UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13G

o

Rule 13d-1(b)

x

Rule 13d-1(c)

o

Rule 13d-1(d)

CUSIP No.  254668106

1.

Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only)
Capital Ventures International

2.

Check the Appropriate Box if a Member of a Group (See Instructions)

(a)

o

(b)

o

3.

SEC Use Only

4.

Citizenship or Place of Organization
Cayman Islands

Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With

5.

Sole Voting Power
4,333,007 (1)

6.

Shared Voting Power
4,333,007 (1)

7.

Sole Dispositive Power
4,333,007 (1)

8.

Shared Dispositive Power
4,333,007 (1)

9.

Aggregate Amount Beneficially Owned by Each Reporting Person
4,333,007 (1)

10.

Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)  o

11.

Percent of Class Represented by Amount in Row (9)
6.2% (2)

12.

Type of Reporting Person (See Instructions)
CO

1.

Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only)
Heights Capital Management, Inc.

2.

Check the Appropriate Box if a Member of a Group (See Instructions)

(a)

o

(b)

o

3.

SEC Use Only

4.

Citizenship or Place of Organization
Delaware

Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With

5.

Sole Voting Power
0

6.

Shared Voting Power
4,333,007 (1)

7.

Sole Dispositive Power
0

8.

Shared Dispositive Power
4,333,007 (1)

9.

Aggregate Amount Beneficially Owned by Each Reporting Person
4,333,007 (1)

10.

Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)  o

11.

Percent of Class Represented by Amount in Row (9)
6.2% (2)

12.

Type of Reporting Person (See Instructions)
CO

Item 1.

(a)

Name of Issuer
Discovery Laboratories, Inc.  (the “Company”)

(b)

Address of Issuer’s Principal Executive Offices
2600 Kelly Road, Suite 100, Warrington, PA  18976

Item 2.

(a)

Name of Person Filing
(1) Capital Ventures International (a “Reporting Person”)
(2) Heights Capital Management, Inc. (a “Reporting Person”)

(b)

Address of Principal Business Office or, if none, Residence
(1) One Capitol Place, P.O. Box 1787 GT, Grand Cayman, Cayman Islands, B.W.I.
(2) 101 California Street, Suite 3250, San Francisco, California 94111

(c)

Citizenship
(1) Cayman Islands
(2) Delaware

(d)

Title of Class of Securities
Common Stock, $.001 par value per share, of the Company (“Common Stock”)

(e)

CUSIP Number
254668106

Item 3.

If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:

(a)

o

Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).

(b)

o

Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).

(c)

o

Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).

(d)

o

Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C 80a-8).

(e)

o

An investment adviser in accordance with §240.13d-1(b)(1)(ii)(E);

(f)

o

An employee benefit plan or endowment fund in accordance with §240.13d-1(b)(1)(ii)(F);

(g)

o

A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);

(h)

o

A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);

(i)

o

A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);

(j)

o

Group, in accordance with §240.13d-1(b)(1)(ii)(J).

Item 4.

Ownership

Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.

(1)

Capital Ventures International

(a)

Amount beneficially owned:   

4,333,007 (1)

(b)

Percent of class:   

6.2%

(c)

Number of shares as to which the person has:

(i)

Sole power to vote or to direct the vote   

4,333,007 (1)

(ii)

Shared power to vote or to direct the vote    

4,333,007 (1)

(iii)

Sole power to dispose or to direct the disposition of   

4,333,007 (1)

(iv)

Shared power to dispose or to direct the disposition of   

4,333,007 (1)

(2)

Heights Capital Management, Inc.

(a)

Amount beneficially owned:   

4,333,007 (1)

(b)

Percent of class:   

6.2%

(c)

Number of shares as to which the person has:

(i)

Sole power to vote or to direct the vote   

0

(ii)

Shared power to vote or to direct the vote    

4,333,007 (1)

(iii)

Sole power to dispose or to direct the disposition of   

0

(iv)

Shared power to dispose or to direct the disposition of   

4,333,007 (1)

Item 5.

Ownership of Five Percent or Less of a Class

If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following   o.

Item 6.

Ownership of More than Five Percent on Behalf of Another Person

Not applicable

Item 7.

Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company or Control Person

Not applicable

Item 8.

Identification and Classification of Members of the Group

Not applicable

Item 9.

Notice of Dissolution of Group

Not applicable

Item 10.

Certification

By signing below, I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

Date:

February 12, 2007

Capital Ventures International

By:  Heights Capital Management, Inc., pursuant to a Limited Power of Attorney, a copy of which is filed as Exhibit A hereto.

By:

/s/ Todd Silverberg

Todd Silverberg, Secretary

Heights Capital Management, Inc.

By:

/s/ Todd Silverberg

Todd Silverberg, Secretary

EXHIBIT

DESCRIPTION

A

Limited Power of Attorney

B

Joint Filing Agreement, dated November 30, 2006, pursuant to Rule 13d-1(k) between Capital Ventures International and Heights Capital Management, Inc.

THE COMMON SEAL OF

CAPITAL VENTURES INTERNATIONAL

/s/ Ian A.N. Wight

was hereunto affixed in the presence of:

Ian A.N. Wight

(Director)

/s/ Woodburne Associates

Woodburne Associates

(Cayman) Limited

Secretary

Date: November 30, 2006

Capital Ventures International

By:  Heights Capital Management, Inc.
pursuant to a Limited Power of Attorney, a
copy of which is filed as Exhibit A to the
Schedule 13G

By:

/s/ Todd Silverberg

Todd Silverberg, Secretary

Date:  November 30, 2006

Heights Capital Management, Inc.

By:

/s/ Todd Silverberg

Todd Silverberg, Secretary