UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 0-21022
SHAMAN PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)
Delaware 94-3095806
(State or other jurisdiction (I.R.S. Employer
of incorporation of organization) Identification Number)
213 East Grand Avenue 94080
South San Francisco, California
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: 415-952-7070
Indicate by check mark whether the registrant (1) 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
Number of shares of Common Stock, $.001 par value, outstanding as of
March 31, 1996: 13,351,133
<PAGE>
SHAMAN PHARMACEUTICALS, INC.
INDEX FOR FORM 10-Q
MARCH 31, 1996
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION
<S> <C> <C> <C> <C> <C> <C>
Item 1 Financial Statements and Notes
Condensed Balance Sheets as of March 31, 1996
and December 31, 1995 3
Condensed Statements of Operations for the three months
ended March 31, 1996 and March 31, 1995 4
Condensed Statements of Cash Flows for the three months
ended March 31, 1996 and March 31, 1995 5
Note to Condensed Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II OTHER INFORMATION 13
Item 1 Legal Proceedings
Item 2 Changes in Securities
Item 3 Defaults in Senior Securities
Item 4 Submission of Matters to a Vote of Security Holders
Item 5 Other Information
Item 6 Exhibits and Reports on Form 8-K
SIGNATURES 14
</TABLE>
<PAGE>
PART I. FINANCIAL INFORMATION.
Item 1. Financial Statements and Notes
<TABLE>
<CAPTION>
SHAMAN PHARMACEUTICALS, INC.
CONDENSED BALANCE SHEETS
<S> <C> <C> <C> <C> <C> <C>
March 31, December 31,
1996 1995
(Unaudited) (Note)
ASSETS
Current assets:
Cash and cash equivalents $ 8,378,572 $ 9,210,123
Short-term investments 13,465,733 17,454,778
Prepaid expenses and other current assets 743,037 858,724
------------ ------------
Total current assets 22,587,342 27,523,625
Property and equipment, net 5,940,531 6,158,056
Other assets 128,080 128,080
------------ ------------
Total assets $ 28,655,953 $ 33,809,761
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other accrued expenses $ 1,016,291 $ 668,078
Accrued clinical trial costs 707,265 1,016,573
Accrued professional fees 519,712 705,374
Accrued compensation 377,543 383,089
Advances - contract research 289,855 789,855
Current installments of long-term obligations 1,141,356 1,111,128
------------ ------------
Total current liabilities 4,052,022 4,674,097
Long-term obligations, excluding
current installments 5,314,050 4,930,263
Stockholders' equity:
Common stock 13,351 13,258
Additional paid-in capital 88,244,444 88,170,926
Deferred compensation and other adjustments (125,352) (146,956)
Accumulated deficit (68,842,562) (63,831,827)
------------ ------------
Total stockholders' equity 19,289,881 24,205,401
------------ ------------
Total liabilities and stockholders' equity $ 28,655,953 $ 33,809,761
============ ============
</TABLE>
NOTE: The balance sheet at December 31, 1995 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See Note 1 to condensed financial statements.
