HEALTHCARE VENTURES II LP
SC 13D, 1997-02-14
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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13D


                    Under the Securities Exchange Act of 1934
                               (Amendment No. 1 )*


                                  Diacrin, Inc.
- -------------------------------------------------------------------------------
                                (Name of Issuer)

                           Common Stock, .01 par value
- -------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                    25243N103
- -------------------------------------------------------------------------------
                                 (CUSIP Number)

             Tina Baker, Esq., Bachner, Tally, Polevoy & Misher LLP
           380 Madison Avenue, New York, New York 10017 (212) 687-7000
- -------------------------------------------------------------------------------
            (Name, Address and Telephone Number of Person Authorized
                     to Receive Notices and Communications)


                              2/16/96 and 10/28/96
- -------------------------------------------------------------------------------
             (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 the 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
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall be deemed to
be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934
("Act") or otherwise subject to the liabilities of that section of the Act but
shall be subject to all other provisions of the Act (however, see the Notes).

                        (Continued on following page(s))

                               Page 1 of 20 Pages

                      The Exhibit Index appears on page 18.



<PAGE> 
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page  2  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            HealthCare Ventures II, L.P.
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [ ]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                      [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            Delaware
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             3,196,385
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                3,196,385
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            3,196,385
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             24.5%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           PN
       -------------------------------------------------------------------
<PAGE>
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page  3  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            HealthCare Partners II, L.P.
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [ ]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                      [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            Delaware
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             3,196,385
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                3,196,385
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            3,196,385
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             24.5%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           PN
       -------------------------------------------------------------------
<PAGE> 
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page 4  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            HealthCare Ventures III, L.P.
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [X]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                     [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            Delaware
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             994,078
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                994,078
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            994,078
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             8%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           PN
       -------------------------------------------------------------------

<PAGE> 
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page 5  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            HealthCare Partners III, L.P.
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [X]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                     [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            Delaware
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             994,078
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                994,078
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            994,078
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             8%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           PN
       -------------------------------------------------------------------

<PAGE> 
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page 6  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            HealthCare Ventures IV, L.P.
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [X]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                     [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            Delaware
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             291,922
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                 291,922
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            291,922
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             2%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           PN
       -------------------------------------------------------------------
<PAGE> 
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page 7  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            HealthCare Partners IV, L.P.
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [X]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                     [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            Delaware
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             291,922
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                 291,922
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            291,922
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             2%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           PN
       -------------------------------------------------------------------
<PAGE> 
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page 8  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            James H. Cavanaugh, Ph.D.
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [ ]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                     [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            U.S.A.
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             4,482,385
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                 4,482,385
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            4,482,385
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             34.4%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           IN
       -------------------------------------------------------------------


<PAGE> 
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page 9  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            Harold R. Werner
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [ ]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                     [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            U.S.A.
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             4,482,385
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                 4,482,385
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            4,482,385
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             34.4%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           IN
       -------------------------------------------------------------------

<PAGE> 
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page 10  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            John W. Littlechild
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [ ]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                     [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            U.S.A.
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             4,482,385
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                 4,482,385
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            4,482,385
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             34.4%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           IN
       -------------------------------------------------------------------


<PAGE> 
                                  SCHEDULE 13D

       CUSIP No.   25243N103                         Page 11  of  20  pages
                 ------------                            -----  -----
       -------------------------------------------------------------------
       1.   NAME OF REPORTING PERSON
            S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

            William Crouse
           
       -------------------------------------------------------------------
       2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*    (a) [ ]
                                                                 (b) [ ]
       -------------------------------------------------------------------
       3.   SEC USE ONLY

       -------------------------------------------------------------------
       4.   SOURCE OF FUNDS*
            N/A
       -------------------------------------------------------------------
       5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
            PURSUANT TO ITEMS 2(3) OR 2(e)
                                                                      [ ]
       -------------------------------------------------------------------
       6.   CITIZENSHIP OR PLACE OF ORGANIZATION

            U.S.A.
       -------------------------------------------------------------------
                           7.   SOLE VOTING POWER
             
                                
                           -----------------------------------------------
        NUMBER OF          8.   SHARED VOTING POWER
          SHARES
       BENEFICIALLY             4,482,385
         OWNED BY          -----------------------------------------------
           EACH            9.   SOLE DISPOSITIVE POWER
        REPORTING       
          PERSON                
           WITH            -----------------------------------------------
                           10.   SHARED DISPOSITIVE POWER

                                 4,482,385
       -------------------------------------------------------------------
       11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            4,482,385
       -------------------------------------------------------------------
       12. CHECK  BOX IF THE AGGREGATE  AMOUNT  IN  ROW  (11)  EXCLUDES
           CERTAIN SHARES*    [ ]

                                       
       -------------------------------------------------------------------
       13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

             34.4%
       -------------------------------------------------------------------
       14. TYPE OF REPORTING PERSON

           IN
       -------------------------------------------------------------------


<PAGE>
                                                     Page 12 of 20 Pages 
                                                          --   ---       
                                                     
Item 1.      Security and Issuer

             (a)   Title of Class of Securities

                   Common Stock, $0.01 par value ("Shares").

