTH CARE MARKET.
The U.S. health care industry has continued to change rapidly as the public,
government, medical practitioners and the pharmaceutical industry focus on ways
to expand medical coverage while controlling the growth in health care costs.
Legislative changes continue to be proposed, many of which, if enacted, could
put significant pressures on the prices charged for pharmaceutical products.
Similarly, prescription drug reimbursement practices and the growth of large
managed care organizations, as well as generic and therapeutic substitution
(substitution of a different product for the same indication), could
significantly affect ALZA's business.
ARRANGEMENTS POTENTIALLY INHIBITING A CHANGE IN CONTROL OF ALZA. Certain
provisions of ALZA's Certificate of Incorporation, the Liquid Yield Option Notes
due 2014 ("LYONs") and the Debentures may inhibit a change in control of ALZA.
The provisions of ALZA's Certificate of Incorporation granting the Board of
Directors the authority to issue shares of Preferred Stock with such terms as
the Board of Directors may determine, classifying ALZA's Board of Directors,
preventing stockholders from calling special meetings of ALZA's stockholders and
requiring supermajority votes in the event of certain proposed business
combinations may inhibit any change in control of ALZA. Provisions
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<PAGE>
in the Debentures and the outstanding LYONs grant the holders of these
securities the right to require ALZA to repurchase all or any part of the
Debentures and the LYONs in the event of a change in control, which may also
inhibit any change in control of ALZA.
6
<PAGE>
USE OF PROCEEDS
ALZA will not receive any proceeds from the sale of the Shares by the
Selling Stockholder.
PLAN OF DISTRIBUTION
All or a portion of the Shares of Common Stock offered hereby by the
Selling Stockholder may be delivered and/or sold in transactions from time to
time on the NYSE at prices and at terms prevailing at the time, at prices and at
terms related to such prevailing prices or at negotiated prices and terms and/or
may also be used in connection with hedging transactions with broker-dealers or
to engage in short sales to cover any short positions previously established.
The Shares may be sold by one or more of the following methods: (i) a block
trade in which a broker-dealer so engaged will attempt to sell the Shares as
agent but may position and resell a portion of the block as principal to
facilitate the transaction; (ii) purchases by a broker-dealer as principal and
resale by such broker-dealer for its account pursuant to this Prospectus;
(iii) an exchange distribution in accordance with the rules of such exchange;
and (iv) ordinary brokerage transactions in which the broker solicits
purchasers. The Selling Stockholder may also enter into option or other
transactions with broker-dealers which require the delivery to the broker-dealer
of the Shares registered hereunder, which the broker-dealer may resell or
otherwise transfer pursuant to this Prospectus. The Selling Stockholder may
also loan or pledge the Shares to a broker-dealer and the broker-dealer may sell
Shares so loaned or upon default the broker-dealer may effect sales of the
pledged Shares pursuant to this Prospectus. The Selling Stockholder may effect
such transactions by selling to or through one or more broker-dealers, and such
broker-dealers may receive compensation in the form of underwriting discounts,
concessions or commissions from the Selling Stockholder. In effecting sales,
broker-dealers engaged by the Selling Stockholder may arrange for other broker-
dealers to participate in the resales. The Selling Stockholder and any broker-
dealers that participate in the distribution may under certain circumstances be
deemed to be "underwriters" within the meaning of the Securities Act, and any
commissions received by such broker-dealers and any profits realized on the sale
of Shares by them may be deemed to be underwriting discounts and commissions
under the Securities Act. The Selling Stockholder may agree to indemnify such
broker-dealers against certain liabilities, including liabilities under the
Securities Act. In addition, ALZA has agreed to indemnify the Selling
Stockholder with respect to the Shares offered hereby against certain
liabilities, including, without limitation, certain liabilities under the
Securities Act, or, if such indemnity is unavailable, to contribute toward
amounts required to be paid in respect of such liabilities.
