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| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| Delaware                                                       |   | 94-3171943                              |
|----------------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification Number) |

| Title of each class             |   | Name of each exchange on which registered |
|---------------------------------|--------|-------------------------------------------|
|                            |   |                                      |
| Common Stock, $0.001 par value  |   | The Nasdaq Capital Market                 |
| Preferred Stock Purchase Rights |   |                                      |

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| Large accelerated filer  o           | Accelerated filer  o         |
|-------------------------------------------|-----------------------------------|
|                                      |                              |
| Non-accelerated filer    o | Smaller reporting company  x |

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Table of Contents to Annual Report on Form 10-K/A

| PART III   |   |                                                                                           |   |
|------------|--------|------------------------------------------------------------------------------------------------|--------|
|       |   |                                                                                           |   |
| ITEM 10.   |   | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                         | 1      |
|       |   |                                                                                           |   |
| ITEM 11.   |   | EXECUTIVE COMPENSATION                                                                         | 6      |
|       |   |                                                                                           |   |
| ITEM 12.   |   | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 12     |
|       |   |                                                                                           |   |
| ITEM 13.   |   | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                      | 13     |
|       |   |                                                                                           |   |
| ITEM 14.   |   | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                         | 14     |
|       |   |                                                                                           |   |
| ITEM 15.   |   | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                     | 15     |
|       |   |                                                                                           |   |
| SIGNATURES | 16     |

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Table of Contents

| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------|--------------------------------------------------------|

| Name                        | Age | Position with the Company                                                |
|-----------------------------|-----|--------------------------------------------------------------------------|
| W. Thomas Amick             | 69  | Director, Chairman of the Board of Directors and Chief Executive Officer |
| Antonio Esteve, Ph.D.       | 54  | Director                                                                 |
| Max E. Link, Ph.D.          | 71  | Director                                                                 |
| Bruce A. Peacock            | 60  | Director                                                                 |
| Marvin E. Rosenthale, Ph.D. | 78  | Director                                                                 |

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Table of Contents

| Name                         | Age | Position with the Company                                            |
|------------------------------|-----|----------------------------------------------------------------------|
| Russell Clayton, D.O.        | 51  | Senior Vice President, Research and Development                      |
| Kathryn A. Cole              | 46  | Senior Vice President, Human Resources                               |
| John G. Cooper               | 53  | President, Chief Financial Officer and Treasurer                     |
| Thomas C. Hoy                | 50  | Vice President, Manufacturing Operations                             |
| Thomas F. Miller, Ph.D., MBA | 41  | Senior Vice President and Chief Operating Officer                    |
| John A. Tattory              | 46  | Vice President, Finance, Controller and Principal Accounting Officer |
| Mary B. Templeton, Esq.      | 65  | Senior Vice President, General Counsel, and Corporate Secretary      |

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Table of Contents

|   | · | overseeing our financial statements, system of internal controls, auditing, accounting and financial reporting processes; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | providing an independent, direct communication between the Board of Directors and internal auditors; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | appointing, compensating, evaluating and, when appropriate, replacing independent auditors; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | overseeing our tax compliance; |
|--------|--------|--------------------------------|

|   | · | reviewing with management and our independent auditors the annual audit plan; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | reviewing the Audit Committee Charter; |
|--------|--------|----------------------------------------|

|   | · | reviewing and pre-approving audit and permissible non-audit services; and |
|--------|--------|---------------------------------------------------------------------------|

|   | · | reviewing and approving all related-party transactions. |
|--------|--------|---------------------------------------------------------|

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Table of Contents

| ITEM 11. | EXECUTIVE COMPENSATION |
|----------|------------------------|

| Name and Principal Position |   | Year   |   | Salary($) |    |   | Bonus($) |   |    | Stock Award($)(1) |   |   | Option Award($) (2) |   |   | All OtherComp.($) |    |   | Total($) |   |
|-----------------------------|--------|--------|--------|-----------|---------|--------|----------|--------|---------|-------------------|--------|--------|---------------------|--------|--------|-------------------|---------|--------|----------|--------|
|                        |   |   |   |      |    |   |     |   |    |              |   |   |                |   |   |              |    |   |     |   |
| W. Thomas Amick             |   | 2011   |   | $         | 400,000 |   |     | $      | 15,000  |              |   | $      | –             |   |   | $                 | 584,200 |   |     | $      | 84,722 | (4) |   | $ | 1,083,922 |   |
| Chairman of the Board and   |   | 2010   |   |      | 330,333 | (3)    |     |   | – |              |   |   | 92,000              |   |   |              | 4,257   |   |     |   | 44,961 | (4) |   |   | 471,551 |   |
| Chief Executive Officer     |   |   |   |      |    |   |     |   |    |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |
|                        |   |   |   |      |    |   |     |   |    |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |
| John G. Cooper              |   | 2011   |   |      | 325,000 |   |     |   | 15,000  |              |   |   | –             |   |   |              | 365,125 |   |     |   | 16,500 |   |   |   | 721,625 |   |
| President, Chief Financial  |   | 2010   |   |      | 313,375 |   |     |   | 50,000  | (5)               |   |   | 66,000              |   |   |              | – |   |     |   | 8,250 |   |   |   | 437,625 |   |
| Officer and Treasurer       |   |   |   |      |    |   |     |   |    |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |
|                        |   |   |   |      |    |   |     |   |    |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |
| Thomas F. Miller            |   | 2011   |   |      | 300,000 |   |     |   | 40,000  |              |   |   | –             |   |   |              | 292,100 |   |     |   | 16,500 |   |   |   | 648,600 |   |
| Senior Vice President and   |   | 2010   |   |      | 267,708 |   |     |   | – |              |   |   | 49,500              |   |   |              | – |   |     |   | 8,250 |   |   |   | 325,458 |   |
| Chief Operating Officer     |   |   |   |      |    |   |     |   |    |              |   |   |                |   |   |              |    |   |     |   |   |   |   |   |   |   |