             (b)   Name of Issuer

                   Diacrin, Inc.

             (c)   Address of Issuer's Principal Executive Officers

                   Building 96, 13th Street
                   Charlestown Navy Yard
                   Charlestown, Massachusetts 02129


Item 2.      Identity and Background

             (a)   This statement if filed by HealthCare Ventures II, L.P. ("HCV
                   II"), HealthCare Partners II, L.P. ("HCP II"), HealthCare
                   Ventures III, L.P. ("HCV III"), HealthCare Partners III, L.P.
                   ("HCP III"), HealthCare Ventures IV, L.P. ("HCV IV"),
                   HealthCare Partners IV, L.P. ("HCP IV"), Dr. Cavanaugh and
                   Messrs. Werner, Littlechild and Crouse. See attached Exhibit
                   A which is a copy of their agreement in writing to file this
                   statement on behalf of each of them.(1)

             (b)   The business address for HCV II, HCP II, HCV III, HCP III,
                   HCV IV, HCP IV, Dr. Cavanaugh and Messrs. Werner and Crouse
                   is Twin Towers at Metro Park, 379 Thornall Street, Edison,
                   New Jersey 08837. The business address for Mr. Littlechild is
                   One Kendall Square, Building 300, Cambridge, Massachusetts
                   02139.

             (c)   James H. Cavanaugh, Ph.D. is the Chairman of HealthCare
                   Investment Corporation ("HIC"), the management company for
                   HCV II, HCV III and HCV IV. Messrs. Werner, Littlechild and
                   Crouse are each a Vice Chairman of HIC. All of the foregoing
                   individuals are general partners of HCP II, HCP III, and HCP
                   IV. Mr. Littlechild is also a director of the Issuer.

             (d)   Each of HCV II, HCP II, HCV III, HCP III, HCV IV, HCP IV, Dr.
                   Cavanaugh and Messrs. Werner, Littlechild and Crouse have
                   not, during the last five years, been convicted in a criminal
                   proceeding (excluding traffic violations or similar
                   misdemeanors).

             (e)   Each of HCV II, HCP II, HCV III, HCP III, HCV IV, HCP IV,
                   Dr. Cavanaugh and
- --------
  (1)   Dr. Cavanaugh and Messrs. Werner, Littlechild and Crouse are
        general partners of HCP II, HCP III and HCP IV, which are the
        general partners of each of HCV II, HCV III and HCV IV,
        respectively, the record holder of Issuer's securities.


<PAGE>


                                                             Page 13 of 20 Pages
                                                                ------ ------


                   Messrs. Werner, Littlechild and Crouse have not been, during
                   the last five years, a party to a civil proceeding of a
                   judicial or administrative body of competent jurisdiction and
                   as a result of any such proceeding 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 or finding any violations with
                   respect to such laws.

             (f)   HCV II, HCP II, HCV III, HCP III, HCV IV and HCP IV are
                   limited partnerships organized under the laws of the State of
                   Delaware. Dr. Cavanaugh and Messrs. Werner, Littlechild and
                   Crouse are United States citizens.


Item 3.      Source and Amount of Funds or Other Considerations

             HCV II is a limited partnership formed to provide capital to
             companies in the healthcare field. An aggregate of $43,084.80 of
             cash from the contributed capital of the limited partners of HCV II
             was utilized by HCV II to acquire the Common Stock of Issuer upon
             exercise of the Warrants.


Item 4.      Purpose of Transaction

             The securities of Issuer were acquired for investment purposes by
             HCV II, HCV III and HCV IV.


Item 5.      Interest in Securities of the Issuer

             (a)   As of December 31, 1996: (i) HCV II and HCP II beneficially
                   owned 3,196,385 of Issuer's Common Stock; (ii) HCV III and
                   HCP III beneficially owned 994,078 Shares of Issuer's Common
                   Stock; (iii) HCV IV and HCP IV beneficially owned 291,922
                   Shares of Issuer's Common Stock; and (iv) Dr. Cavanaugh and
                   Messrs. Werner, Littlechild and Crouse beneficially owned
                   4,482,385 Shares of Issuer's Common Stock.

