Houghten Pharmaceuticals, Inc.
Ticker: HPIP 3550 General Atomics Court
Exchange: NASDAQ-National Market San Diego, California 92121
Industry: Service (619) 455-3814

Type of Shares:Common Shares Filing Date:2/14/96
U.S. Shares:3,300,000 Offer Date:3/29/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:3,300,000 Offer Price:$8.00
Secondary Shares:0 Gross Spread:$0.56
Offering Amount: $39,600,000 Selling:$0.32
Expenses:$600,000 Reallowance:$0.10
Shares Out After:12,591,386

ManagerTierPhone
Dillon, Read & Co. Inc.Lead Manager (212) 906-7000
Hambrecht & Quist IncorporatedCo-manager (415) 576-3423
Salomon Brothers Inc.Co-manager (212) 783-2947

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 12/31/95
Revenue:$1.37Assets:$2.75
Net Income:-$9.49Liabilities:$4.35
EPS:-$1.05Equity:-$1.60

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

Business Description
The company utilizes combinatorial chemistry to pursue the discovery of novel, small molecule drug therapies. Combinatorial chemistry is a technology for the synthesis, identification and optimization of lead compounds that can significantly shorten the time required for, and reduce the costs associated with, drug discovery. HPI currently has nine external discovery collaborations covering 19 molecule targets. HPI has used its molecule diversity tools in internal programs to discover a series of proprietary compounds, the most advanced of which is presently in a Phase II clinical trial. A critical goal for pharmaceutical companies is the rapid and cost effective discovery, development and commercialization of new compounds to treat human diseases. Conventional methods of identifying lead drug candidates have proven costly and time consuming. Combinatorial chemistry directly addresses these inefficiencies present in the traditional drug discovery process.

Use of Proceeds
Proceeds from the proposed offering will be used for research and development expenses, the redemption of the company's Series One Redeemable Preferred Stock and general corporate purposes including working capital.

Last updated: 10/28/96

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