FORM 4
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
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
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person
Tsai, Huei
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(Last) (First) (Middle)
53 Worth Mills Lane
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(Street)
Princeton, New Jersey 08540
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Discovery Laboratories, Inc. (Discovery)
DSCO
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
August 1998
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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 [ ] 10% Owner
[X] Officer (give title below) [ ] Other (specify below)
Vice President
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7. Individual or Joint/Group Filing (Check Applicable Line)
[X] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
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Common Stock 8/6/98 P 1,000 A $2.50 127,851(1),(2) D
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Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
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FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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9. 10.
Number Owner-
of ship
2. Deriv- of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
of Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 5) 5)
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Explanation of Responses:
(1) Includes 14,813 shares of Discovery Common Stock issuable on the exercise of
outstanding options granted on March 5, 1998 and 39,638 shares of Discovery
Common Stock issuable on the exercise of outstanding options granted on June 16,
1998, all of which are immediately exercisable. Shares of Discovery Common Stock
subject to such options vest in three equal annual installments beginning with
the first anniversary following June 16, 1998. Unvested shares of Discovery
Common Stock subject to such options remain subject to the Issuer's right to
repurchase at the exercise price paid per share. Also includes 31,200 shares of
Discovery Common Stock issuable on the exercise of outstanding options granted
on February 16, 1997. Shares of Discovery Common Stock subject to such options
vest 25% at the time of grant with the balance vesting in three equal annual
installments upon the optionee's successive completion of service with the
Issuer. Unvested shares of Discovery Common Stock subject to such options remain
subject to the Issuer's right to repurchase at the exercise price paid per
share.
(2) Includes 31,200 shares of Discovery Common Stock owned equally by each of
the Reporting Person's two children. The Reporting Person disclaims beneficial
ownership of such indirectly beneficially owned securities except to the extent
of his pecuniary interest therein.
/s/ Huei Tsai September 8, 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 procedures.
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