<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
(RULE 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO 13d-1(a)
AND AMENDMENTS THERETO FILED PURSUANT TO 13d-2(a) 1
ARRIS PHARMACEUTICAL CORPORATION
--------------------------------
(Name of Issuer)
Common Stock
------------
(Title of Class of Securities)
04269 W 107
-----------
(CUSIP Number)
Hope Flack
BVF Partners L.P.
333 West Wacker Drive, Suite 1600
Chicago, Illinois 60606
(312) 263-7777
--------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
October 1, 1997
---------------
(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 [_].
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.
(Continued on following pages)
(Page 1 of 8 Pages)
- ----------------------
1 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 not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 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).
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CUSIP NO. 04269 W 107 SCHEDULE 13D PAGE 2 OF 8 PAGES
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- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Biotechnology Value Fund, L.P.
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
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SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
5 ITEMS 2(d) or 2(e) [_]
N/A
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CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
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SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
494,521
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING -0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
494,521
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
494,521
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
N/A [_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
3.3%
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TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP NO. 04269 W 107 SCHEDULE 13D PAGE 3 OF 8 PAGES
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- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
BVF Partners L.P.
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
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SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
OO
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
5 ITEMS 2(d) or 2(e) [_]
N/A
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
923,767
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING -0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
923,767
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
923,767
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
N/A [_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.1%
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TYPE OF REPORTING PERSON*
14
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 04269 W 107 SCHEDULE 13D PAGE 4 OF 8 PAGES
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
BVF Inc.
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
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SEC USE ONLY
3
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SOURCE OF FUNDS*
4
WC, OO
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
5 ITEMS 2(d) or 2(e) [_]
N/A
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
923,767
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING -0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
923,767
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
923,767
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
N/A [_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.1%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IA, CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 042629 W 107 SCHEDULE 13D Page 5 of 8 Pages
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ITEM 1. SECURITY AND ISSUER.
This Statement on Schedule 13D (this "Statement") relates to the Common
Stock, par value $.001 per share (the "Stock"), of Arris Pharmaceutical
Corporation, a Delaware corporation ("Arris"). The principal executive office
of Arris is located at 180 Kimball Way, South San Francisco, California 94080.
ITEM 2. IDENTITY AND BACKGROUND.
The persons filing this Statement, the persons enumerated in Instruction C
of Schedule 13D and, where applicable, their respective places of organization,
general partners, directors, executive officers and controlling persons, and
certain information regarding each of them, are as follows:
(a) Biotechnology Value Fund, L.P., a Delaware limited partnership ("BVF"),
BVF Partners L.P., a Delaware limited partnership ("Partners"), BVF Inc., a
Delaware corporation ("BVF Inc."), and Mark N. Lampert, an individual
("Lampert") (collectively, the "Reporting Persons").
(b) The business address of BVF and Partners is 333 West Wacker Drive,
Suite 1600, Chicago, Illinois 60606. The business address of BVF Inc. and
Lampert is One Sansome Street, 39th Floor, San Francisco, California 94104.
(c) Partners is the general partner of BVF, which is an investment limited
partnership. BVF Inc. is an investment adviser to and general partner of
Partners. Lampert is the sole shareholder, sole director and an officer of BVF
Inc.
(d) During the last five years, none of such persons has been convicted in
a criminal proceeding (excluding traffic violations and similar misdemeanors).
(e) During the last five years, none of such persons was a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as
a result of 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 violation with
respect to such laws.
(f) Lampert is a citizen of the United States of America.
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CUSIP NO. 04269 W 107 SCHEDULE 13D Page 6 of 8 Pages
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ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Since September 29, 1997, Partners, in its capacity as general partner of
BVF, has purchased on behalf of such limited partnership an aggregate number of
195,000 shares of the Stock for an aggregate consideration of $2,393,971.25,
utilizing funds provided by BVF from its working capital pursuant to the terms
of its limited partnership agreement with Partners, and has sold 1,000 shares of
the Stock for an aggregate consideration of $14,625.00. In addition, Partners,
in its capacity as investment manager with respect to certain managed accounts,
has purchased on behalf of such managed accounts an aggregate number of 168,000
shares of the Stock for an aggregate consideration of $2,061,870.00, utilizing
funds under management by Partners pursuant to investment management agreements
between Partners and such managed accounts.
