<PAGE>
FORM 1O-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from __________ to __________
Commission file number 0-19732
-------
CORVAS INTERNATIONAL, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 33-0238812
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
3030 SCIENCE PARK ROAD
SAN DIEGO, CALIFORNIA 92121
(Address of principal executive offices and zip code)
(858) 455-9800
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.001 par value
(Title of class)
Indicate by check mark whether the Registrant (l) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes |X| No |_|
At August 1, 2000, there were 21,153,215 shares of Common Stock, $0.001
par value, of the Registrant issued and outstanding.
<PAGE>
CORVAS INTERNATIONAL, INC.
INDEX
Page
----
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets as of June 30, 2000 and
December 31, 1999 (unaudited) 1
Condensed Statements of Operations for the Three and Six
Months Ended June 30, 2000 and 1999 (unaudited) 2
Condensed Statements of Cash Flows for the Six Months
Ended June 30, 2000 and 1999 (unaudited) 3
Notes to Condensed Financial Statements (unaudited) 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 5
Item 3. Quantitative and Qualitative Disclosures About Market Risk 8
PART II -- OTHER INFORMATION
Item 1. Legal Proceedings 9
None
Item 2. Changes in Securities 9
Item 3. Defaults Upon Senior Securities 9
None
Item 4. Submission of Matters to a Vote of Security Holders 9
Item 5. Other Information 10
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits 10
(b) Reports on Form 8-K 10
None
SIGNATURES 11
<PAGE>
PART I -- FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
<TABLE>
CORVAS INTERNATIONAL, INC.
CONDENSED BALANCE SHEETS
In thousands
(unaudited)
<CAPTION>
JUNE 30, 2000 DECEMBER 31, 1999
------------- -----------------
ASSETS
------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 793 $ 881
Short-term debt securities held to maturity
and time deposits, partially restricted 31,565 20,630
Receivables 268 316
Note receivable from related party 278 278
Other current assets 622 547
-------------- --------------
Total current assets 33,526 22,652
-------------- --------------
Debt issuance costs 117 127
Property and equipment, net 1,150 1,110
-------------- --------------
$ 34,793 $ 23,889
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 828 $ 993
Accrued liabilities 1,420 1,167
Accrued vacation 253 214
-------------- --------------
Total current liabilities 2,501 2,374
-------------- --------------
Convertible notes payable 10,584 10,215
Deferred rent 74 25
Stockholders' equity:
Preferred stock - Series A and Series B 0 1
Common stock 21 17
Additional paid-in capital 116,960 102,127
Accumulated deficit (95,347) (90,870)
-------------- --------------
Total stockholders' equity 21,634 11,275
Commitments and contingencies
-------------- --------------
$ 34,793 $ 23,889
============== ==============
</TABLE>
See accompanying notes to condensed financial statements.
1
<PAGE>
<TABLE>
CORVAS INTERNATIONAL, INC.
CONDENSED STATEMENTS OF OPERATIONS
In thousands, except per share data
(unaudited)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------- -------------------------------
2000 1999 2000 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
REVENUES:
Revenue from collaborative agreements $ 750 $ 1,554 $ 1,763 $ 3,300
License fees and milestones 2,500 0 2,500 0
Royalties 58 13 67 36
Research grants 82 0 103 0
-------------- -------------- -------------- --------------
Total revenues 3,390 1,567 4,433 3,336
-------------- -------------- -------------- --------------
COSTS AND EXPENSES:
Research and development 3,611 3,678 7,521 6,782
General and administrative 967 857 1,894 1,635
-------------- -------------- -------------- --------------
Total costs and expenses 4,578 4,535 9,415 8,417
-------------- -------------- -------------- --------------
Loss from operations (1,188) (2,968) (4,982) (5,081)
OTHER INCOME (EXPENSE):
Interest income 498 157 884 395
Interest expense (188) 0 (379) 0
-------------- -------------- -------------- --------------
310 157 505 395
-------------- -------------- -------------- --------------
Net loss and other comprehensive loss $ (878) $ (2,811) $ (4,477) $ (4,686)
============== ============== ============== ==============
Basic and diluted net loss per share $ (0.04) $ (0.19) $ (0.22) $ (0.31)
============== ============== ============== ==============
Shares used in calculation of basic and
diluted net loss per share 21,114 15,153 20,375 15,140
============== ============== ============== ==============
</TABLE>
See accompanying notes to condensed financial statements.
