(in thousands)	1998			1997			1996
Cash Flows From Operating Activities:
Net income (loss)	$	(29,698	)	$	(11,437	)	$	5,073
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization		3,575			2,735			1,102
Noncash compensation expense		558			1,236			1,309
Gain on sale of assets		26			—			—
Changes in assets and liabilities:
Accounts receivable, other current assets, and other assets		(1,339	)		(135	)		(94	)
Inventory		51			191			(1,533	)
Accounts payable and other current liabilities		908			3,306			2,110
Net cash provided by (used in) operating activities		(25,919	)		(4,104	)		7,967
Cash Flows From Investing Activities:
Investment in purchases of property and equipment, net		(5,104	)		(6,433	)		(9,101	)
Sale and maturities of marketable securities		100,130			100,457			47,010
Purchases of marketable securities		(84,222	)		(174,453	)		(92,633	)
Net cash provided by (used in) investing activities		10,804			(80,429	)		(54,724	)
Cash Flows From Financing Activities:
Net proceeds from issuances of common stock		1,296			93,063			50,584
Purchase of treasury stock		(521	)		(878	)		—
Proceeds from bond and term loan issuances		—			1,843			7,867
Equity proceeds from Gell Pharmaceuticals Inc.
relating to the put option		—			—			1,076
Payment of notes receivable on common stock		—			69			—
Principal payments on bond and term loan payable		(2,160	)		(1,144	)		(470	)
Net cash provided by (used in) financing activities		(1,385	)		92,953			59,057
Net increase (decrease) in cash and cash equivalents		(16,500	)		8,420			12,300
Cash and cash equivalents at the beginning of period		24,980			16,560			4,260
Cash and cash equivalents at the end of period	$	8,480		$	24,980		$	16,560
Supplemental disclosures of cash flow information:
Net interest paid	$	784		$	828		$	470
See accompanying notes to consolidated financial statements.