<PAGE>
SHAMAN PHARMACEUTICALS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------
1996 1995
------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Revenue from collaborative
agreement $ 500,000 $ --
Operating expenses:
Research and development $ 4,798,371 3,880,908
General and administrative 868,203 877,379
------------ ------------
Total operating expenses 5,666,574 4,758,287
------------ ------------
Loss from operations (5,166,574) (4,758,287)
Other income (expense):
Interest income 318,104 436,946
Interest expense (162,265) (161,422)
------------ ------------
Net loss $ (5,010,735) $ (4,482,763)
============ ============
Net loss per share $ (0.38) $ (0.34)
============ ============
Shares used in calculation
of net loss per share 13,334,000 13,038,000
============ ============
</TABLE>
See Note 1 to condensed financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHAMAN PHARMACEUTICALS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Three Months Ended
March 31,
----------------------
<S> <C> <C> <C> <C> <C> <C>
1996 1995
------------ -----------
Operating activities:
Net loss $ (5,010,735) $(4,482,763)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 656,589 636,734
Contribution of common stock -- 6,137
Changes in operating assets and liabilities:
Prepaid expenses, other current assets
and other assets 115,687 116,766
Accounts payable, accrued expenses and
contract research advances (652,303) (1,225,783)
------------ -----------
Net cash used in operating activities (4,890,762) (4,948,909)
------------ -----------
Investing activities:
Purchases of short investments (6,388,869) (3,510,358)
Maturities of available-for-sale investments 10,333,314 8,629,500
Capital expenditures (408,793) (31,543)
------------ -----------
Net cash provided by investing activities 3,535,652 5,087,599
Financing activities:
Proceeds from issuance of common stock 109,544 160,822
Proceeds from long-term obligations 600,000 --
Principal payments on long-term obligations (185,985) (209,405)
------------ -----------
Net cash provided by (used in) financing activities 523,559 (48,583)
Net increase (decrease) in cash and cash equivalents (831,551) 90,107
Cash and cash equivalents at beginning of period 9,210,123 8,776,582
------------ -----------
Cash and cash equivalents at end of period $ 8,378,572 $ 8,866,689
============ ===========
</TABLE>
See Note 1 to condensed financial statements.
<PAGE>
SHAMAN PHARMACEUTICALS, INC.
NOTE TO CONDENSED FINANCIAL STATEMENTS
March 31, 1996
(Unaudited)
1. Basis of Presentation
Shaman Pharmaceuticals, Inc. ("Shaman" or the "Company") is a mid-stage
pharmaceutical company developing new drugs from tropical plants with a history
of medicinal use. These drugs are expected to provide new medicines with
applications in human health care markets.
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and in accordance with the instructions to Form 10-Q and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting only of normal recurring accruals) considered necessary for a fair
presentation have been included. The results of operations for the interim
periods shown herein are not necessarily indicative of operating results for the
entire year.
This unaudited financial data should be read in conjunction with the
audited financial statements and notes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1995, filed with the
Securities and Exchange Commission on April 1, 1996.
Operating expenses for 1995 have been reclassified to conform to 1996
presentation.
<PAGE>
SHAMAN PHARMACEUTICALS, INC.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Overview
During the ten months from inception in May 1989 until March 1990, the
Company was engaged in organizational efforts, including the formation of its
Scientific Strategy Team and hiring of scientific and management personnel. In
March 1990, the Company began focusing its research efforts on the discovery and
development of new classes of pharmaceuticals derived from tropical plants. To
date, Shaman has not sold any products and does not anticipate receiving product
revenue in the near future. The Company has been unprofitable since its
inception and expects to continue to incur substantial and increasing losses
over the next several years, due primarily to the expense of preclinical
studies, clinical trials, and expansion of its research and development
programs. The Company expects that losses will fluctuate from quarter to quarter
and that such fluctuations could be substantial. As of March 31, 1996, Shaman
had an accumulated deficit of approximately $68.8 million. Shaman has financed
its research and development activities and operations primarily through private
placements of its equity securities, an initial public offering of common stock
in January 1993, a secondary offering completed in December 1993 and, to a
lesser extent, through equipment and leasehold improvement financings and
collaborative agreements.
Shaman centers its research efforts in therapeutic programs in which
the Company believes that its drug discovery approach provides a distinct
competitive advantage over other methodologies. Shaman's ethnobotanical strategy
provides the basis for focusing on therapeutic targets which: (a) have symptoms
that are easily observable and being treated by traditional healers using
plant-based remedies; (b) are best modeled by whole animal testing; (c) have an
underlying pathophysiology which is complicated and characterized by multiple
abnormalities that could lead to the disease state; and (d) have large market
opportunities which are not well managed by available therapies. Diabetes
mellitus, which fits these parameters, is the Company's lead basic research
effort.