| (1) | Represents the fair value of the stock awards as of the date of grant, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 (ASC Topic 718), “Stock Compensation.”  The assumptions that we utilized are described in Note 11, “Stock Options and Stock-based Employee Compensation,” to our consolidated financial statements for the year ended December 31, 2011, in the Form 10-K.  The date of the grant to Messrs. Cooper and Miller was September 27, 2010.  The date of the grant to Mr. Amick was October 18, 2010.  As of December 31, 2011, the amounts reported in the table had not been paid to, nor realized by, the Named Executive Officer; however, these awards vested on March 6, 2012, upon the issuance by the U. S. Food and Drug Administration (FDA) of a marketing approval with respect to our New Drug Application (NDA) for SURFAXIN® for the prevention of RDS in premature infants at high risk of RDS (the “SURFAXIN Approval”).  As a result, Messrs, Amick and Cooper and Dr. Miller realized income of $100,001, $75,000, and $56,250, respectively.   Pursuant to the terms of the respective grants, The SURFAXIN approval was the earliest to occur of the following vesting events:  (i) the second anniversary of the date of grant; (ii) the date of the SURFAXIN Approval, or (iii) the effective date of a strategic alliance, collaboration agreement or other similar arrangement for the development and/or commercialization of SURFAXIN, SURFAXIN LSTM or AEROSURF®; with the additional condition that the awardee be actively providing services to us on the vesting date. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents the grant date fair value of the stock options computed in accordance with ASC Topic 718.  The assumptions that we utilized are described in Note 11, “Stock Options and Stock-based Employee Compensation,” to our consolidated financial statements for the year ended December 31, 2011, in the Form 10-K.  The amounts reported in the table have not been paid to, nor realized by, the Named Executive Officer.  The Compensation Committee approved on October 7, 2011, a grant to Messrs. Amick and Cooper and Dr. Miller of an option to purchase 400,000, 250,000 shares and 200,000 shares, respectively, with an exercise price of $1.83; and on July 7, 2010, a grant to Mr. Amick of an option to purchase 2,000 shares at an exercise price of $2.70.  All options granted in 2011 vest in a series of three successive equal annual installments beginning with the first year anniversary of the grant.  The options granted in 2010 to Mr. Amick vested on the first anniversary, July 7, 2011.  All options have a term of 10 years. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents $247,000 paid in 2010 under the terms of the Interim CEO Agreement (as defined below), and an additional $83,333 in salary paid in 2010 under an Executive Employment Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | This amount includes temporary living expenses for 2011 and 2010, of $63,422 and $12,617, respectively. Total Director compensation paid to Mr. Amick in 2010 was $31,500. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Represents a special bonus awarded at the time that Mr. Cooper was elected President to acknowledge his executive management responsibility and efforts during the transition from the departure of our former President and Chief Executive Officer through Mr. Amick’s tenure as Interim Chief Executive Officer. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                  |   | Option Awards                                                       |   | Stock Awards (RSAs) |                                                                   |
|-----------------------|--------|---------------------------------------------------------------------|--------|---------------------|------------------------------------------------------------------------|
| NamedExecutiveOfficer |   | No. of Securities Underlying Unexercised Options –Exercisable |   |                | No. of Securities Underlying Unexercised Options – Unexercisable |   |   | OptionExercisePrice ($)* |   | OptionExpirationDate |   | Equity Incentive Plan Awards: No. of Unearned Shares, Units or Other Rights That Have Not Vested |   |   | Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |   |
| W. Thomas Amick       |   |                                                                | 1,667  | (1)                 |                                                                   |   |   |   | $ | 156.45 |   | 3/23/14 |   |   |   |   | $ | – |   |
|                  |   |                                                                | 2,000  | (1)                 |                                                                   |   |   |   |   | 130.95 |   | 9/14/14 |   |   |   |   |   |   |   |
|                  |   |                                                                | 1,667  | (1)                 |                                                                   |   |   |   |   | 94.20 |   | 5/13/15 |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,000  | (1)                 |                                                                   |   |   |   |   | 23.85 |   | 6/8/16 |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,667  | (1)                 |                                                                   |   |   |   |   | 49.05 |   | 6/21/17 |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,000  | (1)                 |                                                                   |   |   |   |   | 30.45 |   | 6/11/18 |   |   |   |   |   |   |   |
|                  |   |                                                                | 4,000  | (1)                 |                                                                   |   |   |   |   | 7.35 |   | 9/3/19 |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,000  | (1)                 |                                                                   |   |   |   |   | 2.70 |   | 7/7/20 |   |   |   |   |   |   |   |
|                  |   |                                                                |   |                |                                                                   |   | 400,000 | (7) |   |   | 1.83 |   | 10/7/21 |   |   |   |   |   |   |   |
|                  |   |                                                                |   |                |                                                                   |   |   |   |   |   |   |   |   |   |   | 26,667 | (8) |   |   | 44,801 |   |
| John G. Cooper        |   |                                                                | 7,000  | (2)                 |                                                                   |   |   |   |   |   | 25.80 |   | 6/27/12 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,000  | (2)                 |                                                                   |   |   |   |   |   | 28.35 |   | 11/5/12 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 5,333  | (4)                 |                                                                   |   |   |   |   |   | 41.25 |   | 12/13/12 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 5,333  | (3)                 |                                                                   |   |   |   |   |   | 121.19 |   | 9/12/13 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 13,333 | (5)                 |                                                                   |   |   |   |   |   | 137.55 |   | 12/15/13 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 5,000  | (6)                 |                                                                   |   |   |   |   |   | 97.05 |   | 8/12/14 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 5,000  | (5)                 |                                                                   |   |   |   |   |   | 135.30 |   | 12/17/14 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 3,333  | (2)                 |                                                                   |   |   |   |   |   | 105.15 |   | 1/3/16 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 16,666 | (2)                 |                                                                   |   |   |   |   |   | 33.75 |   | 5/17/16 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 13,333 | (2)                 |                                                                   |   |   |   |   |   | 36.90 |   | 12/15/16 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 10,667 | (2)                 |                                                                   |   |   |   |   |   | 49.05 |   | 6/21/17 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 10,000 | (2)                 |                                                                   |   |   |   |   |   | 39.15 |   | 12/11/17 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 8,889  | (7)                 |                                                                   |   |   |   |   |   | 18.15 |   | 12/12/18 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 17,778 | (7)                 |                                                                   |   |   |   |   |   | 28.95 |   | 12/12/18 |   |   |   |   |   |   |   |   |
|                  |   |                                                                |   |                |                                                                   |   | 250,000 | (7) |   |   | 1.83 |   |    10/7/21 |   |   |   |   |   |   |   |   |
|                  |   |                                                                |   |                |                                                                   |   |   |   |   |   |   |   |   |   |   | 20,000 | (8) |   |   | 33,600 |   |