Any broker-dealer participating in such transactions as agent may receive
commissions from the Selling Stockholder (and, if they act as agent for the
purchaser of such Shares, from such purchaser). Broker-dealers may agree with
the Selling Stockholder to sell a specified number of Shares at a stipulated
price per share, and, to the extent such a broker-dealer is unable to do so
acting as agent for the Selling Stockholder, to purchase as principal any unsold
Shares at the price required to fulfill the broker-dealer commitment to the
Selling Stockholder. Broker-dealers who acquire Shares as principal may
thereafter resell such Shares from time to time in transactions (which may
involve crosses and block transactions and which may involve sales to and
through other broker-dealers, including transactions of the nature described
above) in the over-the-counter market, in negotiated transactions or otherwise
at market prices prevailing at the time of sale or at negotiated prices, and in
connection with such resales may pay to or receive from the purchasers of such
Shares commissions computed as described above. To the extent required under
the Securities Act, a supplemental prospectus will be filed, disclosing (a) the
name of any such broker-dealers, (b) the number of Shares involved, (c) the
price at which such Shares are to be sold, (d) the commissions paid or discounts
or concessions allowed to such broker-dealers, where applicable, (e) that such
broker-dealers did not conduct any investigation to verify the information set
out or incorporated by reference in this Prospectus, as supplemented, and (f)
other facts material to the transaction. In addition, any securities covered by
this Prospectus which qualify for sale pursuant to Rule 144 may be sold under
Rule 144 rather than pursuant to this Prospectus.
The Shares offered hereby are being registered pursuant to contractual
obligations of the Company. The Selling Stockholder will pay all commissions,
transfer taxes, and other expenses associated with the sale of securities by the
Selling Stockholder and the expenses of the preparation of this Prospectus. ALZA
has not made any underwriting arrangements with respect to the sale of Shares
offered hereby.
7
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SELLING STOCKHOLDER
The following table sets forth certain information regarding beneficial
ownership of ALZA's Common Stock by Selling Stockholder as of June 30, 1996 and
as adjusted to reflect the sale by the Selling Stockholder of Shares offered by
this Prospectus.
SHARES SHARES
BENEFICIALLY OWNED BENEFICIALLY OWNED
PRIOR TO OFFERING(1) SHARES AFTER OFFERING(1)(2)
-------------------- TO BE --------------------
SELLING STOCKHOLDER NUMBER PERCENT SOLD NUMBER PERCENT
- ------------------- ------ ------- ---- ------ -------
Goldman, Sachs & Co. 1,000,000 1.19% 1,000,000 0 0%
- -------------------------
(1) Applicable percentage of ownership is based on 84,282,497 shares of Common
Stock outstanding as of June 30, 1996.
(2) Assumes the sale of all Shares of Common Stock covered by this Prospectus.
LEGAL MATTERS
The validity of the issuance of the Shares will be passed upon by Peter D.
Staple, Vice President and General Counsel of ALZA.
EXPERTS
The consolidated financial statements and financial statement schedule of
ALZA Corporation appearing or incorporated by reference in ALZA's Annual Report
(Form 10-K) for the year ended December 31, 1995, have been audited by Ernst &
Young LLP, independent auditors, as set forth in their reports thereon included
or incorporated by reference therein and incorporated herein by reference. Such
consolidated financial statements and financial statement schedule are
incorporated herein by reference in reliance upon such reports given upon the
authority of such firm as experts in accounting and auditing.
