Connective Therapeutics, Inc.
Ticker: CNCT 3400 West Bayshore Road
Exchange: NASDAQ-National Market Palo Alto, California 94303
Industry: Manufacturing (415) 843-2800

Type of Shares:Common Shares Filing Date:12/11/95
U.S. Shares:2,500,000 Offer Date:1/31/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,500,000 Offer Price:$11.00
Secondary Shares:0 Gross Spread:$0.77
Offering Amount: $30,000,000 Selling:$0.46
Expenses:$900,000 Reallowance:$0.10
Shares Out After:7,373,648

ManagerTierPhone
Smith Barney Inc.Lead Manager (718) 921-8473
Dillon, Read & Co. Inc.Co-manager (212) 906-7000
Punk, Ziegel & KnoellCo-manager (212) 308-9494

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 12/31/95
Revenue:$0.00Assets:$11.80
Net Income:-$10.37Liabilities:$11.73
EPS:-$1.79Equity:$0.06

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is focused on the development of therapeutics to address serious diseases involving the connective tissues of the body. Connective tissues are components of the body that form structural or binding elements such as skin, ligaments and lining of organs, and form the three-dimensional structure that allows cells to function normally. The indications or conditions initially addressed by the company include atopic dermatitis, keloids, scleroderma, multiple sclerosis, organ fibrosis and rheumatoid arthritis. Although individually these diseases have been the subject of various independent research programs, no concentrated effort has been aimed at developing this market segment as a whole, representing significant and currently underserved market opportunities.

Use of Proceeds
The proceeds from the offering will be used to fund clinical development and manufacturing, preclinical research, the repayment of debt, working capital, working capital and other general corporate purposes.

Last updated: 10/28/96

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