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Table of Contents

|                  |   | Option Awards                                                       |   | Stock Awards (RSAs) |                                                                   |
|-----------------------|--------|---------------------------------------------------------------------|--------|---------------------|------------------------------------------------------------------------|
| NamedExecutiveOfficer |   | No. of Securities Underlying Unexercised Options –Exercisable |   |                | No. of Securities Underlying Unexercised Options – Unexercisable |   |   | OptionExercisePrice ($)* |   | OptionExpirationDate |   | Equity Incentive Plan Awards: No. of Unearned Shares, Units or Other Rights That Have Not Vested |   |   | Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |   |
| Thomas F. Miller      |   |                                                                | 2,333  | (7)                 |                                                                   |   |   |   |   | 118.50 |   | 8/31/14 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 1,666  | (5)                 |                                                                   |   |   |   |   | 135.30 |   | 12/17/14 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,000  | (2)                 |                                                                   |   |   |   |   | 100.35 |   | 6/10/15 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 2,333  | (2)                 |                                                                   |   |   |   |   | 105.15 |   | 1/3/16 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 4,667  | (2)                 |                                                                   |   |   |   |   | 21.00 |   | 6/12/16 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 1,000  | (2)                 |                                                                   |   |   |   |   | 29.85 |   | 7/6/16 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 6,667  | (2)                 |                                                                   |   |   |   |   | 36.90 |   | 12/15/16 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 5,333  | (2)                 |                                                                   |   |   |   |   | 49.05 |   | 6/21/17 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 7,334  | (2)                 |                                                                   |   |   |   |   | 39.15 |   | 12/11/17 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 3,333  | (7)                 |                                                                   |   |   |   |   | 18.15 |   | 12/12/18 |   |   |   |   |   |   |   |   |
|                  |   |                                                                | 6,666  | (7)                 |                                                                   |   |   |   |   | 28.95 |   | 12/12/18 |   |   |   |   |   |   |   |   |
|                  |   |                                                                |   |                |                                                                   |   | 250,000 | (7) |   |   | 1.83 |   | 10/7/21 |   |   |   |   |   |   |   |   |
|                  |   |                                                                |   |                |                                                                   |   |   |   |   |   |   |   |   |   |   | 15,000 | (8) |   |   | 25,200 |   |

----

| * | The Option Exercise Price has been adjusted where applicable to reflect the 1-15 reverse stock split effective December 28, 2010. |
|---|-----------------------------------------------------------------------------------------------------------------------------------|