8
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PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The expenses in connection with the distribution of the securities being
registered, all of which will be paid by the Selling Stockholder, are estimated
as follows:
Securities and Exchange Commission Registration Fee. . . $ 8,750.00
Blue Sky Fees and Expenses*. . . . . . . . . . . . . . . 2,000.00
Legal Fees and Expenses* . . . . . . . . . . . . . . . . 5,000.00
Accounting Fees and Expenses*. . . . . . . . . . . . . . 11,000.00
Miscellaneous* . . . . . . . . . . . . . . . . . . . . . 3,250.00
----------
Total. . . . . . . . . . . . . . . . . . . . $30,000.00
----------
----------
- --------------
*Estimated
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 102 of the Delaware General Corporation Law allows a corporation to
eliminate the personal liability of directors of a corporation to the
corporation or to any of its stockholders for monetary damage for a breach of
his or her fiduciary duty as a director, except in the case where the director
breached his or her duty of loyalty, failed to act in good faith, engaged in
intentional misconduct or knowingly violated a law, authorized the payment of a
dividend or approved a stock repurchase in violation of Delaware corporate law
or obtained an improper personal benefit. ALZA's Certificate of Incorporation
contains a provision that eliminates directors' personal liability as set forth
above.
Section 145 of the Delaware General Corporation Law, as amended, provides
that a corporation may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative, by
reason of the fact that he or she is or was a director, officer, employee or
agent of the corporation or is or was serving at its request in such capacity in
another corporation or business association against expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by him or her in connection with such action, suit or
proceeding if he or she acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the best interests of the corporation and,
with respect to any criminal action or proceeding, had no reasonable cause to
believe his or her conduct was unlawful.
In addition, Article 9 of ALZA's Certificate of Incorporation provides as
follows:
LIMITATION OF LIABILITY AND INDEMNIFICATION OF DIRECTORS.
(a) ELIMINATION OF CERTAIN LIABILITY OF DIRECTORS. No director of the
corporation shall be personally liable to the corporation or its stockholders
for monetary damages for breach of fiduciary duty as a director, except for
liability (i) for any breach of the director's duty of loyalty to the
corporation or its stockholders, (ii) for acts or omissions not in good faith or
which involve intentional misconduct or a knowing violation of law, (iii) under
Section 174 of the Delaware General Corporation Law or (iv) for any transaction
from which the director derived an improper personal benefit.
<PAGE>
(b) INDEMNIFICATION AND INSURANCE.
(1) RIGHT TO INDEMNIFICATION. Each person who was or is made a
party or is threatened to be made a party to or is involved in any
action, suit or proceeding, whether civil, criminal, administrative or
investigative (a "proceeding"), because he or she, or a person of whom
he or she is the legal representative, is or was a director or officer
of the corporation or is or was serving at the request of the
corporation as a director, officer, employee or agent of another
corporation or of a partnership, joint venture, trust or other
enterprise (including service with respect to employee benefit plans),
whether the basis of the proceeding is alleged action in an official
capacity as a director, officer, employee or agent or in any other
capacity while serving as a director, officer, employee or agent,
shall be indemnified and held harmless by the corporation to the
fullest extent authorized by the Delaware General Corporation Law,
as the same exists or may hereafter be amended (but, in the case of
any such amendment, only to the extent that such amendment permits
the corporation to provide broader indemnification rights than that
law permitted the corporation to provide before such amendment),
against all expense, liability and loss (including attorneys' fees,
judgments, penalties, fines, Employee Retirement Income Security Act
of 1974 excise taxes or penalties, and amounts paid or to be paid in
settlement) reasonably incurred or suffered by such person in
connection therewith; provided, however, that the corporation shall
indemnify any such person seeking indemnification in connection with
a proceeding (or part thereof) initiated by such person only if the
proceeding (or part thereof) was authorized by the Board of
Directors of the corporation. Such indemnification shall continue
as to a person who has ceased to be a director, officer, employee or
agent and shall inure to the benefit of his or her heirs, executors
and administrators. The right to indemnification conferred by this
Section shall be a contract right which may not be retroactively
amended and shall include the right to be paid by the corporation
the expenses incurred in defending any such proceeding in advance of
its final disposition; provided, however, that, if the Delaware
General Corporation Law requires, the payment of such expenses
incurred by a director or officer in his or her capacity as a
director or officer (and not in any other capacity in which service
was or is rendered by such person while a director or officer,
including, without limitation, service with respect to an employee
benefit plan) in advance of the final disposition of the proceeding
shall be made only upon delivery to the corporation of an
undertaking, by or on behalf of such director or officer, to repay
all amounts so advanced if ultimately it shall be determined that
such director or officer is not entitled to be indemnified under
this Section or otherwise. The corporation may, by action of its
Board of Directors, provide indemnification to employees and agents
of the corporation with the same scope and effect as the
indemnification of directors and officers.
