<PAGE>
EXHIBIT 99.3
ALLIANCE PHARMACEUTICAL CORP.
UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS
On October 12, 2000, Alliance reached a definitive agreement to acquire
MBI.
The unaudited pro forma combined condensed financial statements which
follow have been prepared by Alliance based upon the historical financial
statements of Alliance and MBI and may not be indicative of the results that
may have actually occurred if the combination had been in effect on the date
indicated or for the periods presented or which may be obtained in the
future. The unaudited pro forma combined condensed statements of operations
includes the statements of operations of Alliance for the year ended June 30,
2000 and the three months ended September 30, 2000 and the statements of
operations of MBI for the year ended March 31, 2000 and the three months
ended September 30, 2000. The pro forma combined condensed financial
statements should be read in conjunction with the audited financial
statements and notes of Alliance incorporated by reference in Alliance's
Registration Statement on Form S-4, Registration No. 333-49676, which is
incorporated herein by reference, and the audited financial statements and
notes of MBI included therein.
The unaudited pro forma combined condensed statements of operations for
the year ended June 30, 2000 and the three months ended September 30, 2000
assume the purchase of MBI had been consummated on July 1, 1999. The pro
forma information is based on the historical financial statements of Alliance
and MBI giving effect to the transaction under the purchase method of
accounting and the assumptions and adjustments in the accompanying footnotes.
ALLIANCE PHARMACEUTICAL CORP.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET
<TABLE>
<CAPTION>
SEPTEMBER 30, 2000
----------------------------- PRO FORMA COMBINED
ALLIANCE MBI ADJUSTMENTS PRO FORMA
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Assets:
Current assets
Cash and cash equivalents...... $ 27,015,000 $ 2,930,000 $ -- $ 29,945,000
Short-term investments......... 822,000 6,904,000 -- 7,726,000
Other current assets........... 4,380,000 679,000 -- 5,059,000
------------- ------------- ------------- -------------
Total current assets......... 32,217,000 10,513,000 -- 42,730,000
Property, plant and equipment.... 19,287,000 -- -- 19,287,000
Purchased technology--net........ 9,774,000 -- 3,560,900(c) 13,334,900
Restricted cash.................. 5,000,000 -- -- 5,000,000
Investment in joint venture...... 5,000,000 -- -- 5,000,000
Other assets--net................ 539,000 1,634,000 -- 2,173,000
------------- ------------- ------------- -------------
$ 71,817,000 $ 12,147,000 $ 3,560,900 $ 87,524,900
============= ============= ============= =============
Current liabilities:
Accounts payable and accrued
expenses..................... $ 7,329,000 $ 3,382,000 $ 1,200,000(d) $ 11,911,000
Deferred revenue............... 10,000,000 -- -- 10,000,000
Current portion of long-term
debt......................... 4,667,000 600,000 -- 5,267,000
------------- ------------- ------------- -------------
Total current liabilities.... 21,996,000 3,982,000 1,200,000 27,178,000
Long-term debt................... 27,626,000 -- -- 27,626,000
Stockholders equity:
Preferred stock................ 5,000 -- -- 5,000
Common stock................... 480,000 186,000 (186,000)(a) 488,000
8,000 (c)
Additional paid in capital..... 408,377,000 134,288,000 (134,288,000)(a) 418,894,900
10,517,900 (c)
Accumulated comprehensive
income....................... 364,000 12,000 (12,000)(a) 364,000
Accumulated deficit............ (387,031,000) (126,321,000) 126,321,000 (b) (387,031,000)
------------- ------------- ------------- -------------
Total stockholders equity.... 22,195,000 8,165,000 2,360,900 32,720,900
------------- ------------- ------------- -------------
$ 71,817,000 $ 12,147,000 $ 3,560,900 $ 87,524,900
============= ============= ============= =============
</TABLE>
------------------------
(a) Elimination of existing MBI common stock, additional paid-in capital and
accumulated comprehensive income.
(b) Elimination of MBI's accumulated deficit.
(c) Issuance of 770,000 shares of Alliance's common stock valued at $10,525,900.
Adjustment to record the net assets of MBI at fair value with costs in
excess of net assets acquired allocated to purchased technology.
(d) Accrue estimated acquisition costs to be paid by Alliance.
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL
STATEMENTS.
