Accumulated			Note
	Common stock			Additional						other			receivable			Treasury						Total
	Number			paid-in			Accumulated			comprehensive			from			stock,			Deferred			stockholders'
(in thousands, except share data)	of shares	Amount		capital			deficit			income			officer			at cost			compensation			equity
Balance, January 1, 1996	6,793,065	$	68	$	38,121		$	(19,947	)	$	–		$	(139	)	$	–		$	(330	)	$	17,773
Comprehensive income
Net income for the year								5,073															5,073
Unrealized gain on
available-for-sale securities											62												62
Total comprehensive income																						$	5,135
Issuance of common stock in follow-on
public offering at $20.00* per share,
net of offering costs	2,300,000		23		42,880																		42,903
Other issuances of common stock	226,595		2		7,679																		7,681
Three-for-two stock split	4,659,830		47		(47	)																	–
Equity proceeds from Gell Pharmaceuticals
relating to the put option					1,076																		1,076
Amortization of stock option compensation					1,171																		1,171
Amortization of deferred compensation																				128			128
Reduction in notes receivable on
common stock														10									10
Balance, December 31, 1996	13,979,490	$	140	$	90,880		$	(14,874	)	$	62		$	(129	)	$	–		$	(202	)	$	75,877
Comprehensive loss
Net loss for the year								(11,437	)														(11,437	)
Other comprehensive income
Unrealized gain on
available-for-sale securities											364												364
Total comprehensive loss																						$	(11,073	)
Issuance of common stock in follow-on
public offering at $20.00* per share,
net of offering costs	3,737,500		37		70,429																		70,466
Other issuances of common stock	1,670,956		17		22,911															(331	)		22,597
Purchase of 35,547 shares of common stock																	(878	)					(878	)
Amortization of stock option compensation					985																		985
Amortization of deferred compensation																				251			251
Reduction in notes receivable on
common stock														69									69
Balance, December 31, 1997	19,387,946	$	194	$	185,205		$	(26,311	)	$	426		$	(60	)	$	(878	)	$	(282	)	$	158,294
Comprehensive loss
Net loss for the year								(29,698	)														(29,698	)
Other comprehensive income
Unrealized gain on
available-for-sale securities											450												450
Total comprehensive loss																						$	(29,248	)
Issuances of common stock	206,370		2		1,485															(191	)		1,296
Purchase of 41,677 shares of common stock																	(521	)					(521	)
Stock option compensation			449																				449
Amortization of deferred compensation																				109			109
Balance, December 31, 1998	19,594,316	$	196	$	187,139		$	(56,009	)	$	876		$	(60	)	$	(1,399	)	$	(364	)	$	130,379
*Per share prices are pre-stock split
See accompanying notes to consolidated financial statements.