PERIOD FROM
                                                                                     COMMENCEMENT OF
                                                                                     OPERATIONS (JULY
                                                           SIX MONTHS ENDED JUNE 30,   25, 1991) TO
                                                           -------------------------
                                                              1996           1997      JUNE 30, 1997
                                                           ----------     ----------   -------------

CASH FLOWS FROM OPERATING ACTIVITIES
   Net loss                                              $ (6,100,363)  $ (8,941,489)  $(53,041,391)
   Adjustments to reconcile net loss to net cash used
  in operating activities
  Amortization and depreciation                               222,417        245,576      1,308,767
  Issuance of common stock to acquire technology                  -        5,500,000      5,500,000
  Accrued license fee to acquire technology                       -        2,000,000      2,000,000
  Loss (gain) on sale of equipment                                          (218,654)      (218,654)
  Accretion of discount on indebtedness                     1,407,579            -        2,290,910
  Equity in loss of Ansan, Inc.                               355,489        501,825      1,957,911
  Other                                                        (9,626)           -          (35,653)
  Issuance of common stock to acquire
    minority interest of Theracell, Inc.                          -              -          686,000
  Changes in operating assets and liabilities:
    Prepaid expenses and other current assets                 (38,902)       (22,765)      (216,089)
    Receivable - Ansan, Inc.                                  (24,660)       (71,419)      (189,300)
    Other assets                                              (28,108)       152,564        (52,231)
    Accounts payable                                           66,980        420,491      1,347,663
    Other accrued liabilities                              (1,124,651)       390,366      1,865,531
                                                         ------------   ------------   ------------
Net cash used in operating activities                      (5,273,845)       (43,505)   (36,796,536)
                                                         ------------   ------------   ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of furniture and equipment                         (63,641)       (51,718)    (1,124,077)
  Purchases of short-term investments                     (10,261,502)      (100,000)   (59,782,493)
  Proceeds from sales of short-term investments             3,750,000     12,600,000     59,282,493
  Issuance of debenture to Ansan Pharmaceuticals, Inc.            -       (1,000,000)    (1,000,000)
  Effect of deconsolidation of Ansan, Inc.                        -              -         (135,934)
                                                         ------------   ------------   ------------
Net cash provided by (used in) investing activities        (6,575,143)    11,448,282     (2,760,011)
                                                         ------------   ------------   ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Issuance of common stock                                 16,357,887          2,998     30,028,760
  Offering costs                                               (2,483)           -              -
  Deferred financing costs                                        -           46,349       (763,899)
  Issuance of preferred stock                                     -              -       17,601,443
  Proceeds from notes payable and advances payable                -              -        2,681,500
  Repayment of notes payable                                      -              -       (1,441,500)
  Proceeds for Ansan bridge financing                             -              -        1,425,000
  Proceeds from Titan and Ingenex bridge financing                -              -        5,250,000
  Repayment of Titan and Ingenex bridge financing          (5,250,000)           -       (5,250,000)
  Proceeds from capital lease                                     -              -          658,206
  Payments of principal under capital lease obligation       (108,887)      (127,462)      (633,766)
  Proceeds from Ingenex, Inc. technology financing                -              -        2,000,000
  Principal payments on Ingenex, Inc.
    technology financing                                     (238,155)    (1,289,313)    (2,000,000)
  Increase in minority interest from issuances of
  preferred stock by Ingenex, Inc.                                -              -        1,241,032
  Issuance of common stock by subsidiaries                      9,853            -          173,652
                                                         ------------   ------------   ------------
Net cash provided by (used in) financing activities        10,768,215     (1,367,428)    50,970,428
                                                         ------------   ------------   ------------

Net increase (decrease) in cash and cash equivalents         (880,773)    10,037,349     11,413,881
Cash and cash equivalents, beginning of period                947,805      1,376,532            -
                                                         ------------   ------------   ------------
Cash and cash equivalents, end of period                 $     67,032   $ 11,413,881   $ 11,413,881
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