Business Description

     We are a biopharmaceutical company focused on the discovery, in-licensing,
development and commercialization of novel drug candidates for central nervous
system, or CNS, and other disorders, including cardiovascular, that involve
alterations in neuronal processing. We have six product candidates undergoing
clinical development that address therapeutic indications with significant unmet
needs. Our product candidate for insomnia, indiplon, is currently in Phase III
clinical trials, our product candidate for pain, bicifadine, is in a Phase III
program and our product candidate for the treatment of anxiety disorders,
ocinaplon, has completed two Phase II clinical trials. Our sublicensee,
Neurocrine Biosciences, Inc., or Neurocrine, has indicated that it intends to
file a new drug application, or NDA, for indiplon mid-year 2004 for multiple
insomnia indications.

      Indiplon has demonstrated efficacy in nine Phase III clinical trials and
bicifadine has demonstrated efficacy in two pivotal registration studies one of
which was a Phase III clinical trial. A Phase III clinical development program
and NDA registration strategy for bicifadine have been agreed upon with the FDA,
and it is anticipated that two pivotal Phase III studies will be initiated in
the third quarter of 2004. Ocinaplon has demonstrated efficacy in two Phase II
clinical trials. The start of a Phase III pivotal trial for ocinaplon, initially
scheduled to begin in 2003, was placed on hold by the FDA in October 2003
pending receipt by the FDA of satisfactory additional safety information. We
submitted a response to the FDA and requested that the FDA lift the clinical
hold and on March 30, 2004 we received an informal communication from the FDA
informing us that it will require additional time to review supplemental data we
will have to submit.

      We recently completed a Phase I clinical trial for our proprietary
formulation of diltiazem, DOV diltiazem, and we are currently finalizing the
clinical plan for its further development which we intend to submit to the FDA
for approval in the first half of 2004. We intend then to evaluate strategic
alternatives for DOV diltiazem’s Phase III clinical development. Our lead
product candidate for the treatment of depression, DOV 216,303, is currently in
a Phase II clinical trial and our second product candidate for depression, DOV
21,947, is in Phase I clinical development. We also have two compounds in
preclinical development, DOV 102,677, for the treatment of Parkinson's disease,
restless leg syndrome, attention deficit disorder and DOV 51,892, for anxiety
disorders including panic. Based upon preclinical pharmacological data, we
intend to move these product candidates into clinical testing in the second half
of 2004.

      Our core scientific expertise is in the cellular and molecular
pharmacology underlying neurotransmission. Our senior management team has
substantial experience in CNS drug discovery and development. During their
careers, they have participated in the discovery and development of new drugs
that have been successfully brought to market.

     To enhance our drug development and commercialization efforts, we have
sublicensed indiplon to Neurocrine, which entered into a development and
commercialization agreement with Pfizer, Inc., or Pfizer, in December 2002. We,
together with Neurocrine and Wyeth (formerly American Cyanamid Company), have
entered into an agreement with Pfizer, granting certain rights to Pfizer under
our sublicense agreement with Neurocrine.