2
<PAGE>
<TABLE>
CORVAS INTERNATIONAL, INC.
CONDENSED STATEMENTS OF CASH FLOWS
In thousands
(unaudited)
<CAPTION>
Six Months Ended
June 30,
--------------------------------
2000 1999
--------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (4,477) $ (4,686)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 244 284
Amortization of premiums and discounts on investments (619) 21
Amortization of debt issuance costs 10 0
Non-cash interest expense on convertible notes payable 369 0
Stock compensation expense 44 12
Change in assets and liabilities:
Decrease in receivables 48 50
(Increase) decrease in other current assets (75) 30
Increase in accounts payable, accrued
liabilities and accrued vacation 127 430
Increase in deferred rent 49 0
--------------- -------------
Net cash used in operating activities (4,280) (3,859)
--------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments held to maturity (30,961) (7,791)
Proceeds from maturity of investments held to maturity 20,645 12,373
Purchases of property and equipment (284) (49)
--------------- -------------
Net cash (used in) provided by investing activities (10,600) 4,533
--------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock 12,231 92
Capital contribution 2,561 0
--------------- -------------
Net cash provided by financing activities 14,792 92
--------------- -------------
Net (decrease) increase in cash and cash equivalents (88) 766
Cash and cash equivalents at beginning of period 881 611
--------------- -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 793 $ 1,377
=============== =============
</TABLE>
See accompanying notes to condensed financial statements.
3
<PAGE>
CORVAS INTERNATIONAL, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(unaudited)
(1) The Company
-----------
Corvas International, Inc. (the "Company") was incorporated on March
27, 1987 under the laws of the State of California. In July 1993, the Company
reincorporated in the State of Delaware. The Company is engaged in the design
and development of a new generation of therapeutic agents for cardiovascular,
cancer, stroke and other major diseases.
(2) Basis of Presentation
---------------------
The interim financial information contained herein is unaudited but, in
management's opinion, includes all adjustments, consisting only of normal
recurring adjustments, necessary for a fair presentation. The condensed
financial statements should be read in conjunction with the Company's audited
financial statements and notes thereto for the year ended December 31, 1999
included in the Company's Annual Report on Form 10-K. Results for the interim
periods are not necessarily indicative of results for other interim periods or
for the full year.
(3) Stockholders' Equity
--------------------
In February 2000, 1,000,000 shares of Series A Convertible Preferred
Stock and 250,000 shares of Series B Convertible Preferred Stock held by
Schering-Plough automatically converted into Common Stock after the market price
of the Company's Common Stock exceeded $7.50 and $12.00 per share, respectively,
for 10 consecutive trading days. Each preferred share converted into one share
of Common Stock.
In the first quarter of 2000, some of the warrant holders from the
February 1996 financing exercised their warrants, which resulted in total net
proceeds of $10,650,000. A total of 1,980,000 shares of the Company's Common
Stock was issued pursuant to the exercise of these warrants.
(4) Net Loss Per Share
------------------
Net loss per share for the six months ended June 30, 2000 and 1999 is
computed using the weighted-average number of common shares outstanding. Options
and warrants totaling 2,144,000 and 3,739,000 shares were excluded from the
calculation of net loss per share for the six months ended June 30, 2000 and
1999, respectively, since the effect of their inclusion would be anti-dilutive.
In addition, 3,215,000 shares from the assumed conversion of the 5.5%
convertible senior subordinated notes issued during 1999 have been excluded from
the June 30, 2000 calculation, and 1,250,000 shares of convertible preferred
stock have been excluded from the June 30, 1999 calculation, since their
inclusion would be anti-dilutive.