ITEM 4. PURPOSE OF TRANSACTIONS.
The sole purpose of the acquisitions and dispositions of the Stock reported
herein is and was for investment. The Reporting Persons did not at the time of
such acquisitions or dispositions of the Stock, and do not presently, have any
plan to acquire control of Arris. The Reporting Persons may acquire or dispose
of additional shares of the Stock from time to time.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) BVF beneficially owns 494,521 shares of the Stock, Partners
beneficially owns 923,767 shares of the Stock, and BVF Inc. beneficially owns
923,767 shares of the Stock, approximately 3.3%, 6.1% and 6.1%, respectively, of
the aggregate number of shares outstanding as of October 3, 1997.
(b) BVF shares voting and dispositive power over the 494,521 shares of the
Stock it beneficially owns with Partners. Partners and BVF Inc. share voting
and dispositive power over the 923,767 shares of the Stock they beneficially own
with, in addition to BVF, the managed accounts on whose behalf Partners, as
investment manager, purchased such shares. The managed accounts on whose behalf
Partners owns shares of the Stock are Investment 10 L.L.C., an Illinois limited
liability company ("ILL10"), Palamundo, L.D.C., a limited duration company
organized under the laws of the Cayman Islands ("Palamundo"), ZPG Securities,
L.L.C., a New York limited liability company ("ZPG") and Biotechnology Value
Fund, Ltd., a Cayman Islands Corporation ("BVF Ltd."). ILL10, Palamundo, ZPG
and BVF Ltd. are collectively referred to herein as the "Accounts." The
Accounts specialize in holding biotechnology stocks for investment purposes and
the business address of each is % BVF Partners L.P., 333 West Wacker Drive,
Suite 1600, Chicago, Illinois 60606.
(c) Exhibit B attached hereto contains information as to all transactions
in the Stock by the Reporting Persons during the past 60 days. All such
transactions were made for cash in
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CUSIP NO. 04269 W 107 SCHEDULE 13D Page 7 of 8 Pages
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open market, over-the-counter transactions. No other transactions in the Stock
have been effected by the Reporting Persons during the past 60 days.
(d) The Accounts are entitled to receive dividends and any sale proceeds
with respect to the Stock in proportion to their respective ownership interests
therein.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Partners is the general partner of BVF pursuant to a limited partnership
agreement which authorizes Partners, among other things, to invest the funds of
BVF in the Stock and to vote and dispose of the Stock. Pursuant to such
limited partnership agreement, Partners is entitled to allocations based on
assets under management and realized and unrealized gains thereon. Pursuant to
investment management agreements with the Accounts, Partners and BVF Inc. have
the authority, among other things, to invest funds of the Accounts in the Stock
and to vote and dispose of the Stock. Pursuant to such agreements, Partners and
BVF Inc. receive fees based on assets under management and realized and
unrealized gains thereon. BVF Inc. is the general partner of Partners and may be
deemed to own beneficially securities over which Partners exercises voting and
dispositive power.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit A - Agreement Regarding Joint Filing
Exhibit B - Transactions in the Stock by the Reporting Persons during the
past 60 days.
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CUSIP NO. 04269 W 107 SCHEDULE 13D Page 8 of 8 Pages
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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.
Dated: October 3, 1997
BIOTECHNOLOGY VALUE FUND, L.P.
By: BVF Partners L.P., its general partner
By: BVF Inc., its general partner
By: /s/ Mark N. Lampert
-----------------------
Mark N. Lampert
President
BVF PARTNERS L.P.
By: BVF Inc., its general partner
By: /s/ Mark N. Lampert
----------------------------
Mark N. Lampert
President
BVF INC.