| (1) | These options vested and became exercisable on the first anniversary of the date of grant, and expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | These options vested and became exercisable in four equal installments on the date of grant and the next three anniversaries of the date of grant, and expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | These options vested and became exercisable as follows: one fourth on the date of grant and thereafter in 24 equal installments at the close of each of the following 24 months.  These options expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | These options vested and became exercisable on December 13, 2006.  The options expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | As granted, these options vested and became exercisable as follows: one fourth on the date of grant and thereafter in 36 equal installments at the close of each of the following 36 months.  In December 2005, the Compensation Committee accelerated the vesting of all stock options that at the time had an exercise price of $135.30 or greater, subject to a written “lock-up” agreement, which has since expired. The options expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | These options vested and became exercisable as follows: one fourth on the date of grant and thereafter in 36 equal installments at the close of each of the following 36 months.  These options expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | These options vest and become exercisable in three equal installments on the first three anniversaries of the date of grant, and expire, as listed above, on the tenth anniversary of the date of grant. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | These RSAs vested on March 6, 2012, the date of the SURFAXIN Approval, which was the earliest to occur of the following vesting events: (i) the second anniversary of the date of grant; (ii) the date of the SURFAXIN Approval, and (iii) the effective date of a strategic alliance, collaboration agreement or other similar arrangement for the development and/or commercialization of SURFAXIN, SURFAXIN LS or AEROSURF; with the additional condition that the awardee be actively providing services to us on the vesting date. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Upon termination by us without Cause or by the executive for Good Reason, as defined in the Executive Agreements, the executive is entitled to: a lump sum payment that is equal to one and one half times the sum, for Messrs Amick and Cooper,  and one time the sum, for Dr. Miller, of his base salary then in effect and the largest annual cash bonus received by the executive with respect to the three fiscal years immediately preceding the date of termination (the “Highest Annual Bonus”) for; continuation of health benefits (or their equivalent) for the executive and the members of the executive’s family who were participating in our health and welfare plans at the time of termination for a period of one and one-half years, for Messrs Amick and Cooper, and a period of one year, for Dr. Miller, following the date of termination, reduced to the extent that a subsequent employer provides the executive with substantially similar coverage (on a benefit-by-benefit basis). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Upon termination in connection with a “change in control” as that term is defined in the Executive Agreements (“Change in Control”), the executive is entitled to: a lump sum payment that is equal to, for Messrs Amick and Cooper,  two and one half times the sum, and for Dr. Miller, two times the sum, of his base salary then in effect and the Highest Annual Bonus preceding the Change in Control; continuation of health benefits (or their equivalent) for the executive and the members of the executive’s family who were participating in our health and welfare plans at the time of termination for a period of two and one-half years, for Messrs Amick and Cooper, and a period of two years, for Dr. Miller, following the date of termination, reduced to the extent that a subsequent employer provides the executive with substantially similar coverage (on a benefit-by-benefit basis) |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Upon termination by us without Cause or by the executive for Good Reason, or in the event of Change in Control, in each case as defined in the Executive Agreements, the executive is entitled to: a pro rata bonus payable in a lump sum payment that is equal to the Highest Annual Bonus immediately preceding the Change in Control or termination, multiplied by a fraction the numerator of which is the number of days the executive was employed by us in the current fiscal year and the denominator of which is 365; outplacement counseling assistance in the form of reimbursement for reasonable expenses incurred by the executive within 12 months following the date of termination, up to a maximum amount of $40,000; to the extent that the executive is subject to certain excise taxes under Section 4999 of the Internal Revenue Code, reimbursement of those excise taxes; and any additional federal, state, local and excise tax resulting from such gross-up payments and accelerated vesting of unvested stock options and restricted stock and other awards, if any, under our Equity and Long-Term Incentive Plans. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Upon a Change in Control and assuming the executive remains employed with the acquirer, the executive’s annual bonus in each of the two fiscal years immediately following the Change in Control must be at least equal to the Highest Annual Bonus preceding the Change in Control.  In addition, a termination is considered “termination in connection with a change of control” if the executive’s employment is terminated other than for cause or by the executive for Good Reason during the 24 months following the change of control. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In addition, Mr. Amick is entitled to reimbursement of certain expenses associated with travel, housing and other incidentals, to be paid in accordance with guidelines of the Internal Revenue Service.  Mr. Amick is entitled to tax gross-up payments for these transition expenses.  For the year ended December 31, 2010, Mr. Amick was paid transition expense reimbursements of $7,977.14 and tax gross-up payments of $4,640.  For the year ended December 31, 2011, Mr. Amick was paid transition expense reimbursements of $39,259 and tax gross-up payments of $24,163.   For the period from January 1, 2011 through May 3, 2012, we have agreed to reimburse Mr. Amick for expenses associated with travel, local housing and other incidentals, exclusive of any gross-up, in amounts not to exceed $55,025. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                        |   | Fees Earned or Paid in Cash |   |   | Option Awards |   |    | Total  |   |
|-----------------------------|--------|-----------------------------|--------|--------|---------------|--------|---------|--------|--------|
|                        |   |                        |   |   |          |   |    |   |   |
| Antonio Esteve, Ph.D.       |   | $                           | 18,000 |   |          | $      | – |   |   | $ | 18,000 |   |
| Max E. Link, Ph.D.          |   |                        | 24,000 |   |          |   | – |   |   |   | 24,000 |   |
| Bruce A. Peacock            |   |                        | 23,872 |   |          |   | – |   |   |   | 23,872 |   |
| Marvin E. Rosenthale, Ph.D. |   |                        | 24,000 |   |          |   | – |   |   |   | 24,000 |   |

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Table of Contents

| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|----------|------------------------------------------------------------------------------------------------|

| Plan Category                                          |   | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights(a) |      |   | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights(b) (4) |   |   | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))(c) |   |
|--------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|-----------|--------|------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity compensation plans approved by security holders |   |                                                                                           |      |   |                                                                               |   |   |                                                                                                                                           |   |
|                                                   |   |                                                                                           |      |   |                                                                               |   |   |                                                                                                                                           |   |
| 2011 Long-Term Incentive Plan                          |   |                                                                                           | 1,709,000 |   |                                                                               | $      | 1.83   |                                                                                                                                           |   |   | 2,105,876 |   |
|                                                   |   |                                                                                           |      |   |                                                                               |   |   |                                                                                                                                           |   |   |   |   |
| 2007 Long-Term Incentive Plan(1)                       |   |                                                                                           | 296,946   | (2)    |                                                                               | $      | 24.56  |                                                                                                                                           |   |   |   |   |
|                                                   |   |                                                                                           |      |   |                                                                               |   |   |                                                                                                                                           |   |   |   |   |
| Amended and Restated 1998 Stock Incentive Plan (3)     |   |                                                                                           | 432,105   |   |                                                                               | $      | 77.27  |                                                                                                                                           |   |   |   |   |
|                                                   |   |                                                                                           |      |   |                                                                               |   |   |                                                                                                                                           |   |   |   |   |
| Total                                                  |   |                                                                                           | 2,438,051 |   |                                                                               | $      | 17.97  |                                                                                                                                           |   |   | 2,105,876 |   |

