SCIOS INC
DEFA14A, 2000-01-13
PHARMACEUTICAL PREPARATIONS
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                            SCHEDULE 14A INFORMATION

                Proxy Statement Pursuant to Section 14(a) of the
                Securities Exchange Act of 1934 (Amendment No. )

Filed by the Registrant /x/
Filed by a party other than the Registrant / /

Check the appropriate box:
/ / Preliminary Proxy Statement
/ /  Confidential,  for  Use  of the  Commission  Only  (as  permitted  by  Rule
     14a-6(e)(2))
/ / Definitive Proxy Statement
/ / Definitive  Additional Materials
/x/ Soliciting Material Pursuant to Section 240.14a-11(c) or Section
     240.14a-12

                                   Scios Inc.
- --------------------------------------------------------------------------------
                (Name of Registrant as Specified In Its Charter)

- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate  box):
/x/ No fee required
/ / Fee computed on table below per Exchange  Act Rules  14a-6(i)(1)
     and 0-11

(1) Title of each class of securities to which transaction applies:

- ------------------------------------------------------------------------

(2) Aggregate number of securities to which transaction applies:

- ------------------------------------------------------------------------

(3) Per unit price or other underlying value of transaction computed pursuant to
Exchange  Act Rule  0-11  (set  forth the  amount  on which  the  filing  fee is
calculated and state how it was determined):

- ------------------------------------------------------------------------

(4) Proposed maximum aggregate value of transaction:

- ------------------------------------------------------------------------

(5) Total fee paid:

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/ / Fee paid previously with preliminary materials.

/ / Check box if any part of the fee is offset as provided by Exchange Act Rule
     0-11(a)(2) and identify the filing for which the offsetting fee was paid
     previously. Identify the previous filing by registration statement number,
     or the Form or Schedule and the date of its filing.

     (1) Amount Previously Paid:

     ------------------------------------------------------------------------

     (2) Form, Schedule or Registration Statement No.:

     ------------------------------------------------------------------------

     (3) Filing Party:

     -----------------------------------------------------------------------

     (4) Date Filed:

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<PAGE>

                               [SCIOS LETTERHEAD]

CONTACT:
Wendy Carhart
Scios Inc.
408/616-8325
or
Stanley J. Kay
MacKenzie Partners, Inc.
212/929-5940

FOR IMMEDIATE RELEASE:

                  SCIOS BOARD ADOPTS EMPLOYEE RETENTION PROGRAM

SUNNYVALE,  CALIFORNIA - January 12, 2000 - Scios Inc. (NASDAQ:  SCIO) announced
today  that its Board of  Directors  has  adopted a two-year  retention  program
applicable to all employees.  The program is intended to encourage  employees to
remain  with the Company  despite  the  potential  instability  and  uncertainty
created by the proxy contest threatened by Randal J. Kirk.

"The Scios  Board  believes  it is in the best  interests  of the  Company,  its
stockholders  and its employees to adopt a retention  program for all our valued
employees to ensure their  continued  commitment as Scios moves forward with our
focused new  business  plan," said  Donald B. Rice,  Ph.D.,  Chairman of Scios'
Board of Directors.  "Following  the strides Scios made under its new leadership
throughout the past year, the Board felt this short-term action was necessary to
minimize the impact of the threatened  proxy fight and the inherent  distraction
it could cause.  Our retention  program was thoroughly  reviewed to make certain
that it is consistent with similar programs."

"Retaining  our  scientists,  researchers,  and other  staff is  critical to our
Natrecor  and  p38-kinase  inhibitor  programs  - the  two key  products  in our
pipeline."  added  Richard B. Brewer,  President  and Chief  Executive  Officer.
"Considering how  highly-competitive  the market is for skilled employees in our
industry,  the entire Board  believes it is important at this  critical  time to
provide our employees with appropriate protection and incentives."

                                   -- more --

<PAGE>

                                                                January 12, 2000
                                                                          Page 2

The program provides that any employee who is involuntarily  terminated  without
cause or who voluntarily terminates his or her employment for good reason within
12 months  after a change of control is entitled to a lump sum cash  payment and
continuation  of  health  benefits  based on the  employee's  level  within  the
Company.  The program  will  expire if a change of control  has not  occurred by
December 31, 2001,  unless  extended by the Board. A change of control under the
program  includes  significant  changes in the  ownership  of the Company due to
change of control  transactions as well as a change in a majority of the current
Board.

