Coulter Pharmaceutical, Inc.
Ticker:CLTR 550 California Avenue, Suite 200
Exchange:NASDAQ-National Market Palo Alto, CA 94306
Industry:Manufacturing (SIC Code 2034) (415) 842-7300

Offering Information
Type of Shares:Common Shares Filing Date:12/11/96
U.S. Shares:2,500,000 Offer Date:1/28/97
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:2,500,000 Offer Price:$12.00
Secondary Shares:0 Gross Spread:$0.84
Offering Amount: $32,500,000 Selling:$0.49
Expenses:$665,000 Reallowance:$0.10
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Hambrecht & Quist IncorporatedLead Manager (415) 439-3626
Alex. Brown & Sons IncorporatedCo-manager (410) 895-2700
Pacific Crest Securities Inc.Co-manager (503) 790-0293

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Cooley Godward Castro Huddleson & Tatum
Bank's Law Firm: Wilson, Sonsini, Goodrich & Rosati

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 9/30/96 9/30/95 9/30/96
Revenue:$2.74$9.90$1.69Assets:$20.48
Net Income:-$3.23-$10.82-$2.03Curr Assets:
EPS:-$1.40Liabilities:$5.68
Prior EPS:Curr Liabilities:
Cash Flow/Oper:Equity:$14.81
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is engaged in the development of novel drugs and therapies for the treatment of people with cancer. The company currently is developing a family of cancer therapeutics based upon two platform technologies. Conjugated antibodies and tumor-activated peptide pro-drugs. The company's most advanced product candidate, the B-1 Therapy, consists of a monoclonal antibody conjugated with a radioisotope. In a Phase I/II clinical trial of the B-1 Therapy, 40 patients with low grade or transformed low-grade non-Hodgkin's lymphoma who had relapsed from previous chemotherapy regimens achieved an 82% overall response rate and a 45% complete response rate. The company has commenced a pivotal Phase II/III clinical trial for the treatment of NHL in low-grade and transformed low-grade patients refractory to chemotherapy. The company intends to file for U.S. Food and Drug Administration marketing approval of its B-1 Therapy for this indication in the second half of 1998. The company believes that the B-1 Therapy, if successfully developed, could become the first radiommunotherapy approved in the United States for the treatment of people with cancer. The company's TAP pro-drug program is designed to broaden significantly the therapeutic windows of conventional chemotherapies. The company currently is developing a pro-drug version of doxorubicin to treat certain solid tumor cancers with the objective of commencing clinical trials in early 1998.

Competition
The pharmaceutical and biotechnology industries are intensely competitive. Any product candidate developed by the company would compete with existing drugs and therapies. There are many pharmaceutical companies, biotechnology companies, public and private universities and research organizations actively engaged in research and development of products for the treatment of people with cancer. Many of these organizations have financial, technical, manufacturing and marketing resources greater than those of the company. Several of them have developed or are developing therapies that could be used for treatment of the same diseases targeted by the company. The company believes that competition in the development and marketing of new cancer therapies will be based primarily on product efficacy and safety, time to market and price. To the extent the company's product programs are successful, it also intends to rely to some degree on patents and other intellectual property and orphan drug designations to protect its products from competition. The company believes that its product development programs will be subject to significant competition from companies utilizing alternative technologies as well as to increasing competition from companies that develop and apply technologies similar to the company's technologies. Other company's may succeed in developing products earlier than the company, obtaining approvals for such products from the FDA more rapidly than the company or developing products that are safer and more effective than those under development or proposed to be developed by the company. There can be no assurance that research and development by others will not render the company's technology or potential products obsolete or non-competitive or result in treatments superior to any therapy developed by the company, or that any therapy developed by the company will be preferred to any existing or new developed technologies.

Business Plan
The company's goal is to develop and commercialize novel drugs and drug therapies for the treatment of people with cancer based on selected insights from the emerging understanding of the molecular biology of malignant cells. Based on this foundation, the company has established a strategy comprised of the following primary elements: (i) Pursue Expedited Initial Approval of the B-1 Therapy, (ii) Establish Sales and Marketing Capability, (iii) Leverage Existing Technology Platforms, (iv) Leverage Development Expertise and (v) Utilize Contract Manufacturers.

Use of Proceeds
The proceeds from the proposed offering will be used for funding of clinical trials, manufacturing, initial pre launch marketing of the B-1 Therapy, and for research and development, working capital and general corporate purposes.

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