| (1) | The 2007 Plan terminated on the effective date of the 2011 Plan.  All shares that were available under the 2007 Plan, including any that are expired, forfeited or otherwise returnable to the Plan are transferred to and become available for grant under the 2011 Plan.  All awards granted under the 2007 Plan continue to be governed by the terms of the 2007 Plan and the award agreements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Does not include 128,334 shares of common stock under RSAs issued to employees subject to vesting conditions in 2010 that had not vested as of December 31, 2011.  The shares  vested on March 6, 2012, the date of SURFAXIN Approval, in accordance with the terms of the RSAs.  See, note 1 to the Summary Compensation Table. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The 1998 Plan expired on the effective date of the 2007 Plan.  All awards granted under the 1998 Plan continue to be governed by the terms of the 1998 Plan and the award agreements. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights has been adjusted where applicable to reflect the 1-15 reverse stock split effective December 28, 2010. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| Name and Addressof Beneficial Owner (1)                  |   | CommonStock |    |   | Common StockEquivalents (2) |   |    | Total BeneficialOwnership |   |   | Percentage of ClassBeneficially Owned (1) |   |
|----------------------------------------------------------|--------|-------------|---------|--------|-----------------------------|--------|---------|---------------------------|--------|--------|-------------------------------------------|--------|
| Non-Executive Directors                                  |   |        |    |   |                        |   |    |                      |   |   |                                      |   |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |
| Antonio Esteve, Ph.D. (3)                                |   |        | 213,779 |   |                        |   | 15,666  |                      |   |   | 229,445                                   |   |   |   | * |   |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| Max E. Link, Ph.D.                                       |   |        | 11,121  |   |                        |   | 14,333  |                      |   |   | 25,454                                    |   |   |   | * |   |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| Bruce A. Peacock                                         |   |        | – |   |                        |   | 2,667   |                      |   |   | 2,667                                     |   |   |   | * |   |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| Marvin E. Rosenthale, Ph.D.(4)                           |   |        | 23,333  |   |                        |   | 14,333  |                      |   |   | 37,666                                    |   |   |   | * |   |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| Named Executive Officers                                 |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| W. Thomas Amick                                          |   |        | 39,947  |   |                        |   | 18,001  |                      |   |   | 57,948                                    |   |   |   | * |   |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| John G. Cooper                                           |   |        | 36,927  |   |                        |   | 123,665 |                      |   |   | 160,592                                   |   |   |   | * |   |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| Thomas F. Miller                                         |   |        | 29,570  |   |                        |   | 43,332  |                      |   |   | 72,902                                    |   |   |   | * |   |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| Executive Officers and Directors as a group (14 persons) |   |        | 485,805 |   |                        |   | 372,662 |                      |   |   | 858,467                                   |   |   |   | 1.96 | % |
|                                                     |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| No 5% Security Holders                                   |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |
| * Less than 1%                                           |   |        |    |   |                        |   |    |                      |   |   |                                      |   |   |   |   |   |

----

| (1)  | Beneficial ownership is determined in accordance with Rule 13d-3 under the Exchange Act and includes voting and investment power with respect to shares of common stock.  Shares of common stock, and shares of common stock subject to options or warrants currently exercisable or exercisable within 60 days after March 31, 2012 held by each person or group named above, are deemed outstanding for computing the percentage ownership of the person or group holding such options or warrants, but are not deemed outstanding for purposes of computing the percentage ownership of any other person or group. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | Common Stock Equivalents include shares of common stock subject to options or warrants currently exercisable or exercisable within 60 days after March 31, 2012 held by each person or group named above. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | Beneficial ownership of common stock includes 192,294 shares owned by Laboratorios Esteve, 21,144 shares owned by Laboratorios P.E.N., S.A., an affiliate of Laboratorios Esteve, and 341 shares owned directly by Dr. Esteve.  Common Stock Equivalents includes 15,666 shares of common stock issuable upon the exercise of outstanding options held by Dr. Esteve.  As a consequence of Dr. Esteve’s relationship with Laboratorios Esteve, including, serving as President of Laboratorios Esteve, he may be deemed to have beneficial ownership of the shares owned by Laboratorios Esteve and Laboratorios P.E.N. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)  | Total beneficial ownership shown in the table includes 8,333 shares as to which Dr. Rosenthale disclaims beneficial ownership of shares held by his spouse. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

