<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from 10-QSB and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 000946486 <NAME> Discovery Laboratories, Inc. <MULTIPLIER> 1 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-START> JAN-01-1999 <PERIOD-END> SEP-30-1999 <EXCHANGE-RATE> 1 <CASH> 1,688,000 <SECURITIES> 1,405,000 <RECEIVABLES> 53,000 <ALLOWANCES> 0 <INVENTORY> 575,000 <CURRENT-ASSETS> 3,734,000 <PP&E> 604,000 <DEPRECIATION> (166,000) <TOTAL-ASSETS> 4,190,000 <CURRENT-LIABILITIES> 542,000 <BONDS> 0 <PREFERRED-MANDATORY> 2,430,000 <PREFERRED> 2,000 <COMMON> 9,000 <OTHER-SE> 1,207,000 <TOTAL-LIABILITY-AND-EQUITY> 4,190,000 <SALES> 0 <TOTAL-REVENUES> 0 <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 827,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (723,000) <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (723,000) <EPS-BASIC> (0.09) <EPS-DILUTED> (0.09)