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FORM 5
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[ ] Check this box if no longer subject of Section 16.
Form 4 or Form 5 obligations may continue. See Instruction 1(b).
[X] Form 3 Holdings Reported
[ ] Form 4 Transactions Reported
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
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 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person
The Aries Fund, a Cayman Island Trust
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(Last) (First) (Middle)
c/o MeesPierson (Cayman) Limited,
P.O. Box 2003, British American
Centre, Phase 3, Dr. Roy's Drive
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(Street)
George Town, Grand Cayman
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Discovery Laboratories, Inc.
DSCO
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
December 1997
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person to Issuer
(Check all applicable)
[ ] Director [X] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
____________________________________________________________________
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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<TABLE>
<CAPTION>
5. 6.
4. Amount of Owner-
Security Acquired (A) or Securities ship
Disposed of (D) Beneficially Form: 7.
(Instr. 3, 4 and 5) Owned at End Direct Nature of
2. 3. ----------------------------- of Issuer's (D) or Indirect
1. Transaction Transaction Amount (A) Price Fiscal Year Indirect Beneficial
Title of Security Date Code or (Instr. 3 (I) Ownership
(Instr. 3) (Month/Day/Year) (Instr. 8) (D) & 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock 11/25/97 J(1)(2) 337,107 A (1) 337,107 D
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Print or type Responses)
<PAGE>
FORM 5 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
<TABLE>
<CAPTION>
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Title of Conver- Trans- Trans- Number of Date Title and Amount Price Number Owner- Nature
Derivative sion action action Derivative Exercisable and of Underlying of of ship of
Security or Date Code Securities Expiration Date Securities Deriv- Deriv- of In-
(Instr. 3) Exer- (Month/ (Instr. Acquired (A) (Month/Day/Year) (Instr. 3 and 4) ative ative Deriv- direct
cise Day/ 8) or Disposed ---------------- ---------------- Secur- Secur- ative Bene-
Price Year) of (D) Date Expira- Title Amount ity ities Secur- ficial
of (Instr. 3, Exer- tion or (Instr. Bene- ity: Owner-
Deriv- 4 and 5) cisable Date Number 5) ficially Direct ship
ative ------------ of Owned (D) or (Instr.
Secur- (A) (D) Shares at End In- 4)
ity of direct
Year (I)
(Instr. (Instr.
4) 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Series B Convertible Common
Preferred Stock $6.42 11/25/97 J(1)(3) 173,250 11/25/97 N/A Stock 269,686 (1) 173,250 D
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Common Stock Common
Warrants $0.64 11/15/96 J(4) 6,129 5/15/97 11/15/06 Stock 6,129 (1) 6,129 D
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Series B
Series B Convert-
Convertible ible
Preferred Stock Preferred
Warrants $11.00 11/15/96 J(4) 15,750 5/15/97 11/15/06 Stock 15,750 (1) 15,750 D
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</TABLE>
Explanation of Responses:
(1) Securities acquired pursuant to the statutory merger (the "Merger") of
Discovery Laboratories, Inc., a former Delaware corporation ("Old Discovery")
with and into the Issuer (f/k/a Ansan Pharmaceuticals, Inc.). Pursuant to the
Merger, securities of Old Discovery held by the Reporting Person were converted
into securities of the Issuer. The securities of Old Discovery surrendered by
the Reporting Person in the Merger constituted the consideration for the
securities of the Issuer issued to the Reporting Person in the Merger. The
securities of Old Discovery were not listed on a securities exchange or quoted
on an inter-dealer quotation system and, accordingly, the Issuer is unable to
determine the value of such consideration as of the date of the Merger.
(2) Includes 269,686 shares of Common Stock issuable upon conversion of Series B
Convertible Preferred Stock (including Series B Convertible Preferred Stock
issuable upon exercise of Series B Convertible Preferred Stock Warrants) and
6,129 shares of Common Stock issuable upon exercise of Common Stock Warrants.
(3) Includes 15,750 shares of Series B Convertible Preferred Stock issuable upon
exercise of Series B Convertible Preferred Stock Warrants.
(4) The Common Stock Warrants and Series B Convertible Preferred Stock Warrants
were issued to the Reporting Person in connection with a private placement of
equity securities of Old Discovery in which an affiliate of the Reporting Person
acted as placement agent. The Common Stock Warrants and Series B Convertible
Preferred Stock Warrants were assumed by the Issuer in the Merger.
/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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