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Table of Contents

| ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
|----------|----------------------------------------|

| Fee Category:      |   | Fiscal 2011 |    |   | % of Total |   |    | Fiscal 2010 |   |   | % of Total |   |
|--------------------|--------|-------------|---------|--------|------------|--------|---------|-------------|--------|--------|------------|--------|
|               |   |        |    |   |       |   |    |        |   |   |       |   |
| Audit Fees         |   | $           | 232,000 |   |       |   | 74      | %           |   | $      | 230,000    |   |   |   | 57 | % |
| Audit-Related Fees |   |        | 58,000  |   |       |   | 18      | %           |   |   | 130,000    |   |   |   | 32 | % |
|               |   |        |    |   |       |   |    |        |   |   |       |   |   |   |   |   |
| Tax Fees           |   |        | 26,500  |   |       |   | 8       | %           |   |   | 26,000     |   |   |   | 7 | % |
|               |   |        |    |   |       |   |    |        |   |   |       |   |   |   |   |   |
| All Other Fees     |   |        | – |   |       |   | – |        |   |   | 15,000     |   |   |   | 4 | % |
| Total Fees         |   | $           | 316,500 |   |       |   | 100     | %           |   | $      | 401,000    |   |   |   | 100 | % |

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Table of Contents

| ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. |
|----------|---------------------------------------------|

----

Table of Contents

SIGNATURES

|                 | DISCOVERY LABORATORIES, INC. |
|----------------------|------------------------------|
|                 |                         |   |
| Date: April 27, 2012 | By:                          | /s/ W. Thomas Amick |
|                 |                         | W. Thomas Amick |
|                 |                         | Chairman of the Board and |
|                 |                         | Chief Executive Officer |

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Table of Contents

| Exhibit No. |   | Description                                                                                                                                          |   | Method of Filing                                                                                                                      |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 3.1         |   | Amended and Restated Certificate of Incorporation of Discovery Laboratories, Inc. (Discovery), as amended as of and October 3, 2011                  |   | Incorporated by reference to Exhibit 3.1 to Discovery's Form 8-K, as filed with the SEC on October 3, 2011.                           |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 3.2         |   | Certificate of Designations, Preferences and Rights of Series A Junior Participating Cumulative Preferred Stock of Discovery, dated February 6, 2004 |   | Incorporated by reference to Exhibit 2.2 to Discovery’s Form 8-A, as filed with the SEC on February 6, 2004.                    |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 3.3         |   | Amended and Restated By-Laws of Discovery, as amended effective September 3, 2009                                                                    |   | Incorporated by reference to Exhibit 3.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on September 4, 2009. |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 4.1         |   | Shareholder Rights Agreement, dated as of February 6, 2004, by and between Discovery and Continental Stock Transfer & Trust Company              |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on February 6, 2004. |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 4.2         |   | Class C Investor Warrant, dated April 17, 2006, issued to Kingsbridge Capital Limited                                                                |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 21, 2006.    |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 4.3         |   | Warrant Agreement, dated November 22, 2006                                                                                                           |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on November 22, 2006. |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 4.4         |   | Warrant Agreement dated May 22, 2008 by and between Kingsbridge Capital Limited and Discovery                                                        |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K as filed with the SEC on May 28, 2008.       |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 4.5         |   | Warrant Agreement dated December 12, 2008 by and between Kingsbridge Capital Limited and Discovery                                                   |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on December 15, 2008. |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 4.6         |   | Form of Stock Purchase Warrant issued in May 2009                                                                                                    |   | Incorporated by reference to Exhibit 10.3 to Discovery’s Current Report on Form 8-K, as filed with the SEC on May 8, 2009.      |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 4.7         |   | Form of Stock Purchase Warrant issued in February 2010                                                                                               |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on February 18, 2010. |
|        |   |                                                                                                                                                 |   |                                                                                                                                  |
| 4.8         |   | Warrant Agreement, dated as of April 30, 2010, by and between Discovery and PharmaBio                                                                |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 28, 2010.    |

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Table of Contents

| Exhibit No. |   | Description                                                                                                                                           |   | Method of Filing                                                                                                                                                                  |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 4.9         |   | Warrant Agreement dated June 11, 2010 by and between Kingsbridge Capital Limited and Discovery                                                        |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 14, 2010.                                                 |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 4.10        |   | Form of Five-Year Warrant issued on June 22, 2010                                                                                                     |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 17, 2010.                                                 |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 4.11        |   | Form of Short-Term Warrant issued on June 22, 2010                                                                                                    |   | Incorporated by reference to Exhibit 4.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 17, 2010.                                                 |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 4.12        |   | Warrant Agreement, dated as of October 12, 2010, by and between Discovery and PharmaBio                                                               |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on October 13, 2010.                                              |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 4.13.       |   | Form of Voting Agreement between RSA Holders and Discovery dated November 12, 2010                                                                    |   | Incorporated by reference to Exhibit 4.13 to Discovery’s Annual Report on Form 10-KSB for the year ended December 31, 2010, as filed with the SEC on March 31, 2011.        |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 4.14        |   | Form of Five-Year Warrant issued on February 22, 2011                                                                                                 |   | Incorporated by reference to Exhibit 4.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on February 16, 2011.                                             |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 4.15        |   | Form of Short Term Warrant issued on February 22, 2011                                                                                                |   | Incorporated by reference to Exhibit 4.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on February 16, 2011.                                             |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 10.1+  |   | Sublicense Agreement, dated as of October 28, 1996, between Johnson & Johnson, Ortho Pharmaceutical Corporation and Acute Therapeutics, Inc.      |   | Incorporated by reference to Exhibit 10.6 to Discovery’s Registration Statement on Form SB-2/A, as filed with the SEC on April 18, 1997 (Commission File Number 333-19375). |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 10.2        |   | Registration Rights Agreement, dated June 16, 1998, among Discovery, Johnson & Johnson Development Corporation and The Scripps Research Institute |   | Incorporated by reference to Exhibit 10.28 to Discovery’s Annual Report on Form 10-KSB for the year ended December 31, 1998, as filed with the SEC on April 9, 1999.        |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 10.3 +      |   | Amended and Restate License Agreement by and between Discovery and Philip Morris USA Inc., d/b/a/ Chrysalis Technologies, dated March 28, 2008        |   | Incorporated by reference to Exhibit 10.4 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, as filed with the SEC on May 9, 2008.          |
|        |   |                                                                                                                                                  |   |                                                                                                                                                                              |
| 10.4 +      |   | License Agreement by and between Discovery and Philip Morris Products S.A., dated March 28, 2008                                                      |   | Incorporated by reference to Exhibit 10.5 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, as filed with the SEC on May 9, 2008.          |