(2) NONEXCLUSIVITY OF RIGHTS. The right to indemnification and
the payment of expenses incurred in defending a proceeding in advance
of its final disposition conferred in this Section shall not be
exclusive of any other right which any person may have or hereafter
acquire under any statute, provision of this Certificate of
Incorporation, bylaw, agreement, vote of stockholders or disinterested
directors, or otherwise.
(3) INSURANCE. The corporation may maintain insurance, at its
expense, to protect itself and any director, officer, employee or
agent of the corporation or another corporation, partnership, joint
venture, trust or other enterprise against any such expense, liability
or loss, whether or not the corporation would have the power to
indemnify such person against such expense, liability or loss under
the Delaware General Corporation Law.
ALZA has purchased directors and officers liability insurance which would
indemnify the directors and officers of ALZA against damages arising out of
certain kinds of claims which might be made against them based on their
negligent acts or omissions while acting in their capacity as such.
ITEM 16. EXHIBITS.
5.1 Opinion of General Counsel of ALZA as to legality of Common Stock
23.1 Consent of Ernst & Young LLP, Independent Auditors
23.2 Consent of General Counsel of ALZA (included in opinion filed as
Exhibit 5.1 to this Registration Statement)
24.1 Power of Attorney (included on page II-4)
II-2
<PAGE>
ITEM 17. UNDERTAKINGS.
The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, as amended (the
"Securities Act"), each filing of the Registrant's annual report pursuant to
Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as
amended (and, where applicable, each filing of an employee benefit plan's annual
report pursuant to Section 15(d) of the Securities Exchange Act of 1934, as
amended) that is incorporated by reference in this registration statement shall
be deemed to be a new registration statement relating to the securities offered
herein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
Insofar as indemnification for liabilities under the Securities Act may
be permitted to directors, officers and controlling persons of the Registrant
pursuant to the provisions described in Item 15 above, or otherwise, the
Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Securities Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or paid by a director,
officer or controlling person of the Registrant in the successful defense of
any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate
jurisdiction the question of whether such indemnification by it is against
public policy as expressed in the Securities Act and will be governed by the
final adjudication of such issue.
The undersigned Registrant hereby undertakes that:
(1) For purposes of determining any liability under the Securities Act,
the information omitted from the form of prospectus filed as part of this
registration statement in reliance upon Rule 430A and contained in a form of
prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the Securities Act shall be deemed to be part of this registration
statement as of the time it was declared effective.
(2) For the purpose of determining any liability under the Securities Act,
each post-effective amendment that contains a form of prospectus shall be deemed
to be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
II-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the city of Palo Alto, State of California, on August 9, 1996.