4
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THE FOLLOWING DISCUSSION OF OUR FINANCIAL CONDITION AND RESULTS OF
OPERATIONS CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM WHAT IS DISCUSSED
IN THE FORWARD-LOOKING STATEMENTS. FACTORS THAT MIGHT CAUSE SUCH DIFFERENCES
INCLUDE, BUT ARE NOT LIMITED TO, THOSE DISCUSSED IN OUR ANNUAL REPORT ON FORM
10-K UNDER THE HEADING "RISK FACTORS."
THE TERMS "CORVAS," "WE," "US" AND "OUR" REFER TO CORVAS
INTERNATIONAL, INC.
OVERVIEW
We are a clinical-stage biopharmaceutical firm engaged in the design
and development of a new generation of therapeutic agents for cardiovascular,
cancer, stroke and other major diseases. Since our inception in 1987, we have
not generated significant revenues from product sales and we currently do not
sell any commercial products. We have not been profitable on an annual basis
since inception and we anticipate that we will incur substantial additional
operating losses over the next several years as we progress in our research and
development programs. We expect that our sources of income, if any, for the next
several years will continue to primarily consist of payments under collaborative
agreements and interest income. Our historical results are not necessarily
indicative of our future results. In addition, we may not successfully develop,
commercialize, manufacture or market any products or generate sufficient
revenues to ever achieve or sustain profitability. At June 30, 2000, we had an
accumulated deficit of $95,347,000.
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2000 AND 1999
Our operating revenues increased by $1,823,000 to $3,390,000 in the
three months ended June 30, 2000, from $1,567,000 in the corresponding period of
1999. This increase was primarily due to recognition of a $2,500,000 license fee
received from Schering Corporation, or Schering-Plough, for the exclusive
license of technology and intellectual property developed under a collaborative
agreement for inhibitors of the hepatitis C virus. This amended agreement
effectively ended our commitment to provide any further research under this
program. Also contributing to this increase was $82,000 attributable to a grant
funding our malaria research program. A portion of this revenue increase was
offset by an $804,000 decrease in revenues from collaborative agreements. Of
this decrease, $394,000 was attributable to the end of research and development
funding on the hepatitis C collaboration, $250,000 to a decrease in funding from
Schering-Plough due to fewer scientists working on the extended agreement
covering oral anticoagulants for chronic thrombosis, and $160,000 to the 1999
termination of the option and related research and development agreements with
Vascular Genomics Inc., or VGI.
Total costs and expenses increased a net amount of $43,000, to
$4,578,000 from $4,535,000, comparing the three months ended June 30, 2000 to
the same period in 1999. Research and development costs decreased by $67,000,
mainly due to completion of patient enrollment in the Phase II trial of rNAPc2,
our proprietary anticoagulant drug candidate. General and administrative
expenses increased by $110,000 during this period, mainly the result of
increased administrative headcount and business development activities.
5
<PAGE>
Total other income increased to $310,000 in the second quarter of 2000,
compared to $157,000 in the corresponding quarter one year earlier. Interest
income increased by $341,000 as a result of both higher balances available for
investment and higher yields earned thereon. This increase was partially offset
by $188,000 of interest expense recorded as a result of the 5.5% senior
subordinated convertible notes, in an aggregate principal amount of $10,000,000,
that were issued in the second half of 1999.
SIX MONTHS ENDED JUNE 30, 2000 AND 1999
Operating revenues for the six months ended June 30, 2000 increased to
$4,433,000 from $3,336,000 in the same period of 1999. This $1,097,000 increase
was primarily attributable to the $2,500,000 license fee from Schering-Plough
for the hepatitis C inhibitor program and $103,000 of grant revenue recognized
as reimbursement for costs incurred on our malaria research program. These
increases were partially offset by a $1,537,000 decrease in revenue from
collaborative agreements primarily due to the contractual end of research and
development funding from Schering-Plough on the hepatitis C program and a
decrease in funding from Schering-Plough since there are fewer scientists
working on the extended oral anticoagulant program. Other factors contributing
to this reduction in revenue from collaborative agreements include the 1999
completion of research funding from Pfizer Inc. on our ongoing UK-279,276
program (previously designated rNIF) and the 1999 termination of the option and
related research and development agreement with VGI.