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Table of Contents

| Exhibit No.  |   | Description                                                                                                                                   |   | Method of Filing                                                                                                                                                                       |
|--------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.5*        |   | Form of Notice of Grant of Stock Option under the 1998 Stock Incentive Plan                                                                   |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Quarterly Report on Form 10-QSB for the quarter ended September 30, 1999, as filed with the SEC on November 17, 1999.   |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.6*        |   | Discovery’s 2007 Long Term Incentive Plan                                                                                               |   | Incorporated by reference to Exhibit 1.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 28, 2007.                                                      |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.7*        |   | Form of 2007 Long-Term Incentive Plan Stock Option Agreement                                                                                  |   | Incorporated by reference to Exhibit 10.3 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, as filed with the SEC on August 9, 2007.             |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.8*        |   | Form of Stock Issuance Agreement, dated as of October 30, 2007, between Discovery and the Grantees                                            |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on November 5, 2007.                                                  |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.9*        |   | Form of Restricted Stock Award (RSA) Agreement dated September 27, 2010                                                                       |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on October 1, 2010.                                                   |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.10*  |   | Form of 2011 Long-Term Incentive Plan Stock Option Agreement                                                                                  |   | Incorporated by reference to Appendix II to Discovery’s Definitive Proxy Statement on Form DEF 14A, as filed with the SEC on August 15, 2012 (Commission File Number 000-26422). |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.11*       |   | Renewal of Interim CEO Agreement dated July 2, 2010 between W. Thomas Amick and Discovery                                                     |   | Incorporated by reference to Exhibit 10.8 to Discovery’s Quarterly Report on Form 10-Q dated June 30, 2010, as filed with the SEC on August 9, 2010.                             |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.12*       |   | Employment Agreement dated as of October 18, 2010 between Discovery and W. Thomas Amick                                                       |   | Incorporated by reference to Exhibit 10.5 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, as filed with the SEC on November 15, 2010.     |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.13*       |   | Amendment dated August 11, 2011 to the Employment Agreement dated as of October 18, 2010 between Discovery and W. Thomas Amick                |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, as filed with the SEC on August 15, 2011.            |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.14*       |   | Amended and Restated Employment Agreement, dated as of May 4, 2006, by and between Discovery and John G. Cooper                               |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006, as filed with the SEC on May 10, 2006.              |
|         |   |                                                                                                                                          |   |                                                                                                                                                                                   |
| 10.15*       |   | Amendment dated January 3, 2008 to the Amended and Restated Employment Agreement dated as of May 4, 2006 between Discovery and John G. Cooper |   | Incorporated by reference to Exhibit 10.3 to Discovery’s Current Report on Form 8-K, as filed with the SEC on January 3, 2008.                                                   |

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Table of Contents

| Exhibit No.  |   | Description                                                                                                                                                                                                                             |   | Method of Filing                                                                                                                                                          |
|--------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.16*       |   | Amended and Restated Employment Agreement, dated as of June 12, 2006, by and between Discovery and Thomas F. Miller                                                                                                                     |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 27, 2007.                                       |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.17*       |   | Amendment dated December 12, 2008 to the Amended and Restated Employment Agreement dated as of June 12, 2006 between Discovery and Thomas F. Miller                                                                                     |   | Filed herewith.                                                                                                                                                           |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.18+  |   | Amended and Restated Sublicense and Collaboration Agreement made as of December 3, 2004, between Discovery and Laboratorios del Dr. Esteve, S.A.                                                                                        |   | Incorporated by reference to Exhibit 10.28 to Discovery’s Annual Report on Form 10-K for the year ended December 31, 2004, as filed with the SEC on March 16, 2005. |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.19+       |   | Amended and Restated Supply Agreement, dated as of December 3, 2004, by and between Discovery and Laboratorios del Dr. Esteve, S.A.                                                                                                     |   | Incorporated by reference to Exhibit 10.29 to Discovery’s Annual Report on Form 10-K for the year ended December 31, 2004, as filed with the SEC on March 16, 2005. |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.20   |   | Assignment of Lease and Termination and Option Agreement, dated as of December 30, 2005, between Laureate Pharma, Inc. and Discovery                                                                                                    |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Annual Report on Form 10-K for the year ended December 31, 2005, as filed with the SEC on March 16, 2006.  |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.21        |   | Lease Agreement dated May 26, 2004, and First Amendment to Lease Agreement, dated April 2, 2007, by and between TR Stone Manor Corp. and Discovery Laboratories, Inc.                                                                   |   | Incorporated by reference to Exhibits 10.1 and 10.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 6, 2007.                              |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.21   |   | Payment Agreement and Loan Amendment (amending the Second Amended and Restated Loan Agreement, dated as of December 10, 2001, amended and restated as of October 25, 2006) dated April 27, 2010, by and between Discovery and PharmaBio |   | Incorporated by reference to Exhibit 1.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 28, 2010.                                        |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.22        |   | Third Amended Promissory Note dated April 27, 2010 (amending and restating the Second Amended Promissory Note dated as of October 25, 2006), payable to PharmaBio                                                                       |   | Incorporated by reference to Exhibit 1.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 28, 2010.                                        |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.23        |   | Securities Purchase Agreement dated April 27, 2010, by and between Discovery and PharmaBio                                                                                                                                              |   | Incorporated by reference to Exhibit 1.3 to Discovery’s Current Report on Form 8-K, as filed with the SEC on April 28, 2010.                                        |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.24        |   | Securities Purchase Agreement dated October 12, 2010 by and between PharmaBio and Discovery                                                                                                                                             |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on October 13, 2010.                                     |
|         |   |                                                                                                                                                                                                                                    |   |                                                                                                                                                                      |
| 10.25        |   | Registration Rights Agreement, dated as of May 22, 2008, by and between Kingsbridge Capital and Discovery                                                                                                                               |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on May 27, 2008.                                         |