ALZA CORPORATION
/s/ Ernest Mario
----------------------------------------
Dr. Ernest Mario,
Co-Chairman and Chief Executive Officer
POWER OF ATTORNEY
Each person whose signature appears below constitutes and appoints Ernest
Mario and Bruce C. Cozadd his true and lawful attorneys-in-fact and agents, each
acting alone, with full power of substitution and resubstitution, for him and in
his name, place and stead, in any and all capacities, to sign any or all
amendments (including post-effective amendments) to the Registration Statement,
and to sign any registration statement for the same offering covered by this
Registration Statement that is to be effective upon filing pursuant to Rule
462(b) under the Securities Act of 1933, as amended, and all post-effective
amendments thereto, and to file the same, with all exhibits thereto, and all
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully to all intents and purposes as he might or
could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents, each acting alone, or his or her substitute or
substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated:
Signature Title Date
--------- ----- ----
/s/ Alejandro Zaffaroni Co-Chairman of the Board and Director August 9, 1996
- -----------------------
Dr. Alejandro Zaffaroni
/s/ Ernest Mario Co-Chairman of the Board, Chief August 9, 1996
- ----------------------- Executive Officer and Director
Dr. Ernest Mario (Principal Executive Officer)
/s/ William G. Davis Director August 9, 1996
- -----------------------
William G. Davis
/s/ Robert J. Glaser Director August 9, 1996
- -----------------------
Dr. Robert J. Glaser
/s/ Dean O. Morton Director August 9, 1996
- -----------------------
Dean O. Morton
/s/ Isaac Stein Director August 9, 1996
- -----------------------
Isaac Stein
/s/ Julian N. Stern Director August 9, 1996
- -----------------------
Julian N. Stern
/s/ Bruce C. Cozadd Vice President and Chief Financial August 9, 1996
- ----------------------- Officer (Principal Financial and
Bruce C. Cozadd Accounting Officer)
<PAGE>
Exhibit 5
August 9, 1996
ALZA Corporation
950 Page Mill Road
P.O. Box 10950
Palo Alto, California 94303-0802
Registration Statement on Form S-3
----------------------------------
Ladies and Gentlemen:
I am delivering this opinion in my capacity as Vice President and
General Counsel of ALZA Corporation, a Delaware corporation ("ALZA"), in
connection with the Registration Statement on Form S-3 (the "Registration
Statement") which ALZA proposes to file with the Securities and Exchange
Commission on or about August 9, 1996, for the purpose of registering under the
Securities Act of 1933, as amended, an aggregate of 1,000,000 shares of its
Common Stock, par value $.01 (the "Shares"). The Shares were issued upon
exercise of a warrant to purchase Common Stock (the "Warrant") held by the
holder thereof (the "Selling Stockholder").
In connection with this opinion, I have assumed the authenticity of
all records, documents and instruments submitted to me as originals, the
genuineness of all signatures, the legal capacity of natural persons and the
conformity to the originals of all records, documents and instruments submitted
to me as copies. I have based my opinion upon my review of such records,
documents and instruments as I have deemed appropriate to render this opinion.
This opinion is limited to the General Corporation Law of the State of
Delaware. I disclaim any opinion as to any other statute, rule, regulation,
ordinance, order or other promulgation of any other jurisdiction or any regional
or local governmental body.
<PAGE>
ALZA Corporation
August 9, 1996 Page 2
Based upon the foregoing and my examination of such questions of law
as I have deemed necessary or appropriate for the purpose of this opinion, and
assuming that (i) the Registration Statement becomes and remains effective
during the period when the Shares are offered and sold, (ii) the Shares to be
sold by the Selling Stockholder were issued in accordance with the terms of the
Warrant, (iii) the Shares to be sold by the Selling Stockholder were
delivered by the Company and paid for by the Selling Stockholder, in each
case in accordance with the terms of the Warrant, and (iv) all applicable
securities laws are complied with, it is my opinion that the Shares covered
by the Registration Statement were validly issued and are fully paid and
nonassessable.
I hereby consent to the filing of this opinion as an exhibit to the
Registration Statement.
Very truly yours,
/s/ Peter D. Staple
Peter D. Staple
Vice President and General Counsel
<PAGE>
Exhibit 23.1
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption "Experts" in the
Registration Statement (Form S-3) and related Prospectus of ALZA Corporation for
the registration of shares of common stock and to the incorporation by reference
therein of our reports dated February 16, 1996, with respect to the consolidated
financial statements of ALZA Corporation incorporated by reference in its Annual
Report (Form 10-K) for the year ended December 31, 1995 and the related
financial statement schedule included therein, filed with the Securities and
Exchange Commission.
/s/ Ernst & Young LLP
Palo Alto, California
August 12, 1996