In October 1995, the Company announced that Virend(R), its plant-derived
antiviral drug, was shown to be efficacious in healing herpes lesions in a Phase
II clinical trial. The study involved 45 patients with AIDS and recurring
genital herpes. Results from the randomized, double-blind, placebo-controlled
study showed that 38% of patients receiving Virend had lesions that healed
completely, compared with 14% in the placebo-controlled group. Based on these
results, the Company is planning to begin a Phase III study in patients with
genital herpes in 1996.
The Company also announced late in 1995 that preclinical animal
research showed Provir(TM), a second plant-derived product, to be potentially
effective as an oral antidiarrheal agent. Because Provir's safety has been
established in previously conducted Phase I clinical trials, the Company expects
to initiate Phase II trials in 1996 for the treatment of secretory diarrhea.
<PAGE>
In June 1995, the Company licensed several patents from Bayer AG
("Bayer") relating to the use of a compound known as nikkomycin Z for the
development of antifungal agents. Under the terms of the agreement, the Company
has paid Bayer a licensing fee and may be required, upon the occurrence of
certain events, to make clinical milestone payments and to pay royalties on any
commercialized products derived from the agreement. Shaman initially intends to
develop nikkomycin Z for the treatment of endemic mycoses, systemic fungal
diseases which can be life threatening, especially in immunocompromised
patients. Shaman is finalizing its preclinical data package for nikkomycin Z and
intends to file an Investigational New Drug application to begin human clinical
trials late in 1996.
In May 1995, Shaman entered into a three-year collaborative agreement
with Ono Pharmaceutical Co., Ltd. ("Ono") of Osaka, Japan for the research and
development of compounds for the treatment of non-insulin-dependent diabetes
mellitus. Under the terms of the agreement, Shaman screens diabetes-specific
plants in vivo, isolates and identifies active compounds, and participates in
any medicinal chemistry modification. In turn, Ono provides preclinical and
clinical development capabilities through proprietary in vitro assays and
medicinal chemistry efforts. Ono will retain development and commercialization
rights in Japan, South Korea and Taiwan while Shaman will retain all other
territorial rights. The Company is actively pursuing an additional partner in
its diabetes research and development program.
Results of Operations
Three Months Ended March 31, 1996 and March 31, 1995
The Company recorded revenues of $500,000 for the quarter ended March
31, 1996 for ongoing research funding under the collaborative agreement with Ono
signed in May, 1995. There was no corresponding collaboration revenue for the
same quarter a year ago.
Overall, total operating expenses increased $908,000 for the quarter
ended March 31, 1996 compared with the quarter ended March 31, 1995.
Substantially all of the increase is attributable to the Company's development
activities with respect to nikkomycin Z and expanded efforts in its diabetes
program. Research and development expenses are likely to increase in upcoming
quarters as the Company initiates additional clinical trials for its product
candidates. General and administrative expenses were virtually unchanged for the
quarter ended March 31, 1996 compared with the quarter ended March 31, 1995.
General and administrative expenses are not expected to materially increase in
1996 because the Company's increased clinical activity does not require
commensurate increases in general and administrative support.
<PAGE>
Interest income decreased for the quarter ended March 31, 1996 compared
with the quarter ended March 31, 1995 due to lower cash and investment balances
as the Company funds its operations. Interest expense was virtually unchanged
between the first quarter of 1995 and the first quarter of 1996 despite higher
debt balances in 1996 because the average interest rate on the Company's
unsecured term loan (more fully described under the heading "Liquidity and
Capital Resources") was 8% for the quarter compared with an average interest
rate of approximately 12% for the lease debt in effect during the quarter ended
March 31, 1995.
Liquidity and Capital Resources
For the quarter ended March 31, 1996, the Company funded its operations
principally through net maturities in its available-for-sale investment
portfolio. Funds required for capital assets and facilities expansion were
obtained from the Company's unsecured term loan, along with an advance of
approximately $200,000 to fund planned expansion in the second quarter.