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Table of Contents

| Exhibit No. |   | Description                                                                                                                              |   | Method of Filing                                                                                                                                                                |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 10.26       |   | Registration Rights Agreement, dated as of December 12, 2008, by and between Kingsbridge Capital and Discovery                           |   | Incorporated by reference to Exhibit 10.2 to Discovery’s Current Report on Form 8-K, as filed with the SEC on December 15, 2008.                                          |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 10.27       |   | Common Stock Purchase Agreement dated as of June 11, 2010, by and between Kingsbridge Capital Limited and Discovery.                     |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on June 14, 2010.                                              |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 10.28+      |   | Supply Agreement dated as of December 22, 2010 between by and between Corden Pharma (formerly Genzyme Pharmaceuticals LLC) and Discovery |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on December 29, 2010.                                          |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 10.29*      |   | Separation of Employment Agreement and General Release between Discovery and David L. Lopez, Esq., C.P.A.                                |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on July 18, 2011.                                              |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 10.30       |   | Sales Agency Agreement dated December 14, 2011, between Discovery and Lazard Capital Markets LLC                                         |   | Incorporated by reference to Exhibit 10.1 to Discovery’s Current Report on Form 8-K, as filed with the SEC on December 14, 2011.                                          |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 21.1        |   | Subsidiaries of Discovery                                                                                                                |   | Incorporated by reference to Exhibit 21.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 23.1        |   | Consent of Ernst & Young LLP, independent registered public accounting firm                                                          |   | Incorporated by reference to Exhibit 23.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 31.1        |   | Certification of Chief Executive Officer and Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act             |   | Incorporated by reference to Exhibit 31.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 31.2        |   | Certification of Chief Financial Officer and Principal Accounting Officer pursuant to Rule 13a-14(a) of the Exchange Act                 |   | Incorporated by reference to Exhibit 31.2 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 31.3        |   | Certification of Chief Executive Officer and Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act                  |   | Filed herewith.                                                                                                                                                                 |
|        |   |                                                                                                                                     |   |                                                                                                                                                                            |
| 31.4        |   | Certification of Chief Financial Officer and Principal Accounting Officer pursuant to Rule 13a-14(a) of the Exchange Act                 |   | Filed herewith.                                                                                                                                                                 |

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Table of Contents

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Method of Filing                                                                                                                                                                   |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                               |
| 32.1        |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Incorporated by reference to Exhibit 32.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011.    |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                               |
| 32.2        |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Filed herewith.                                                                                                                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                               |
| 101.1       |   | The following consolidated financial statements from the Discovery Laboratories, Inc. Annual Report on Form 10-K for the year ended December 31, 2011, formatted in Extensive Business Reporting Language (“XBRL”): (i) Balance Sheets as of December 31, 2011 and December 31, 2010, (ii) Statements of Operations for the years ended December 31, 2011 and December 31, 2010, (iii) Statements of Changes in Equity for the years ended December 31, 2011 and December 31, 2010, (iv) Statements of Cash Flows for the years ended December 31, 2011 and December 31, 2010, and (v) Notes to consolidated financial statements. |   | Incorporated by reference to Exhibit 101.1 to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011.   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                               |
| 101.INS     |   | Instance Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Incorporated by reference to Exhibit 101.INS to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                               |
| 101.SCH     |   | XBRL Taxonomy Extension Schema Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Incorporated by reference to Exhibit 101.SCH to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                               |
| 101.CAL     |   | XBRL Taxonomy Extension Calculation Linkbase Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Incorporated by reference to Exhibit 101.CAL to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                               |
| 101.DEF     |   | XBRL Taxonomy Extension Definition Linkbase Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Incorporated by reference to Exhibit 101.DEF to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                               |
| 101.LAB     |   | XBRL Taxonomy Extension Label Linkbase Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Incorporated by reference to Exhibit 101.LAB to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |

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Table of Contents

| Exhibit No. |   | Description                                            |   | Method of Filing                                                                                                                                                                   |
|-------------|--------|--------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                   |   |                                                                                                                                                                               |
| 101.PRE     |   | XBRL Taxonomy Extension Presentation Linkbase Document |   | Incorporated by reference to Exhibit 101.PRE to Discovery’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC on March 30, 2011. |

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