                   As of December 31, 1996: (i) the 3,196,385 Shares of Issuer's
                   Common Stock beneficially owned by HCV II and HCP II
                   constitute 24.5% of Issuer's Shares, outstanding; (ii) the
                   994,078 Shares of Issuer's Common Stock beneficially owned by
                   HCV III and HCP III constitute 8% of Issuer's Shares
                   outstanding; (iii) the 291,922 Shares of Issuer's Common
                   Stock beneficially owned by HCV IV and HCP IV constitute 2%
                   of Issuer's Shares outstanding; and (iv) the 4,482,385 Shares
                   of Issuer's Common Stock beneficially owned by Dr. Cavanaugh
                   and Messrs. Werner, Littlechild and Crouse constitute 34.4%
                   of Issuer's Shares outstanding.



<PAGE>


                                                             Page 14 of 20 Pages
                                                                ------ ------

             (b)   Number of shares as to which such person has:

                   (i)     sole power to vote or to direct the vote:

                           Inapplicable.

                   (ii)    shared power to vote or to direct the vote:

                           HCV II and HCP II share the power to vote or to
                           direct the vote of those Shares owned by HCV II. HCV
                           III and HCP III share the power to vote or to direct
                           the vote of those Shares owned by HCV III. HCV IV and
                           HCP IV share the power to vote or to direct the vote
                           of those Shares owned by HCV IV. Dr. Cavanaugh and
                           Messrs. Werner, Littlechild and Crouse share the
                           power to vote or to direct the vote of those Shares
                           owned by HCV II, HCV III and HCV IV.

                   (iii)   sole power to dispose or to direct the disposition
                           of:

                           Inapplicable.

                   (iv)    shared power to dispose of or to direct the 
                           disposition of:

                           HCV II and HCP II share the power to dispose of or to
                           direct the disposition of those Shares owned by HCV
                           II. HCV III and HCP III share the power to dispose of
                           or to direct the disposition of those Shares owned by
                           HCV III. HCV IV and HCP IV share the power to dispose
                           of or to direct the disposition of those Shares owned
                           by HCV IV. Dr. Cavanaugh and Messrs. Werner,
                           Littlechild and Crouse share the power to dispose of
                           or to direct the disposition of those Shares owned by
                           HCV II, HCV III and HCV IV.

             (c)   As a result of the closing of the Issuer's initial public
                   offering on February 16, 1996: (i) the 6,380,802 Shares of
                   Preferred Stock beneficially owned by HCV II and HCP II were
                   automatically converted into 3,190,401 Shares of Issuer's
                   Common Stock, giving effect to a one-for-two reverse stock
                   split of the Issuer's Common Stock (the "Reverse Stock
                   Split"); (ii) the $2,485,195 principal amount of 7-1/2%
                   Convertible Notes due May 31, 2000 (the "Notes") beneficially
                   owned by HCV III and HCP III were automatically converted
                   into 994,078 Shares of Issuer's Common Stock, giving effect
                   to the Reverse Stock Split; and (iii) the $729,805 of Notes
                   beneficially owned by HCV IV and HCP IV were automatically
                   converted into 291,922 Shares of Issuer's Common Stock,
                   giving effect to the Reverse Stock Split.

                   On October 28, 1996, HCV II exercised the 11,968 Common Stock
                   Warrants beneficially owned by it and was issued 5,984 Shares
                   of Issuer's Common Stock, giving effect to the Reverse Stock
                   Split

             (d)   Inapplicable

             (e)   Inapplicable
<PAGE>


                                                             Page 15 of 20 Pages
                                                                ------ ------

Item 6.      Contracts, Arrangements, Understandings or Relationship with
             respect to Securities  of the Issuer

             On March 26, 1992, HCV III and HCV IV entered into an InterFund
             Agreement which provides for HCV III and HCV IV to coordinate their
             investment activities so as to acquire, hold and dispose of
             identical securities in proportion to their respective contributed
             capital.


Item 7.      Materials to Be Filed as Exhibits

             (A)   Agreement to Jointly File


             (B) InterFund Agreement dated as of March 26, 1992 between HCV III
and HCV IV.*
























*Previously filed as an Exhibit to the Schedule 13D filed by HCV III and HCV IV
on June 9, 1995.
<PAGE>


                                                             Page 16 of 20 Pages
                                                                ------ ------


                                   SIGNATURES

                   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.
<TABLE>


<S>                                                     <C>                                                         
Dated:  February 13, 1997                            HealthCare Ventures II, L.P.,
        Edison, New Jersey                           by its General Partner, HealthCare Partners II, L.P.


                                                     By:     /s/ Jeffrey Steinberg
                                                           -----------------------------
                                                             Administrative Partner


Dated:  February 13, 1997                            HealthCare Partners II, L.P.
        Edison, New Jersey

                                                     By:     /s/ Jeffrey Steinberg
                                                           -----------------------------
                                                             Administrative Partner


Dated:  February 13, 1997                            HealthCare Ventures III, L.P.
        Edison, New Jersey                           by its General Partner, HealthCare Partners III, L.P.