Total costs and expenses increased by $998,000, to $9,415,000 in the
first half of 2000 from $8,417,000 in the same period of 1999. Research and
development expenses increased by $739,000 primarily due to clinical trial
expenses for rNAPc2. General and administrative expenses increased by $259,000
comparing the first six months of 2000 to the same period in 1999. This increase
was primarily the result of our hiring additional administrative employees and
business development expenses.
Total other income increased to $505,000 in the six months ended June
30, 2000, compared to $395,000 in the same period one year earlier. This net
increase of $110,000 was the result of increased interest income, which was
partially offset by interest expense recorded in relation to the 5.5% senior
subordinated convertible notes issued in the second half of 1999.
Provided that additional capital is available to fund our operations,
we expect that we will continue to incur significant expenses and operating
losses over the next several years as our research and development and clinical
trials progress. However, we may not be able to raise any additional capital. We
also expect both our expenses and losses to fluctuate from quarter to quarter
and that the fluctuations may, at times, be substantial.
LIQUIDITY AND CAPITAL RESOURCES
Since inception, our operations have been financed primarily through a
public offering and private placements of our debt and equity securities,
payments from collaborative agreements, and interest income earned on cash and
investment balances. Our principal sources of liquidity are cash and cash
equivalents, time deposits and short-term debt securities, which, net of a
$303,000 restricted time deposit, totaled $32,055,000 as of June 30, 2000.
Working capital was $31,025,000 at June 30, 2000. In the first quarter of 2000,
we received $10,650,000 in net proceeds from the exercise of certain warrants
held by institutional investors. We invest available cash in accordance with an
investment policy set by our Board of Directors, which has established
objectives to preserve principal, maintain adequate liquidity and maximize
income. Our policy provides guidelines concerning the quality, term and
liquidity of investments. We presently invest our excess cash primarily in
government-backed debt instruments and, to a smaller degree, in debt instruments
of corporations with strong credit ratings.
6
<PAGE>
During the six months ended June 30, 2000, net cash of $4,280,000 was
used in operating activities and net cash of $10,600,000 was used in investing
activities. Net cash of $14,792,000 was provided by financing activities,
primarily due to the exercise of warrants which resulted in total net proceeds
of $10,650,000, as well as $1,553,000 from stock option exercises and $2,561,000
of profit recovered from the inadvertent purchase and sale of our stock within a
six month time period.
In the second half of 1999 we issued and sold, in two separate private
financings, a total of 2,000,000 shares of common stock for $2.50 per share and
5.5% convertible senior subordinated notes, due in August 2006, in an aggregate
principal amount of $10,000,000. Total net proceeds of $14,740,000 were raised
in these financings. Interest on the outstanding principal amounts of these
notes accretes at 5.5% per annum, compounded semi-annually, with interest
payable upon redemption or conversion. Upon maturity, these notes will have an
accreted value of $14,572,000. At our option, the accretion on both notes may be
paid in cash or in our common stock priced at the then-current market price. We
have agreed to pay any applicable withholding taxes that may be required in
connection with the accretion, which are estimated and accrued at 30% of the
annual accretion. At the option of the note holder, the principal of both notes
is convertible into shares of Corvas common stock at $3.25 per share, subject to
certain adjustments. We may call the notes for redemption anytime after August
18, 2002.
We will continue to incur substantial additional costs in the
foreseeable future due to, among other factors, costs related to ongoing and
planned clinical trial activities and other research and development activities.
Over the next several years, we expect these costs will result in additional
operating losses and negative cash flows from operations. In an attempt to share
the costs associated with our drug development programs, we are continuing to
pursue additional collaborative relationships, particularly for our NAP program.
