<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLY FINANCIAL STATEMENTS OF INHALE THERAPEUTIC SYSTEMS, INC. AS FILED ON
FORM 10Q FOR THE PERIOD ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               MAR-31-1999
<CASH>                                          18,023
<SECURITIES>                                    55,553
<RECEIVABLES>                                    2,435
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                76,807
<PP&E>                                          64,201
<DEPRECIATION>                                 (9,752)
<TOTAL-ASSETS>                                 131,349
<CURRENT-LIABILITIES>                           14,657
<BONDS>                                          4,925
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       172,920
<OTHER-SE>                                    (62,142)
<TOTAL-LIABILITY-AND-EQUITY>                   131,349
<SALES>                                              0
<TOTAL-REVENUES>                                 7,780
<CGS>                                                0
<TOTAL-COSTS>                                   13,980
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                (5,223)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (5,223)
<EPS-PRIMARY>                                   (0.31)
<EPS-DILUTED>                                   (0.31)