By: /s/ Mark N. Lampert
---------------------------------
Mark N. Lampert
President
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EXHIBIT A
AGREEMENT REGARDING JOINT FILING
--------------------------------
The undersigned, Biotechnology Value Fund, L.P., a Delaware limited
partnership, and BVF Partners L.P., a Delaware limited partnership, and BVF
Inc., a Delaware corporation, hereby agree and acknowledge that the statement
containing the information required by Schedule 13D, to which this Agreement is
attached as an exhibit, is filed on behalf of each of them. The undersigned
further agree that any amendments or supplements thereto shall also be filed on
behalf of each of them.
Dated: October 3, 1997
BIOTECHNOLOGY VALUE FUND, L.P.
By: BVF Partners L.P., its general partner
By: BVF Inc., its general partner
By: /s/ Mark N. Lampert
-----------------------
Mark N. Lampert
President
BVF PARTNERS L.P.
By: BVF Inc., its general partner
By: /s/ Mark N. Lampert
----------------------------
Mark N. Lampert
President
BVF INC.
By: /s/ Mark N. Lampert
---------------------------------
Mark N. Lampert
President
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EXHIBIT B
TRANSACTIONS IN THE STOCK BY THE REPORTING PERSONS
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DURING THE PAST 60 DAYS
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<TABLE>
<CAPTION>
Price
Settlement For the per
Date By Account of Quantity Share Type of Trade Broker
- ---------- ----------- ---------------- --------- --------- ------------- ------
============================================================================================
<C> <S> <C> <C> <C> <C> <C>
09/29/97 Partners BVF (1,000) $14.6250 Sale INET
- --------------------------------------------------------------------------------------------
09/30/97 Partners BVF 30,000 $12.4375 Purchase COWN
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09/30/97 Partners BVF 50,000 $12.5000 Purchase HMQT
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09/30/97 Partners BVF Ltd. 46,000 $12.4375 Purchase COWN
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09/30/97 Partners PAL 6,000 $12.4375 Purchase COWN
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09/30/97 Partners ZPG 5,000 $12.4375 Purchase COWN
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09/30/97 Partners ILL10 13,000 $12.4375 Purchase COWN
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10/01/97 Partners BVF 22,000 $12.2500 Purchase COWN
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10/01/97 Partners BVF 6,000 $12.4063 Purchase INET
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10/01/97 Partners BVF 10,000 $12.3750 Purchase HMQT
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10/01/97 Partners BVF Ltd. 18,000 $12.2500 Purchase COWN
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10/01/97 Partners BVF Ltd 5,000 $12.3750 Purchase HMQT
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10/01/97 Partners PAL 2,000 $12.2500 Purchase COWN
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10/01/97 Partners PAL 3,000 $12.3750 Purchase HMQT
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10/01/97 Partners ZPG 3,000 $12.2500 Purchase COWN
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10/01/97 Partners ZPG 2,000 $12.3750 Purchase HMQT
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10/01/97 Partners ILL10 5,000 $12.2500 Purchase COWN
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10/01/97 Partners ILL10 5,000 $12.3750 Purchase HMQT
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10/02/97 Partners BVF 10,000 $12.0000 Purchase COWN
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10/02/97 Partners BVF 1,000 $12.0000 Purchase INET
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10/02/97 Partners BVF Ltd. 5,000 $12.0000 Purchase COWN
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10/02/97 Partners PAL 3,000 $12.0000 Purchase COWN
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10/02/97 Partners ZPG 2,000 $12.0000 Purchase COWN
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10/02/97 Partners ILL10 5,000 $12.0000 Purchase COWN
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10/03/97 Partners BVF 5,000 $12.0313 Purchase INET
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10/03/97 Partners BVF 60,000 $12.0625 Purchase COWN
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10/03/97 Partners BVF 1,000 $12.0625 Purchase INET
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10/03/97 Partners BVF Ltd. 40,000 $12.0625 Purchase COWN
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COWN = Cowen & Co.
HMQT = Hambrecht, Quist
INET = Instinet
</TABLE>