Scios Inc.

Scios is a biopharmaceutical company engaged in the discovery,  development, and
commercialization of novel human therapeutics.  Scios has commercial or research
and   development   relationships   with   Chiron   Corporation,    The   DuPont
Pharmaceuticals   Company,   Eli  Lilly  and   Company,   GenVec   Inc.,   Kaken
Pharmaceutical  Co., Ltd., and Novo Nordisk A/S of Denmark.  Scios'  Psychiatric
Sales and Marketing Division  successfully  markets seven psychiatric  products,
including  co-promotion  arrangements  on Janssen  Pharmaceutica's  Risperdal(R)
(risperidone)  and SmithKline  Beecham's  Paxil(R)  (paroxetine  hydrochloride).
Additional  information  on  Scios  is  available  at its web  site  located  at
www.sciosinc.com  and in the Company's  various  filings with the Securities and
Exchange Commission.  For information about the Year 2000 Annual Meeting,  visit
www.sciosinc.com/election.

                                   -- more --

<PAGE>

                                                                January 12, 2000
                                                                          Page 3

                   CERTAIN INFORMATION CONCERNING PARTICIPANTS

Scios Inc. has scheduled  its annual  meeting of  stockholders  for February 28,
2000. The following  information  is provided  concerning  the  participants  on
behalf of Scios Inc. in the solicitation of proxies for this meeting.

The  following  individuals,  all of whom are  directors  of Scios Inc.,  may be
deemed  participants  in the  solicitation of proxies on behalf of the Company's
Board of Directors: Donald B. Rice, Ph.D. (Chairman of the Board of the Company;
President and Chief Executive  Officer of UroGenesys,  Inc.);  Richard B. Brewer
(Chief  Executive  Officer and  President of the  Company);  Samuel H.  Armacost
(Chairman,  SRI  International);  Myron Du Bain  (Chairman  and Chief  Executive
Officer  (Retired),  Fireman's  Fund  Corporation);  Charles  A.  Sanders,  M.D.
(Chairman and Chief Executive Officer (Retired), Glaxo Inc.); Solomon H. Snyder,
M.D. (Director,  Department of Neuroscience, and Distinguished Service Professor
of Neuroscience,  Pharmacology and Molecular Sciences and Psychiatry,  The Johns
Hopkins  University);  Burton E. Sobel,  M.D. (E.L.  Amidon Professor and Chair,
Department  of Medicine,  The  University of Vermont  College of Medicine);  and
Eugene  L. Step  (Executive  Vice  President,  President  of the  Pharmaceutical
Division  (Retired),  Eli Lilly and Company).  The  following  executives of the
Company may also be deemed  participants:  Thomas L. Feldman (Vice  President of
Sales &  Marketing);  Elliott B.  Grossbard,  M.D.  (Senior  Vice  President  of
Development);  David W. Gryska (Vice  President  of Finance and Chief  Financial
Officer);  John A. Lewicki,  Ph.D. (Vice President of Research);  John H. Newman
(Senior Vice President, General Counsel & Secretary); George F. Schreiner, M.D.,
Ph.D. (Vice President,  Cardiorenal  Research) and Wendy Carhart (Senior Manager
of Investor Relations).

In the aggregate,  these  individuals  beneficially  own 1,654,411 shares of the
Company's  Common Stock,  including  1,290,476  shares  subject to stock options
exercisable  within 60 days of  December  31,  1999.  None of these  individuals
beneficially  owns more than 1% of the Company's  Common  Stock.  In addition to
customary  cash  compensation  payable  to  non-employee  directors,  under  the
Company's Equity Incentive Plan each non-employee director receives an automatic
grant of a stock option to acquire  10,000 shares of the Company's  Common Stock
at each annual  meeting where the director is elected to the Company's  Board of
Directors.  Mr.  Brewer's  employment  agreement with the Company  provides for,
among other things, severance payments to Mr. Brewer in the event of termination
of his employment "without cause" or "for good reason."

                                    -- end --




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