<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)