NEXSTAR PHARMACEUTICALS INC
424B3, 1998-08-31
PHARMACEUTICAL PREPARATIONS
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                     SUPPLEMENT NO. 5 DATED AUGUST 31, 1998
                       TO PROSPECTUS DATED OCTOBER 6, 1997
                                   RELATING TO
         $80,000,000 6 1/4% CONVERTIBLE SUBORDINATED DEBENTURES DUE 2004
                    INTEREST PAYABLE FEBRUARY 1 AND AUGUST 1
           AND SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF

         All  capitalized  terms  used but not  defined  herein  shall  have the
meanings  set forth in the  Prospectus  dated  October 10, 1997,  as  previously
supplemented (the "Prospectus"), forming a part of the Registration Statement on
Form S-3 (Registration No.  333-35827).  Any cross references in this Supplement
refer to portions of the Prospectus.

         The purpose of this  Supplement  is to provide  additional  information
regarding   the   Selling   Securityholders.   In   addition   to  the   Selling
Securityholders named in the Prospectus, the following table sets forth the name
of each additional  Selling  Securityholder  and relationship,  if any, with the
Company  and (i) the  amount  of  Debentures  owned by each  additional  Selling
Securityholder  as of August 31, 1998  (subject to the  qualification  set forth
below),  (ii) the  maximum  amount of  Debentures  which may be offered  for the
account of such additional Selling  Securityholder  under the Prospectus,  (iii)
the amount of Common Stock owned by each additional Selling Securityholder as of
August  31,  1998,  and (iv) the  maximum  amount of Common  Stock  which may be
offered for the account of such Selling Securityholder under the Prospectus.

<TABLE>
<CAPTION>



                                                                                   Shares of
                                                           Principal Amount        Common Stock
                                Principal Amount           of Debentures           Owned  Prior     Shares of Common
   Name    of     Selling       of Debentures Owned        Offered Hereby          to Offering(1)   Stock Offered Hereby(1)
   ---------------------------  -------------------            -----                 --------          --------------
   Securityholder                                                                                   
   --------------                                                                                 
<S>    <C>                         <C>                    <C>                     <C>                  <C>    
NHBD LP3.....................      2,250,000              2,250,000               133,333              133,333
Total........................     $2,250,000              $2,250,000                  N/A              133,333
                                  ==========              ==========                  ===              =======
- -----------------------
</TABLE>


(1)    Includes  the shares of Common  Stock into which the  Debentures  held by
       such Selling  Securityholder  are  convertible at the initial  conversion
       price.  The  conversion  price and the  number of shares of Common  Stock
       issuable  upon  conversion  of the  Debentures  are subject to adjustment
       under certain circumstances.  See "Description of Debentures - Conversion
       Rights." Accordingly,  the number of shares of Common Stock issuable upon
       conversion of the  Debentures may increase or decrease from time to time.
       Fractional  shares will not be issued upon  conversion of the Debentures;
       rather, cash will be paid in lieu of fractional shares, if any.

(2)    Includes  $250,000  aggregate  principal  amount of Debentures which were
       included in Supplement No. 3 to the Prospectus dated October 6, 1998.

         Because the Selling  Securityholder  may,  pursuant to this Prospectus,
offer all or some portion of the Debentures and Common Stock it presently  holds
or, with respect to Common  Stock,  has the right to acquire upon  conversion of
such Debentures, no estimate can be given as to the amount of the Debentures and
Common Stock that will be held by the Selling Securityholder upon termination of
any such sales. In addition,  the Selling  Securityholder  identified  above may
have  sold,  transferred  or  otherwise  disposed  of  all or a  portion  of its
Debentures and Common Stock since the date on which it provided the  information
regarding its  Debentures  and Common  Stock,  in  transactions  exempt from the
registration   requirements  of  the  Securities  Act  of  1933.  See  "Plan  of
Distribution."



<PAGE>


         The Company may from time to time, in accordance with the  Registration
Rights  Agreement,   include  additional   Selling   Securityholders  in  future
supplements to the Prospectus.

         The  Selling  Securityholder  listed  above  did not have any  material
relationship  with the  Company  other  than as a  result  of  ownership  of the
Debentures, within the three-year period ending on the date of this Prospectus.




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