                                                     By:     /s/ Jeffrey Steinberg
                                                           -----------------------------
                                                             Administrative Partner


Dated:  February 13, 1997                            HealthCare Partners III, L.P.
        Edison, New Jersey

                                                     By:     /s/ Jeffrey Steinberg
                                                           -----------------------------
                                                             Administrative Partner


Dated:  February 13, 1997                            HealthCare Ventures IV, L.P.
        Edison, New Jersey                           by its General Partner, HealthCare Partners IV, L.P.


                                                     By:     /s/ Jeffrey Steinberg
                                                           -----------------------------
                                                             Administrative Partner

</TABLE>

<PAGE>



                                                             Page 17 of 20 Pages
                                                                ------ ------

<TABLE>
<S>                                                  <C>                                                    
Dated:  February 13, 1997                            HealthCare Partners IV, L.P.
        Edison, New Jersey

                                                     By:     /s/ Jeffrey Steinberg
                                                           -----------------------------
                                                             Administrative Partner

Dated:  February 13, 1997                            By:     /s/ Jeffrey Steinberg as Attorney-in-Fact
        Edison, New Jersey                                 -----------------------------
                                                             James H. Cavanaugh, Ph.D.


Dated:  February 13, 1997                            By:     /s/ Jeffrey Steinberg as Attorney-in-Fact
        Edison, New Jersey                                 -----------------------------
                                                             Harold R. Werner


Dated:  February 13, 1997                            By:     /s/ Jeffrey Steinberg as Attorney-in-Fact
        Cambridge, Massachusetts                            ----------------------------
                                                             John W. Littlechild


Dated:  February 13, 1997                            By:     /s/ Jeffrey Steinberg as Attorney-in-Fact
        Edison, New Jersey                                 -----------------------------
                                                             William Crouse

</TABLE>

<PAGE>
                                  EXHIBIT INDEX



  Exhibit                   Description          Page No.
  -------                   -----------          --------

Exhibit A            Agreement to Jointly File                         19











<PAGE>


                                                            Page 19 of 20 Pages
                                                                ------ ------


                                    EXHIBIT A

                                    AGREEMENT

                          JOINT FILING OF SCHEDULE 13D


                  The undersigned hereby agree to jointly prepare and file with
regulatory authorities a Schedule 13D and any future amendments thereto
reporting each of the undersigned's ownership of securities of Diacrin, Inc. and
hereby affirm that such Schedule 13D is being filed on behalf of each of the
undersigned.

<TABLE>
<CAPTION>
<S>                                                  <C>


Dated:  February 13, 1997                            HealthCare Ventures II, L.P.,
        Edison, New Jersey                           by its General Partner, HealthCare Partners II, L.P.


                                                     By:  /s/ Jeffrey Steinberg
                                                          --------------------------
                                                          Administrative Partner


Dated:  February 13, 1997                            HealthCare Partners II, L.P.
        Edison, New Jersey

                                                     By: /s/ Jeffrey Steinberg
                                                        ----------------------------
                                                         Administrative Partner


Dated:  February 13, 1997                            HealthCare Ventures III, L.P.
        Edison, New Jersey                           by its General Partner, HealthCare Partners III, L.P.


                                                     By: /s/ Jeffrey Steinberg
                                                         --------------------------
                                                         Administrative Partner


Dated:  February 13, 1997                            HealthCare Partners III, L.P.
        Edison, New Jersey

                                                     By: /s/ Jeffrey Steinberg
                                                         ---------------------------
                                                         Administrative Partner

</TABLE>


  
<PAGE>


                                                            Page 20 of 20 Pages
                                                               -----   ----
<TABLE>
<CAPTION>
<S>                                                  <C>
Dated:  February 13, 1997                            HealthCare Ventures IV, L.P.
        Edison, New Jersey                           by its General Partner, HealthCare Partners IV, L.P.


                                                     By: /s/ Jeffrey Steinberg
                                                         ----------------------
                                                         Administrative Partner


Dated:  February 13, 1997                            HealthCare Partners IV, L.P.
        Edison, New Jersey

                                                     By: /s/ Jeffrey Steinberg
                                                         ----------------------
                                                         Administrative Partner


Dated:  February 13, 1997                            By: /s/ Jeffrey Steinberg as Attorney-in-Fact
        Edison, New Jersey                               -------------------------
                                                         James H. Cavanaugh, Ph.D.


Dated:  February 13, 1997                            By: /s/ Jeffrey Steinberg as Attorney-in-Fact
        Edison, New Jersey                               ----------------------
                                                         Harold R. Werner


Dated:  February 13, 1997                            By: /s/ Jeffrey Steinberg as Attorney-in-Fact
        Cambridge, Massachusetts                         ----------------------
                                                         John W. Littlechild


Dated:  February 13, 1997                            By: /s/ Jeffrey Steinberg as Attorney-in-Fact
        Edison, New Jersey                               ----------------------
                                                         William Crouse

</TABLE>






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