As of March 31, 1996, the Company's cash, cash equivalents, and
investments totaled approximately $21.8 million, compared with $26.7 million at
December 31, 1995 with an average investment maturity of five and four and a
half months, respectively. The Company invests excess cash according to its
investment policy that provides guidelines with regard to liquidity, type of
investment, credit rating and concentration limits.
In October 1995, the Company closed a $2.5 million unsecured term loan
to finance capital asset acquisitions and facilities expansion. The credit
facility may be increased to $5.0 million if specified collaborative or
financing objectives are met. The four-year loan requires monthly interest
payments for the first 18 months, at which time the principal and accrued
interest will be payable over the remaining 30 months. If the Company does not
achieve its collaborative or financing milestones by May 15, 1996, payment terms
will be accelerated to 24 months beginning on that date. Interest on each
advance is charged at the London Interbank Offered Rate (LIBOR) plus 1.5% or
prime plus 0.5%. At March 31, 1996, the Company had drawn the full $2.5 million
at an average interest rate of approximately 8.0%. This debt is classified as
long-term at March 31, 1996.
The Company expects to incur substantial additional costs relating to
the continued clinical development of its products, other research and
development programs, preclinical and clinical testing, and regulatory
activities. The Company anticipates that its cash, cash equivalents and
investment balances of approximately $21.8 million at March 31, 1996 along with
the collaborative revenue committed by Ono will last until the third quarter of
1997.
<PAGE>
Recognizing the need for additional financing, the Company continues to
actively pursue collaborative partnerships with pharmaceutical companies to
support its research programs. To the extent the Company is successful in
creating such partnerships, cash balances would be enhanced through research
funding and fees, milestone payments and possible equity investments. Additional
potential sources of capital include public and private equity financings,
capital equipment financings, and bank lines of credit. There can be no
assurance that any of these sources of funds will be available to the Company on
reasonable terms, if at all.
Future Outlook
In addition to historical information, this report contains
predictions, estimates and other forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Actual results could differ materially from any future
performance suggested in this report as a result of the risk factors set forth
below and in the Company's Annual Report on Form 10-K filed with the Securities
and Exchange Commission April 1, 1996.
<PAGE>
Risk Factors
History of Operating Losses; Products Still in Development; Future
Profitability Uncertain. Shaman's potential products are in research and
development. In order to generate revenues or profits, the Company, alone or
with others, must successfully develop, test, obtain regulatory approval and
market its potential products. No assurance can be given that these product
development efforts will be successful, that required regulatory approvals will
be obtained, or that the products, if developed and introduced, will be
successfully marketed or achieve market acceptance.
Additional Financing Requirements and Uncertain Access to Capital
Markets. The Company has significant long-term capital requirements and, in the
event Shaman receives regulatory approval for any of its products, it will incur
substantial expenditures to develop manufacturing, sales and marketing
capabilities. The Company will need to raise additional funds for these purposes
through additional equity or debt financings, collaborative arrangements with
corporate partners or from other sources. No assurance can be given that such
additional funds will be available to the Company to finance its development on
acceptable terms, if at all.
No Assurance of FDA Approval for Marketing; Government Regulation. The
Company's activities with respect to research, preclinical development, clinical
trials, manufacturing and marketing in the United States and other countries are
subject to extensive regulation by numerous governmental authorities including,
but not limited to, the Food and Drug Administration ("FDA"). The process of
obtaining FDA and other required regulatory approvals is lengthy and requires
the expenditure of substantial resources. Success cannot be assured. In order to
obtain FDA approval, the Company must perform clinical tests to demonstrate to
the FDA's satisfaction that a product is safe and effective for its intended
uses. The Company may encounter problems in clinical trials which could cause
the FDA or the Company to delay or suspend clinical trials. Further, the Company
must demonstrate that it is capable of manufacturing bulk product to the
relevant standards. There can be no assurance that any of the Company's future
studies will demonstrate their intended result, that the Company's products will
not have undesirable side effects that may prevent or limit their commercial
use, or that the FDA will otherwise approve any of the Company's products.
