FORM 3 U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 20(f) of the Investment Company Act of 1949
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1. Name and Address of Reporting Person
Rosenwald, Lindsay A., M.D.
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(Last) (First) (Middle)
787 Seventh Avenue, 48th Floor
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(Street)
New York NY 10019
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(City) (State) (Zip)
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2. Date of Event Requiring Statement (Month/Day/Year)
11/25/97
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Issuer Name and Ticker or Trading Symbol
Discovery Laboratories, Inc. ("Discovery")
DSCO
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5. Relationship of Reporting Person to Issuer
(Check all applicable)
[ ] Director [X] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
_________________________________
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6. If Amendment, Date of Original (Month/Day/Year)
12/5/97
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Table I -- Non-Derivative Securities Beneficially Owned
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<TABLE>
<CAPTION>
1. Title of Security 2. Amount of Securities 3. Ownership Form: 4. Nature of Indirect Beneficial Ownership
(Instr. 4) Beneficially Owned Direct (D) or (Instr.5)
(Instr. 4) Indirect (I)
(Instr. 5)
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<S> <C> <C> <C>
Common Stock 153,437 D See Footnote 1.
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Common Stock 1,001,739 I See Footnote 2 (By RAQ, LLC).
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Common Stock 144,474 I See Footnote 2 (By Aries Domestic).
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Common Stock 337,107 I See Footnote 2 (By Aries Trust).
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
Page 1 of 3
<PAGE>
Table II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
<TABLE>
<CAPTION>
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1. Title of Derivative 2. Date Exercisable 3. Title and Amount of Securities 4. Conver- 5. Ownership 6. Nature of
Security (Instr. 4) and Expiration Date Underlying Derivative Security sion or Form of Indirect
(Month/Day/Year) (Instr. 4) Exercise Derivative Beneficial
---------------------- --------------------------------- Price of Security: Ownership
Date Expira- Title Amount Derivative Direct (Instr. 5)
Exer- tion or Security (D) or
cisable Date Number Indirect
of (I)
Shares (Instr.5)
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<S> <C> <C> <C> <C> <C> <C> <C>
Common
Non-Statutory Stock Options 5/1/94 5/1/04 Stock 111 $ 0.87 D
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Common
Common Placement Warrants 11/15/96 11/15/06 Stock 30,665 $ 0.64 D
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Series B
Series B Convertible Convt.
Preferred Stock Warrants 11/15/96 11/15/06 Preferred
Stock 78,798 $11.00 D
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Common See Footnote
Common Placement Warrants 11/15/96 11/15/06 Stock 8,756 $ 0.64 I 2 (By Aries).
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Series B
Series B Convertible Convt.
Preferred Stock Warrants 11/15/96 11/15/06 Preferred See Footnote
Stock 22,500 $11.00 I 2 (By Aries).
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Series B Convertible Common See Footnote
Preferred Stock 11/25/97 N/A Stock 385,265 $ 6.42 I 3 (By Aries).
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Series B Convertible Common
Preferred Stock 11/25/97 N/A Stock 122,659 $ 6.42 D
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</TABLE>
Explanation of Responses:
(1) Consists of (i) 111 shares of Common Stock issuable on the exercise of
outstanding options, (ii) 30,665 shares of Common Stock issuable on the exercise
of warrants and (iii) 122,659 shares of Common Stock issuable on conversion of
Series B Convertible Preferred Stock issuable on the exercise of warrants.
Page 2 of 3
<PAGE>
(CONTINUED)
Table II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
<TABLE>
<CAPTION>
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5. Owner-
3. Title and Amount of Securities ship
Underlying Derivative Security Form of
2. Date Exercisable (Instr. 4) Derivative
and Expiration Date --------------------------------- 4. Conver- Security:
(Month/Day/Year) Amount sion or Direct 7. Nature of
---------------------- or Exercise (D) or Indirect
Date Expira- Number Price of Indirect Beneficial
1. Title of Derivative Exer- tion of Derivative (I) Ownership
Security (Instr. 4) cisable Date Title Shares Security (Instr.5) (Instr. 5)
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<S> <C> <C> <C> <C> <C> <C> <C>
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</TABLE>
Explanation of Responses:
(2) The Reporting Person is the Chairman, President and sole stockholder of
Paramount Capital Asset Management, Inc. ("PCAM"). PCAM is the general partner
of the Aries Domestic Fund, L.P. ("Aries Domestic") and the investment manager
of The Aries Fund, a Cayman Island Trust ("Aries Fund" and, together with Aries
Domestic, "Aries"). The Reporting Person disclaims beneficial ownership of the
securities held by Aries Domestic and Aries Trust, except to the extent of his
pecuniary interest therein, if any. As a consequence of these relationships,
each of the Reporting Person and PCAM may be deemed to share beneficial
ownership of the Common Stock and Series B Preferred Stock beneficially owned by
Aries. The Reporting Person is also the Managing Member of RAQ, LLC and,
accordingly, may be deemed to have beneficial ownership of the Common Stock
beneficially owned by RAQ, LLC. The Reporting Person disclaims beneficial
ownership of any securities issuable upon exercise of warrants granted to
employees of Paramount Capital, Incorporated ("Paramount Capital").
(3) Includes 22,500 shares of Series B Convertible Preferred Stock issuable on
the exercise of warrants.
/s/ Lindsay A. Rosenwald February 13, 1998
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**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient,- See Instruction 6 for procedure.
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