1
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ALLIANCE PHARMACEUTICAL CORP.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS
FOR YEAR ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
PRO FORMA COMBINED
ALLIANCE MBI ADJUSTMENTS PRO FORMA
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
Revenues:
License and research revenue............. $ 16,000,000 $ 7,000,000 $ -- $ 23,000,000
Product and royalty revenues............. -- 1,525,000 -- 1,525,000
------------ ------------ --------- ------------
16,000,000 8,525,000 -- 24,525,000
Operating expenses:
Cost of goods sold..................... -- (107,000) -- (107,000)
Research and development............... 54,605,000 4,261,000 890,225(a) 59,756,225
Selling, general and administrative.... 9,760,000 10,166,000 -- 19,926,000
Other non-recurring charges............ -- 1,653,000 -- 1,653,000
------------ ------------ --------- ------------
Operating expenses....................... (64,365,000) (15,973,000) (890,225) (81,228,225)
------------ ------------ --------- ------------
Loss from operations..................... (48,365,000) (7,448,000) (890,225) (56,703,225)
Other income (expense)................... 1,898,000 (120,000) -- 1,778,000
------------ ------------ --------- ------------
Net loss................................. $(46,467,000) $ (7,568,000) $(890,225) $(54,925,225)
============ ============ ========= ============
Net loss per share, basic and diluted.... $ (1.03) $ (1.19)
============ ============
Shares used in the calculation of net
loss per share, basic and diluted...... 45,203,000 45,973,000
============ ============
</TABLE>
------------------------
(a) Adjustment to reflect the twelve months of amortization of purchased
technology based on the allocation of the assumed purchase price.
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL
STATEMENTS.
2
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ALLIANCE PHARMACEUTICAL CORP.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PRO FORMA COMBINED
ALLIANCE MBI ADJUSTMENTS PRO FORMA
------------ --------- ----------- ------------
<S> <C> <C> <C> <C>
Revenues:
License and research revenues............... $ 14,000 $ 15,000 $ -- $ 29,000
Product and royalty revenues................ -- 323,000 -- 323,000
------------ --------- --------- ------------
14,000 338,000 -- 352,000
Operating expenses:
Research and development.................. 13,865,000 -- 223,306(a) 14,088,306
General and administrative................ 2,420,000 931,000 -- 3,351,000
------------ --------- --------- ------------
Operating expenses.......................... (16,285,000) (931,000) (223,306) (17,439,306)
------------ --------- --------- ------------
Loss from operations........................ (16,271,000) (593,000) (223,306) (17,087,306)
Other income................................ 2,431,000 91,000 -- 2,522,000
------------ --------- --------- ------------
Net loss.................................... $(13,840,000) $(502,000) $(223,306) $(14,565,306)
============ ========= ========= ============
Net loss per share, basic and diluted....... $ (0.29) $ (0.30)
============ ============
Shares used in the calculation of net loss
per share, basic and diluted.............. 47,541,000 48,311,000
============ ============
</TABLE>
------------------------
(a) Adjustment to reflect the three months of amortization of purchased
technology based on the allocation of the assumed purchase price.
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL
STATEMENTS.
3
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ALLIANCE PHARMACEUTICAL CORP.
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS
NOTE 1.
The unaudited pro forma combined condensed financial statements reflect the
acquisition of Molecular Biosystems, Inc. ("MBI") by Alliance Pharmaceutical
Corp. ("Alliance") for a purchase price of approximately $11.7 million in common
stock of Alliance.
NOTE 2.
The unaudited pro forma combined condensed balance sheet combines Alliance's
September 30, 2000 unaudited balance sheet with MBI's September 30, 2000
unaudited balance sheet.
NOTE 3.
The unaudited pro forma combined condensed statement of operations for the
three months ended September 30, 2000 combines Alliance's unaudited statement of
operations for the three months ended September 30, 2000 with MBI's unaudited
statement of operations for the three months ended September 30, 2000. The
unaudited pro forma combined condensed statement of operations for the year
ended June 30, 2000 combines Alliance's audited statement of operations for the
year ended June 30, 2000 with MBI's audited statement of operations for the year
ended March 31, 2000. The unaudited pro forma combined condensed statements of
operations have been prepared by Alliance based upon the historical financial
statements of Alliance and MBI, and may not be indicative of the results that
may be obtained in the future. The pro forma combined condensed financial
statements should be read in conjunction with the audited financial statements
and notes of Alliance and MBI.
NOTE 4.
Based upon the definitive agreement entered into, Alliance will acquire all
of the common stock of MBI in exchange for 770,000 shares of common stock of
Alliance and the assumption by Alliance of options and warrants to acquire
Alliance common stock. The purchase price includes estimated merger costs of
$1.2 million and assumed liabilities of $4.0 million. The purchase price for
purposes of the unaudited pro forma combined condensed financial statements was
allocated as follows based upon a preliminary valuation of the tangible and
intangible assets at September 30, 2000. These amounts are subject to change
upon the closing of the business combination:
<TABLE>
<S> <C>
TOTAL ACQUISITION COSTS:
Issuance of common stock, options and warrants.............. $10,525,900
Acquisition related expenses................................ 1,200,000
-----------
$11,725,900
===========
ALLOCATED TO ASSETS AND LIABILITIES AS FOLLOWS:
Tangible assets acquired.................................... $12,147,000
Assumed liabilities......................................... (3,982,000)
Purchased technology........................................ 3,560,900
-----------
$11,725,900
===========
</TABLE>
NOTE 5.
The allocation of the purchase price was applied to the historical balance
sheet and historical statements of operations of Alliance and MBI to arrive at
the unaudited pro forma combined condensed balance sheet at September 30, 2000
and statements of operations for the year ended June 30, 2000 and the three
months ended September 30, 2000.
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