Dependence on Sources of Supply. The Company currently imports all of
the plant materials from which its products are derived from countries in South
and Latin America, Africa and Southeast Asia. To the extent that its products
cannot be economically synthesized or otherwise produced, the Company will
continue to be dependent upon a supply of raw plant material. In addition,
tropical rainforests, and certain irreplaceable plant resources therein, are
currently threatened with destruction. In the event portions of the rainforests
are destroyed which contain the source material from which Shaman's current or
future products are derived, such destruction could have a material adverse
effect on the Company's operations and its financial condition.
<PAGE>
Limited Manufacturing and Marketing Experience and Capacity. The
Company currently produces products only in quantities necessary for clinical
trials and does not have the staff or facilities necessary to manufacture
products in commercial quantities. As a result, the Company must rely on
collaborative partners or third-party manufacturing facilities, which may not be
available on commercially acceptable terms adequate for Shaman's long-term
needs. The Company currently has no marketing or sales staff. To the extent that
the Company does not or is unable to enter into co-promotion agreements or to
arrange for third party distribution of its products, significant additional
resources will be required to develop a marketing and sales force.
Rapid Technological Change and Substantial Competition. The
pharmaceutical industry is subject to rapid and substantial technological
change. Technological competition from pharmaceutical companies, biotechnology
companies and universities is intense. Many of these entities have significantly
greater research and development capabilities, as well as substantial marketing,
manufacturing, financial and managerial resources, and represent significant
competition for the Company. There can be no assurance that developments by
others will not render the Company's products or technologies noncompetitive or
that the Company will be able to keep pace with technological developments.
Uncertainty Regarding Patents and Proprietary Rights. The Company's
success depends in part on its ability to obtain patent protection for its
products and to preserve its trade secrets. No assurance can be given that the
Company's patent applications will be approved, that any patents will provide
the Company with competitive advantages for its products or that they will not
be successfully challenged or circumvented by the Company's competitors.
Uncertainty of Health Care Reimbursement and Reform. Shaman's ability
to successfully commercialize its products may depend in part on the extent to
which reimbursement for the cost of such products and related treatments will be
available from government health administration authorities, private health
insurers and other organizations. Significant uncertainty exists as to the
pricing, availability of distribution channels and reimbursement status of newly
approved healthcare products.
Possible Volatility of Stock Price. The market price of the Company's
common stock, like the stock prices of many publicly traded biotechnology and
smaller pharmaceutical companies, has been and may continue to be highly
volatile.
Environmental Regulation. In connection with its research and
development activities and its periodic manufacturing of clinical trial
materials, the Company is subject to federal, state and local laws, rules,
regulations and policies governing the use, generation, manufacture, storage,
air emission, effluent discharge, handling and disposal of certain materials and
wastes. Although the Company believes that it has complied with these laws and
regulations in all material respects and has not been required to take any
action to correct any noncompliance, there can be no assurance that the Company
will not be required to incur significant costs to comply with environmental and
health and safety regulations in the future.
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults in Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit No. Description
10.48 Letter dated March 29, 1996 from The
Sumitomo Bank, Limited to Shaman
Pharmaceuticals, Inc. amending
the Loan Agreement dated
October 20, 1995 to extend the due
date from March 31, 1996 to
May 15, 1996 for Registrant to enter
into a collaboration agreement or
close an equity issuance.
27 Financial Data Schedule.
(b) No reports on Form 8-K were filed during the quarter ended
March 31, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: May 14, 1996.
Shaman Pharmaceuticals, Inc.
(Registrant)
/s/ Lisa A. Conte
Lisa A. Conte
President and Chief Executive Officer
(principal executive officer)
/s/ Barbara J. Goodrich
Barbara J. Goodrich
Senior Director of Finance
(principal financial and accounting officer)
<PAGE>
THE SUMITOMO BANK, LIMITED
U.S. COMMERICAL BANKING DEPARTMENT
PINE STREET CENTER
100 PINE STREET, SUITE 3300
SAN FRANCISCO, CA 94111-5219
TELEPHONE (415) 394-5565
FAX: (415) 394-9797
March 29, 1996
Shaman Pharmaceuticals, Inc.
