<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ACCOMPANYING BALANCE SHEETS OF ORPHAN MEDICAL, INC. AS OF DECEMBER 31, 1996, AND
THE RELATED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1996 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                       3,927,945
<SECURITIES>                                12,779,961
<RECEIVABLES>                                  151,185
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                            16,894,161
<PP&E>                                         336,991
<DEPRECIATION>                                  80,957
<TOTAL-ASSETS>                              17,150,599
<CURRENT-LIABILITIES>                        2,355,268
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        60,561
<OTHER-SE>                                  14,734,770
<TOTAL-LIABILITY-AND-EQUITY>                17,150,599
<SALES>                                         36,681
<TOTAL-REVENUES>                                     0
<CGS>                                           10,446
<TOTAL-COSTS>                                   10,446
<OTHER-EXPENSES>                             8,502,098
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                            (858,679)
<INCOME-PRETAX>                             (7,617,184)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                         (7,617,184)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                (7,617,184)
<EPS-PRIMARY>                                    (1.43)
<EPS-DILUTED>                                    (1.43)