Based on our current burn rate, we currently believe that our existing capital
resources and projected interest income should be sufficient to satisfy our
anticipated funding requirements for at least two years. In the future, we may
also receive additional funds from milestone payments and royalties on sales of
products in connection with our alliances. However, we may not receive any
additional amounts under our existing or any future alliances, and we may not be
successful in raising additional capital through strategic or other financings
or through collaborative relationships. Additionally, our expected cash
requirements may vary materially from those now anticipated.
Ongoing strategic collaborations with Schering-Plough and Pfizer
provide for payments to us if certain milestones are met. In addition to future
milestones, we may also receive royalties on product sales in connection with
our existing alliances, as well as from any future alliances. If all the
remaining milestones on all of our existing collaborations are achieved, Corvas
could receive a maximum of $56,250,000 in future milestone payments and research
and development funding over the next several years. However, our existing
collaborations may not be successful, we may not receive any future milestones
or other payments related to our collaborative agreements, and our
collaborations may not continue (since the existing agreements are terminable at
the option of our collaborators upon certain events).
Our future capital requirements will depend on many factors, including:
o the scientific progress in, and magnitude of, our drug
discovery programs;
o the scope and results of our preclinical testing and clinical
trials;
o the time and costs involved in obtaining regulatory approvals;
o the costs of filing, prosecuting, maintaining and enforcing
patents;
o the progress of competing technology and other market
developments;
o our ability to establish and maintain collaborative or
licensing arrangements;
o any changes in our existing collaborative relationships;
o the cost of manufacturing scale-up; and
o the effectiveness of our activities and arrangements, or those
of our collaborative partners, to commercialize our products.
7
<PAGE>
To continue our long-term product development efforts, we must raise
substantial additional funding either through collaborative arrangements or
through public or private financings. Our ability to raise additional funds
through sales of securities depends in part on investors' perceptions of the
biotechnology industry, in general, and of Corvas, in particular. The market for
securities of biotechnology companies, including Corvas, has historically been
highly volatile, especially recently, and accordingly, we may not be able to
raise additional funds by issuing securities. If additional funds are raised by
issuing securities, our stockholders will experience dilution, which may be
substantial. We may enter into additional collaborative relationships to develop
and commercialize some or all of our current or future technologies or products.
We may not be able to establish such relationships on satisfactory terms, if at
all, and agreements with collaborators may not successfully reduce our funding
requirements. In addition, we have never attempted to establish bank financing
arrangements, and we may not be able to establish such arrangements on
satisfactory terms, if at all. If adequate funds are not available in the
future, we may be required to significantly delay, scale back or discontinue one
or more of our drug discovery programs, clinical trials or other aspects of our
operations. We could also be forced to seek collaborative partners for our
programs at an earlier stage than would be desirable to maximize the rights to
future product candidates retained by Corvas.
NEW ACCOUNTING STANDARDS
In December 1999, the Securities and Exchange Commission, or SEC,
issued Staff Accounting Bulletin No. 101, or SAB 101, "Revenue Recognition in
Financial Statements", which includes certain revenue recognition issues related
to biotechnology companies. In June 2000, the SEC issued SAB 101B which delays
the implementation date of SAB 101 until no later than the fourth fiscal quarter
of fiscal years beginning after December 15, 1999. We are currently evaluating
the impact of SAB 101 on our reported results and are awaiting further guidance
from the SEC to assist in our evaluation.
In March 2000, the Financial Accounting Standards Board, or FASB,
issued FASB Interpretation No. 44, or FIN 44, "Accounting for Certain
Transactions Involving Stock Compensation - an Interpretation of APB Opinion No.
25". FIN 44 is effective July 1, 2000. We do not expect the application of FIN
44 to have a significant effect on our financial statements.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK
In accordance with our Company's policy, we do not invest in derivative
financial instruments or any other market risk sensitive instruments. Our
available cash is primarily invested in short-term, high quality fixed income
investments that are held to maturity. We believe that our interest rate market
risk is limited, and that we are not exposed to significant changes in fair
value because our investments are held to maturity. The fair value of each
investment approximates its amortized cost.