213 East Grand Avenue
South San Francisco, CA 94080-4812
Attn.: Ms. Lisa A. Conte
President and Chief Executive Officer
Re: Loan Agreement Between Shaman Pharmaceuticals, Inc. and
The Sumitomo Bank, Limited dated October 20, 1995
Ladies and Gentlemen:
We refer to the above-referenced Loan Agreement (the "Loan Agreement") and the
Note. All capitalized terms used but not defined herein shall have the meanings
specified in the Loan Agreement.
You have requested the Bank for an extension of the time for the Borrower to
enter into a collaboration agreement with a Major Pharmaceutical Company on
terms satisfactory to the Bank or close Borrower's Equity Issuance. The Bank is
willing to grant such extension on the terms and conditions set forth herein.
Subject to the terms and conditions set forth herein, the Loan Agreement and the
Note are hereby amended as follows:
1. The date "March 31, 1996" set forth in Section 2.3(e) of the Loan Agreement
is hereby deleted and replaced by the date "May 15, 1996".
2. The date "March 31, 1996" set forth in the third paragraph of the Note is
hereby deleted and replaced by the date "May 15, 1996".
Notwithstanding the foregoing amendments to the Loan Agreement and Note,
each monthly installment of principal payable pursuant to Section 2.3(e) of the
Loan Agreement and the third paragraph of the Note shall continue to be in an
amount sufficient to amortize the principal balance of the Loan over the period
of twenty-four (24) months commencing with April 1, 1996, and continuing through
March 31, 1998, but the first equal monthly installment of principal otherwise
payable on the last Business Day of April, 1996, shall instead be payable on May
15, 1996, together with interest accrued thereon. All other equal monthly
installments of principal, together with accrued interest thereon, shall
continue to be made as required by Section 2.3(e) of the Loan Agreement and the
third paragraph of the Note on the last Business Day of each month commencing
with May, 1996, and continuing through March 31, 1998.
<PAGE>
Shaman Pharmaceuticals, Inc.
March 29, 1996
Page 2
Re: Loan Agreement Between Shaman Pharmaceuticals, Inc. and
The Sumitomo Bank, Limited dated October 20, 1995
Except as amended hereby, the terms and conditions of the Loan Agreement and the
Note shall remain unchanged and in full force and effect.
If the terms and conditions hereof are acceptable to you, please have the
attached copy of this letter duly executed in the place indicated below and
return such copy to us. If we do not receive a copy of this letter duly executed
by you on or before April 3, 1996, the amendments effected hereby shall not go
into effect.
Sincerely,
/s/ C.A. Daly /s/ Andrea B. Sargent
Carole A. Daly Andrea B. Sargent
Vice President Vice President and Manager
DH:mw
Accepted and Agreed to by:
SHAMAN PHARMACEUTICALS, INC.
By: /s/ Lisa A. Conte
Name: Lisa A. Conte
Title: President & CEO
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1.00
<CASH> 8,379
<SECURITIES> 13,466
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 22,587
<PP&E> 13,353
<DEPRECIATION> 7,412
<TOTAL-ASSETS> 28,656
<CURRENT-LIABILITIES> 4,052
<BONDS> 0
0
0
<COMMON> 13
<OTHER-SE> 19,277
<TOTAL-LIABILITY-AND-EQUITY> 28,656
<SALES> 0
<TOTAL-REVENUES> 500
<CGS> 0
<TOTAL-COSTS> 500
<OTHER-EXPENSES> 5,167
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 162
<INCOME-PRETAX> (5,011)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,011)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,011)
<EPS-PRIMARY> (0.38)
<EPS-DILUTED> 0
</TABLE>