For purposes of measuring interest rate sensitivity, we have assumed
that the similar nature of our investments warrants aggregation. The carrying
amount of all held to maturity investments as of June 30, 2000 is $31,565,000;
they have a weighted-average interest rate of 6.24%.
Considering our investment balances as of June 30, 2000, rates of
return and the fixed rate nature of the convertible notes payable that were
issued in the second half of 1999, an immediate 10% change in interest rates
would not have a material impact on our financial condition or results of
operations.
Since the $10,000,000 aggregate principal of the 5.5% senior
subordinated convertible notes that we issued is convertible into common stock
at $3.25 per share at the option of the holder, there is underlying market risk
related to an increase in our stock price or an increase in interest rates that
may make conversion of these notes into common stock beneficial to the holder.
Conversion of these 5.5% senior subordinated convertible notes will have a
dilutive effect on ownership of our stock.
8
<PAGE>
PART II -- OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
None
Item 2. CHANGES IN SECURITIES
In February 2000, 1,000,000 shares of Series A Convertible Preferred
Stock and 250,000 shares of Series B Convertible Preferred Stock held by
Schering-Plough automatically converted into common stock after the market price
of our common stock exceeded $7.50 and $12.00 per share, respectively, for 10
consecutive trading days. Each share of preferred stock converted into one share
of common stock.
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting of stockholders of Corvas was scheduled on May 23,
2000 at which time the Board of Directors adjourned the meeting. The annual
meeting was reconvened and held on June 14, 2000. The matters described below
were submitted to a vote of stockholders. The Company had 21,106,269 shares of
common stock outstanding and entitled to vote as of March 31, 2000, the date of
record for the meeting. At the annual meeting, as reconvened, holders of a total
of 19,029,220 shares of common stock were present in person or represented by
proxy.
a. Election of Class II directors for a three-year term expiring at the
2003 annual meeting.
Name Shares voting for Shares withheld
---- ----------------- ---------------
Michael Sorell, M.D. 18,640,176 389,044
Nicole Vitullo 18,845,997 183,223
Class III directors continuing in office until the 2001 annual meeting:
M. Blake Ingle, Ph.D.
Burton E. Sobel, M.D.
Randall E. Woods
Class I directors continuing in office until the 2002 annual meeting:
J. Stuart Mackintosh
George P. Vlasuk, Ph.D.
b. A proposal to approve our 2000 Equity Incentive Plan.
For 10,974,965
Against 666,761
Abstain 66,063
c. A proposal to approve an amendment to our Employee Stock Purchase Plan.
For 11,552,761
Against 94,901
Abstain 60,127
d. A proposal to ratify the appointment of KPMG LLP as our independent
auditors for the fiscal year ending December 31, 2000.
For 18,970,292
Against 43,769
Abstain 15,769
9
<PAGE>
Item 5. OTHER INFORMATION
None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
Exhibit Number Description
-------------- -----------
10.57 Amendment Agreement between the Company, Schering
Corporation and Schering-Plough Ltd., effective as of
May 18, 2000.(1)
10.58 Fourteenth Amendment to Lease Agreement for 3030
Science Park Road, San Diego, California between the
Company and Hub Properties Trust, dated as of June 20,
2000.
10.59 Agreement between the Company and Centocor, Inc.,
dated as of July 14, 2000.(1)
27.1 Financial Data Schedule.
b. Reports on Form 8-K
There were no reports on Form 8-K filed for the quarter ended June
30, 2000.
--------
(1) Confidential treatment has been requested from the Securities and Exchange
Commission for portions of this exhibit.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this Report to be signed on its behalf
by the undersigned thereunto duly authorized.
CORVAS INTERNATIONAL, INC.
Date: August 11, 2000 By: /s/ RANDALL E. WOODS
-------------------------------------
Randall E. Woods
President and Chief Executive Officer
Date: August 11, 2000 By: /s/ CAROLYN M. FELZER
---------------------------
Carolyn M. Felzer
Senior Director of Finance
Principal Financial Officer
11
